Looking for Ways To Finance a Franchise? There Is Only 1 Way When Financing a Franchise Investment!

You’re there. You have made the decision. You’re committed. You have timelines now. We’re talking about your franchise finance decision and the next challenge you have in the franchise process – financing a franchise. How many ways to finance a franchise are there? Only one… the right way! And we’ll show you how.

The ability to finance your franchise properly and satisfy the requirements of the franchisor without putting you overly in debt is what it’s all about of course. And if you do it right then you of course have the potential to grow a business, profit from it, and build owner equity for either long term resale of personal financial gain. That’s simply what it’s all about, and boy does it help if you like what you are doing, at the same time taking on the entrepreneurship role in Canadian business.

The good news is that your are lucky, because franchising couldn’t be any hotter or more popular. Franchises move goods and services in the billions in Canada, and you’re now part of that movement.

But let’s be realistic, whether it’s a franchise investment of any other business start up the same critical needs apply relative to planning and financing.

Homework. Did you hate it in school? Well here it is again because we strongly suggest to clients that you are now in homework mode when determining how financing a franchise works. It’s all about planning, which includes ensuring you have a profitable potential business on your hands, as well as understanding ways to finance a franchise in Canada.

Business plans are critical to your franchise investment. It’s a case of demonstrating your business has both profit potential plus, and this is what interests the lender, that you have the ability to repay your debt and loans. The franchisor naturally is interested in long term success of the chain, and your ability to pay royalties as they become due, usually monthly.

When you address the franchise finance decision you must consider a number of items – they are as follows – what is the total all in cost, what methods are available to finance each part of the cost breakdown, and finally, and perhaps most importantly, how is the actual financing done.

The costs to assess in a franchise finance investment are as follows – the initial franchise fee, the cost of fixed assets or leaseholds to your business – i.e. equipment, signage, vehicles if required, etc. And finally, if you did all that and didn’t address working capital for ongoing operations and growth then you are setting yourself up for failure.

Clients are always looking to us for a magic solution and a one stop finance strategy for their franchise investment. The closest we can come to that is the government BIL/CSBF loan, under which the majority of franchises are financing in Canada. You can successfully augment this strategy by equipment financing for a variety of assets as well as a small working capital loan, usually unsecured. Don’t forget also that your own owner equity investment becomes the final piece of the puzzle.

And getting back to our business plan, ensure that you have covered off all the debt you need and that if reflects your ability to pay it back.

Financing a franchise. Challenging? Yes, we guess so. Possible? Of course. Speak to a trusted, credible and experienced Canadian business financing advisor with franchise experience who will help you navigate, successfully, the only way to finance your new business – the right way!

Top Online Masters in Finance Programs

Most universities today offer the Masters in Finance as an option within the structure of the MBA program. Schools of business usually have several areas of concentration to choose from in the second year of a two year, full time MBA course of study. At most schools the most popular major for the MBA is Finance. The list of schools below all include finance as an MBA option and in some cases offer additional graduate level options for degrees related to finance, either within the context of corporate operations or as an analytical profession. Some universities offer a Masters in Financial Mathematics for students interested in the complexities of analytics or in a PhD program that specializes in the technology of business finance. The schools listed below all have degree programs designed for career advancement in the business world.

New England College of Business and Finance has been in existence since 1909 when it was founded as the New England Banking Institute. Over the years it has evolved from a finance training institution to a full fledged degree granting college accredited by the New England Association of Schools & Colleges. The Master of Finance degree includes eleven advanced courses that cover International Finance, Applied Quantitative Methods, Enterprise Risk Management, Portfolio Management and several other areas of the academic discipline. The college has a solid background in educating aspiring professionals in the banking and finance industries.

Baker College offers the online MBA in Finance with a program that includes thirty three credit hours devoted to business studies and an additional twenty credit hours for classes in the finance specialization. Among the business core courses are classes in Research & Statistics for Managers, Accounting for the Contemporary Manager and Management Information Systems, so the analytic tools and IT requirements for a Masters in Finance are covered in the first section of the program. Advanced finance classes include Public Finance and International Business Finance.

University of Liverpool has ventured into the international online education field with its online MBA program. Since the program was accredited by the European Foundation for Management Development it has developed a student body drawn from over 175 nations. The MBA in Finance and Accounting is delivered in modules, with each module consisting of classes that increase in complexity. The University provides e-books or printed textbooks at no charge. Finance modules include Investment Strategies, Financial Reporting, Business Finance and Advanced Managerial Accounting.

Kaplan University offers an online Masters of Business Administration with specialization in Finance that can be completed in one year of full time study or two years of part time study. The curriculum includes mergers and acquisitions, international business finance, foreign exchange risk, hedging strategies, and global positioning of assets. Kaplan also offers a MBA in Entrepreneurship that delves into the creative sources and uses of capital involved in a startup.

Northeastern University offers a MBA in Finance online through its School of Business. This area of concentration covers mergers and acquisitions, licensing, joint ventures, and IPOs from a management perspective. There is also a MBA in Entrepreneurship that includes some of these advanced courses. In addition Northeastern offers an online Master of Science in Finance that focuses entirely on the complexities of accounting and finance, quantitative and modeling methods, and international finance structures for global businesses.

Why Business Is Grateful For Equipment Leasing and Financing and Asset Finance Solutions!

Many Canadian business owners and financial managers are under the impression that equipment leasing and financing solutions for their asset finance needs are more expensive than other forms of financing.

However, at the same time thousands of businesses everyday flock to the lease finance solution when they are acquiring equipment. How can a finance solution perceived as ‘ expensive ‘ be one of the most sought after business financing facilities day after day.

It’s because it’s all about the benefits and flexibility. In pure theory if you were paying full price cash or entering into a term loan you could make a technical financial case that lease financing is more expensive.

But it’s never always about price in your personal life, and that’s certainly the case in business. The reality is that the additional benefits of a lease often over weigh any concerns about cost or interest rates. And quite frankly with interest rates at all time lows in Canada companies with fairly decent credit profiles can get equipment financing in the 7-8% range. And, on top of that, if your company doesn’t have a pristine credit profile you still can get approved because Canadian equipment and leasing and financing professions are experts in asset finance, and a lot of emphasis is placed on your company prospects and the asset itself.

Accounting isn’t one of our favorite subjects when clients ask us for leasing assistance, but the reality is the when you use lease finance effectively – for example operating leases, then you are in a position to increase overall return on assets and your banker or other senior lender isn’t overly concerned about that always omnipresent debt to equity ratio he or she is talking about.

When clients talk to us about leasing we can talk about ten or 15 different issues – but to be honest they only often have one – can we get approval for a rate, term and structure that makes sense for our firm? That’s the essential question more often than not. And that’s more often when lease finance steps up to the bar! Lessors take, on balance greater credit risk than financial institutions, and in our words, they are more likely to ‘ buy into your story ‘ – whether that be a turnaround year, a new project coming up, etc.

Lease decisions from your point of view are often driven by the simple question – can the acquisition of this asset grow sales and profits. Asset finance firms understand that and they essentially become your business partner with the additional capital they put into your equipment financing needs. You on the other hand can use that additional cash flow and working capital for general operating purposes. You have matched long term debt – i.e. the lease, with long term capital – your lease finance strategy.

Speak to a trusted, credible and experienced Canadian business advisor in equipment leasing and financing. You” be surprised at the financing approval turnaround and the benefits you didn’t know you could achieve.