Franchise Loans for Small Business
Small Business Loans from $150k-$350k and up (higher limits apply for some franchises)
Suitable candidates: National Franchise brands, for franchisors requiring capital for equipment purchase, construction and business set up.
1. Good credit of the business owner(s) BCN score of 650 and up.
2. Good net worth of the business owner, preferably higher than the loan amount requested.
3. Evidence of experience in the field.
4. Business plan.
Franchise financing is one of the most common business finance requirements that we as professionals come across. Many aspiring business owners turn to franchising as a way of minimizing risks associated with start-ups and are willing to pay substantial franchise fees. It is extremely important to have professional finance analyst on the franchise financing deal. As a first step our knowledgeable associates will do in depth market analysis with the list of potential pros and cons of setting up a particular franchise in the location selected by the client. Very often it is better to say no to the idea, then go ahead and invest time and money into the idea just to find out that location could not support the desired business volume, which will most likely lead to business failure.
Also taking a small business loans for franchise opening could be very stressful and often lengthy process, and investing time and money in this process should be considered only after extremely careful and in depth review by professionals who have done this multiple times with proven success. The most important criteria to qualify for small business loan for franchises is well financed candidate with good net worth and significant personal savings.
Financial plan has to be based on existing franchise disclosure, so the plan is realistic and based on actual performance. Franchises by law has to inform potential applicant about existing financial conditions of the network, trends, and by law how many locations closed and went bankrupt. Because of complexities associate with dealing with large corporations, difficult franchise agreements and legal terms in the agreements, besides financial consulting and advise our team at www.WeCanFinancial.ca also provides legal advice with assistance of our experience lawyers so clients can rely on us in every aspect of franchise purchase and have a piece of mind.