BoeFly Polls Reveal Trends and 2012 Plans for Franchise Finance

Jan. 31, 2012 - PRLog -- New York, NY – A recent webinar hosted by BoeFly, the premier online marketplace connecting small business borrowers with lenders, featuring a panel of leading lenders and franchise industry leaders discussing trends and best practices in franchise finance, found that the lenders and franchisors who joined the webinar hold similar expectations for growth in 2012. Most of the lenders who participated plan to originate more franchise loans in 2012, and most of the franchisors said franchisee access to financing is “very important” for their growth plans. The vast majority of the franchisors also expect to see more growth in 2012 than they did in 2011.

The January 11th webinar polled a group of 133 lenders on topics such as dollar amounts of small business loan originations, start-up equity injection amounts, borrower experience and veteran programs. A group of 120 franchisor executives were asked to answer questions regarding growth in 2012, geographic expansion plans, and the addition and remodeling of units. Both groups were also asked if they would consider using BoeFly as a resource if they were not signed up already, and most of both lenders and franchisors said ‘yes’.

“BoeFly makes it fast and easy for community lenders like Atlantic Coast Bank to connect with borrowers and fund deals that we may never have learned about otherwise,” said Kevin Ellis, Senior Vice President of Small Business Lending at Atlantic Coast Bank in Jacksonville, FL, and one of the six panelists in the webinar. “I will continue to use BoeFly to seek out lending opportunities, as the platform has proven to be very successful for me.”

Lender responses:
•   83% expect to originate more franchise loans than they did last year (94 responded)
•   44% expect to originate $1 million to $20 million in small business loans in 2012 (36 responded)
•   40% require between 11% and 20% equity injection on a start-up, and 39% require between 21% and 25% equity injection (96 responded)
•   88% are willing to fund a borrower’s first franchise unit (92 responded)
•   81.5% would consider participating in programs for veterans (54 responded)

Franchisor responses:
•   84% expect to see more growth in 2012 than they did in 2011 (105 responded)
•   93% said franchisee access to financing is “very important” for their growth plans (57 responded)
•   74.5% plan to expand in the South, and 49% plan to expand in the North, South, East and West in 2012 (55 responded)
•   61.5% plan to add between 0 and 20 new units this year, and 23% plan to add between 21 and 50 new unit (52 responded)

“Based on the insight provided by both lenders and franchisors, it is clear that growth is a priority for both lenders and franchisors this year,” said Mike Rozman, Co-president of BoeFly and the webinar’s moderator. “It is great to know that lenders plan to increase financing within the franchise segment and that franchisors are planning to expand throughout the country, creating numerous job opportunities. It is gratifying to know that both franchisors and lenders will be relying on BoeFly’s platform to reach these goals in a highly efficient way.”  

About BoeFly

BoeFly makes it easier to obtain small business loans (http://www.boefly.com/) by reducing the time, cost, complexity, inefficiency and frustration associated with small business lending.  Its online proprietary matching technology connects small business borrowers with multiple lenders from among its over 1500 participating banks, based on the lending profiles provided by the banks and the information provided in the borrower’s loan request.

Borrowers build a complete decision-ready loan request online using BoeFly’s exclusive “SmartForm” technology which, when completed, provides the information that  over 1500 lenders nationwide indicated to BoeFly they want to see before moving forward with a loan request. The SmartForm is easy to use and guides borrowers through the process. Once BoeFly’s matching technology identifies compatible lenders, borrowers then have complete control over which lenders can instantly access their loan request.  Using BoeFly, borrowers can connect with multiple lenders quickly and easily, providing a greater probability of obtaining a loan, as well as more favorable loan terms resulting from the creation of a competitive marketplace.   Lenders benefit by being presented with only those loan requests that fit their lending profile, dramatically lowering their cost and time of origination.   BoeFly is not a broker.  Borrowers pay a small one-time fee and lenders pay an ongoing subscription fee; BoeFly never charges transaction or referral fees.

BoeFly’s Franchise Solution brings these benefits to the large and growing small business franchisee community and is the choice of over 90 brands including Dunkin’ Donuts, Carl’s Jr., Express Personnel and Kiddie Academy, among many others.

BoeFly’s Affiliate Solution is the financing exchange chosen by the Association of Small Business Development Centers, representing approximately 1,000 centers nationwide, which are funded in part by the U.S. Small Business Administration, to serve small businesses, and Franchise Gator, the leading site for information on franchise opportunities.

BoeFly was founded by small business owners and small business lending experts with extensive small business lending experience. The company is privately-held and is based in New York City. http://www.boefly.com.

Media inquiries:  Bill Fallon/ Keating Co. /212.925.6900/ bfallon@keatingco.com

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BoeFly connects small business borrowers, franchisors, and lenders online to facilitate the process of small business lending. For more information please visit http://www.boefly.com