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Franchisee Credit Access Dropped in September and Year Over Year: IFA/BoeFly Franchise Lending Index

The Index found loans to franchises decreased by 2.11 percent from August to September, and by 2.01 percent from September 2011 to September 2012, showing the first drop following eight consecutive months of year-over-year gains

FOR IMMEDIATE RELEASE

 
PRLog (Press Release) - Oct. 22, 2012 - New York, NY – Lending to franchise businesses dropped by 2.11 percent from August to September following a 3.64-percent increase from July to August, according to the Franchise Lending Index from the International Franchise Association (IFA) and BoeFly, the premier online marketplace connecting small business borrowers with lenders and a strategic ally of IFA to expand credit access within the franchise community.

Year-over-year loan volume also decreased for the first time in eight consecutive months, dropping by 2.01 percent from September 2011 to September 2012. Last month’s Index found that year-over-year franchise loan volume grew significantly by 6.32 percent from August 2011 to August 2012.

The IFA/BoeFly Franchise Lending Index (http://www.boefly.com/franchise-lending-index) is created from a monthly analysis and integration of both proprietary data from BoeFly’s marketplace and franchise loan data from the Small Business Administration (SBA). BoeFly’s data is collected in real-time based on the activity of more than 2,200 community, regional and national lenders who use BoeFly to most efficiently source franchise borrowers. The SBA data used in the analysis dates back to 2002 and covers more than $20 billion in franchise loans.

"The drop in the Franchise Lending Index is a reminder to franchise executives that they need to be proactive in helping their franchisees through the financing process, and those that do not will likely face slower growth," said Mike Rozman, co-president of BoeFly.  

A recent survey conducted by BoeFly of more than 100 small business owners, franchisors and lenders found that 32 percent identified financing as the most important aspect of buying and selling a business, and 66 percent identified it as ‘very important.’

"Credit access continues to be a headwind to growth and job creation and while we have seen some improvement in lending, it continues to be hampered by ongoing uncertainty in the tax and regulatory areas," said IFA President and CEO Steve Caldeira.

About the IFA/BoeFly Franchise Lending Index

The IFA/BoeFly Franchise Lending Index (http://www.boefly.com/franchise-lending-index) is created from a monthly analysis and integration of both proprietary data from BoeFly's marketplace and franchise loan data from the Small Business Administration (SBA). BoeFly's data is collected in real-time based on the activity of more than 2,200 community, regional and national lenders who use BoeFly to most efficiently source franchise borrowers. The SBA data used in the analysis dates back to 2002 and covers more than $20 billion in franchise loans. The Index, a time series index set to a value of 100 in January 2002, creates an insightful, standard measure of franchise credit access. The Index is an initiative of the strategic alliance between the IFA and BoeFly announced in 2012.

About BoeFly

BoeFly (http://www.boefly.com) makes it easier to obtain small business loans 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 more than 2,200 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. When completed, this provides the information that more than 2,200 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, now in a Strategic Alliance with the International Franchise Association to expand credit access to franchisees, offers a Franchise Solution that brings these benefits to the large and growing small business franchisee community and is the choice of more than 125 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.

About the International Franchise Association

The International Franchise Association is the world's oldest and largest organization representing franchising worldwide. Celebrating over 50 years of excellence, education and advocacy, IFA works through its government relations and public policy, media relations and educational programs to protect, enhance and promote franchising. Through its media awareness campaign highlighting the theme, Franchising: Building Local Businesses, One Opportunity at a Time, IFA promotes the economic impact of the more than 825,000 franchise establishments, which support nearly 18 million jobs and $2.1 trillion of economic output for the U.S. economy. IFA members include franchise companies in over 300 different business format categories, individual franchisees and companies that support the industry in marketing, law and business development.

Media inquiries:

Bill Fallon | keating/co. | 212.925.6900 | bfallon@keatingco.com

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Source:BoeFly, LLC
Country:United States
Industry:Finance, Loans
Tags:BoeFly, international franchise association, Franchise Lending Index, franchise financing, sba
Last Updated:Oct 22, 2012
Shortcut:prlog.org/12005007
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