At We Can Financial, we want to assist you to make the best and most educated decision when selecting a franchise and the appropriate financing process. As you are selecting a franchise, understand that experience and knowledge of the business is invaluable in obtaining a small business loan as a financing method. From start to finish, the criteria can be different for each situation, but the basics remain the same.
Many of our clients approach us after attending a quarterly franchise show, which can give them the impression that owning and operating a franchise is easy and an easy was to make money. This common misconception, leads to the first order of business. Upon a client making a request of getting small business loan finance for a franchise, it is extremely important that the client understands the importance of having experience in the field. Having this experience, preferably management gives the client insight into the line of business they are selecting. At We Can Financial, we inform our clients of the financial obligations, responsibilities, future liabilities, and significant costs associated with small business finance. It is important to understand that nothing comes easy, and the amount of effort and work that the client will have to put into this experience over the next two to three years will be difficult and most likely not very profitable.
However, if the client has not had any previous experience in the line of work they are seeking to enter into a franchise, we highly suggest that the client spend two to three months working in the field. During this time it is recommended that the client discover and experience every aspect of the business. This experience can be crucial for the client when selecting a franchise. It may be an eye opening experience for the client causing him to choose a different avenue, but if the experience is a positive one, we begin the process of reviewing small business loans and financing.
Different franchises chose to operate in different manners. This can affect the type of financing needed and the terms. Selecting a well known franchise in conjunction with good financing arrangements with prime banks is a smart decision. The terms are then the next major part to discuss. The franchisor and other active franchises in the area will want to discuss with the client the following questions:
- How much cash is required for startup costs?
- How much cash reserve is required until the business is expected to break even with the operating expenses?
All these items must be answered, agreed upon, and verified. The final step is that we will assist the client in putting together the required business loan for the desired franchise, with multiple lenders and small business financing programs.
Our knowledgeable staff keeps up to date on the most current updates and what is available and required to obtain certain types of Ontario small business loans. At We Can Financial we have a 90% success rate of helping you deal with the specifics of the financing process of the business and helping you obtain the small business financing to operate a successful franchise.