SCP links hiring practices, financing

TORONTO—At the Choice Fall Conference, Brian Leon, managing director, franchise growth and administration for Choice Hotels Canada, announced that Choice is now partnering with Toronto-based Social Capital Partners (SCP).

Leeat Weinstock, manager, investments for SCP, was on hand to explain what her company can offer Choice investors.

“Social Capital Partners is an organization I came across a couple of months ago,” said Leon. “It’s a financing program for franchisees.  SCP was created by Bill Young, who was very successful in business, and decided to do something in the area of social responsibility.”

SCP facilitates access to financing for new or growing franchisees.  But, unlike the banks, they are a non-profit organization with a mission to help people who have faced employment barriers enter the workplace.  These include single parents, new Canadians, youth, aboriginals and persons with disabilities.

A cross between a lending organization and an  HR support company, SCP provides subordinate debt capital at competitive market rates,  but the financing terms are unique.  SCP ties its interest rate to the number of individuals a franchisee hires through their HR support program—the more people hired, the lower the interest rate becomes.

This means that franchisees have the opportunity to make a significant contribution to members of the community and at the same time reduce the interest rate on their loan.

SCP also provides hiring support services at no added cost.

“As a result, franchisees save time, money and effort which would otherwise be spent placing newspaper ads, sifting through resumes and interviewing unqualified candidates,” the company says.

“When the match is right, candidates hired through our program typically display greater performance, loyalty and pride in their work compared to staff hired through traditional channels (newspaper or online ads)—resulting in higher retention amongst entry-level employees.”

Green and Ross is one of their main clients.  “I spoke to Green and Ross and they spoke so highly of the organization,” said Leon.  He  noted that SCP provided funding at market cost, is a great resource in terms of hiring, reduces costs, produces loyal employees and can provide access to government grant programs franchisees might not know about.

For more information go to www.socialcapitalpartners.ca or contact Leeat Weinstock at leeat@socialcapitalpartners.ca or 416-646-1871 ext. 113.