Learning All You Can About Finance and Business

When you are going to learn all you can about finance and business, you want to make sure you are getting the most detailed information that is available. When you go to figure out your finances if you own a business, you want to make sure nothing slips through the cracks.

This is to ensure a prosperous future for your business, as well as getting the most from it. This allows you to find out what you really need for your company, and what you really want out of it. How much do you bring in each month? How much do you put out? Can everything be covered with the input of money from it? These are all very good finance questions to ask yourself, and find the answers to in order to keep your business on its toes.

This helps you get the best business management that you could possibly have when figuring all of the money out. Not only can you find business financing information on the internet, and ways to protect your privacy information, you can also call a professional in the finance business to get information from them. They can also set up a time for one of their finance professionals to come over to your business and help you set up a budget, and a finance plan to better assist you with your finances in the future.

What could be better than having the help from someone who does this for a living, and also know all about ways to save you money for your business. Not only will they help you learn everything you need too but they will also help you balance everything out to make sure you are covering all of your debt so you do not go bankrupt in years to come.

Financing a Franchise in Canada

Clients who are contemplating purchasing a new or existing franchise in Canada are always asking how financing a franchise works in Canada. The Canadian franchise industry is of course huge and covers almost every type of business in Canada. Certainly the majority of franchises seem to be in the Hospitality and QSR (Quick Service Restaurant) industry, but in actuality every type of business has some sort of franchise model attached to it. The franchise concept is many an entrepreneurs’ answer to the Canadian dream of growth and profits through business ownership and self employment.

It should not come as a surprise to Canadian entrepreneurs that there is no one single option of solution for financing a franchise in Canada. The reality is that a number of possibilities exist, and in some cases you must use a combination of these sources to complete the financing successfully.

The main source of financing in Canada for franchising is a government ‘subsidized’ and ‘guaranteed ‘loan from the Federal government. The program has two names, the CSBFL, and the BIL. These are acronyms for the government’s formal name for the program.

We firmly believe that this is the best program, bar none, for rates, terms, and loan structures in Canada. While the program is available and applicable to all Canadian businesses the majority of businesses in Canada that are franchised fall under this program.

That’s the good news, the less than good news is that in many cases you cannot totally complete your business franchise purchase with this loan financing on it own. Why is that? Simply because the program is structured and has limitations on what can be financed.

What can be financed under this program? The answer is 3 items only-

Equipment
Leaseholds
Real Estate

So if your acquisition of a new franchise involves anything other than these three items additional financing sources are needed. Those additional financing sources tend to come from your own personal resources, other structured term loans, and in some cases a vendor take back from either the franchisee you are buying the existing business from, or potentially the franchisor itself. Don’t focus too much on the latter because in case you haven’t guessed by now, franchisors or master franchisors are interested in selling you a franchise so they can build another franchise unit into their network! They aren’t in the finance business per se.

The benefits of the franchise loan structure of the BIL/CSBFL program are significant. For a starter they carry only a 25% personal liability, and secondly the rates (3% over prime) (In 2010 Canadian primes continues to be very low!) are excellent. Under the spirit of the program the loan finances 90% of your eligible expenses. But don’t think that only a 10% equity or personal investment by yourself is going to get you approved. You should in general be thinking of anywhere between 25%+ as your own personal contribution to the business.

In summary, financing a franchise in Canada is a unique specialty type of financing. You don’t want to do it wrong the first time and endanger your prospects of success by poor planning and mis information. Speak to a trusted business financing advisor who has credibility, experience and background in this area of Canadian business financing. With proper planning and assistance you will be on our way to achieve the Canadian dream of business ownership through the franchise model.

Personal Finance Saving Options

There are many options available to one when he or she begins to think about creating a personal finance strategy to help meet their financial goals. Suggested by many is creating a personal strategy to meet financial goals while growing one’s wealth. There are many opportunities offered by banks and credit unions available and an understanding of them will help when one decides to look for one that meets his or her special needs.

Savings accounts have proven crucial when it comes to successful personal finance and although traditional simple savings accounts can offer peace of mind, they do not offer the rewards of other types of savings options. One aspect a person may consider is the investment into CD’s. CD’s are a great way for a person to invest their money into the banking system with less risk than that when one invests his or her money into other avenues.

CD’s are for people who can afford to invest their money over a given time period. After this specific time period, one can cash out their CD for its value along with the interest it has accrued. CD’s normally have a time period until they meet their maturity. One will invest a specific amount of money, normally at least five hundred dollars, and gain interest on that investment which is typically higher than traditional simple savings accounts.

CD’s usually have an investment of six months, nine months, twelve months, and some even five years of a period where one’s money is invested. Normally, the longer amount until maturity will offer one a higher percentage yield upon cash out. One should note that although these offer better returns over simple savings accounts and money market accounts, the rules are more strict than they are for the other more traditional savings accounts.

When one invests in CD’s he or she is not allowed to make any withdrawals of that money until it reaches maturity. This can be limiting for some in the fact that traditional simple savings accounts will allow withdrawals at basically any time in case of an emergency. However, this is not the case when dealing with CD’s. CD’s must mature before you are able to cash them out. When you invest in a CD, the money no longer is yours until the time period has been realized and although if there is any emergency and you must withdraw money, you will be penalized far greater than with other savings accounts and may actually lose money depending one the terms and conditions are with the bank that you use.

No matter if you choose a CD, money market account, or traditional simple savings account, one must always be sure to read the fine print in the terms and conditions. Make sure you understand the terms clearly and you know exactly what the positive and negative aspects are before sticking your money anywhere.