Does anyone has any idea if there are any restrictions in accessing lending services from Canadian Banks and other financial institutions when the buyer is not a Canadian citizen.
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The personal guarantee is relevant to the risk in the business and to the cash-flows. If you buy an ongoing concern that’s been profitable and significantly so the business can hold up the debt but with buying franchises or startup service business (to your point) the lack of assets makes it harder for the bank to use the business as only collateral. Speaking to my experience in private and pubco ownership of a tech company but others might have had a different experience than mine.
I find the above is magnified when you are buying a business with a weak corporate credit score and your personal credit score is from outside the country either (like me) a Canadian looking for US financing or a non-Canadian looking for Canadian financing.
Maybe someone can describe their experience in similar contexts?
If the banks agree to service the debt with collateral, then the need for personal guarantee is of the table.
I agree that the CAD banks are more conservative, hence the return on the business also similar to that.