Financing, or lack of it, can often hold potential Franchise owners back from staring their own business. As we move into 2019, there are many ways to go about financing your Franchise. Franchise 360 will connect you with the experts that will help you navigate your options. To get started, let’s review some of the most common financial options available in Canada.
Small Business Loans are available through the Government of Canada – www.ic.gc.ca/eic/site/csbfp-pfpec.nsf/eng/Home for business owners. These loans will aid in the set up of small business with varying terms and conditions.
Use RRSP Investments as collateral or funding. When you are first starting out, you will need cash to buy into the Franchise and get the business going. If you have savings in your RRSP’s you can use that money as collateral or take out the cash as your upfront investment. Cashing out RRSP’s will count as income. Remember to factor the totals into yearly taxes and always speak to an accountant before you move forward with this option.
Start-up costs can add up quickly and purchasing equipment can eat into your savings. There are programs that lease equipment thus helping to reduce your overall start-up costs. Business Development Bank of Canada www.bdc.ca offers options for entrepreneurs to help move the business forward and reach your goals.
Unsecured lines of credit are available resources that will provide liquid cash when you are getting started. Depending on your financial situation, access unsecured lines of credit and use the funds efficiently to advance your business. Most Canadian banks will open lines of credit if you have good credit scores. There is also the opportunity to borrow against the equity in your home to finance business opportunities.
If financing opportunities are a challenge for you, explore these options to see which is best for your current situation. Have questions? The experts at Franchise 360 will help you navigate the entire process from beginning to end. Contact us today to explore our franchise opportunities at www.franchise360.ca