Loans to Franchises Increased in March and Year Over Year: IFA/BoeFly Franchise Lending Index

The IFA/BoeFly Franchise Lending Index found that credit access for franchise businesses rose by 2.92 percent from February to March, and by 1.28 percent from March 2012 to March 2013.
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Franchise Lending Index
BoeFly
Ifa
Franchise loans
Credit Access

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• Lending

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NEW YORK - April 9, 2013 - PRLog -- Lending to franchise businesses increased by 2.92 percent from February to March this year following a decrease of close to two percent from January to February this year, according to the monthly 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.

The Index also found that year-over-year loan volume increased by 1.28 percent from March 2012 to March 2013 after a 2.08-percent decrease from February 2012 to February 2013.

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 3,600 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 increase in franchisee credit access month to month and year over year is a positive sign that could hopefully be maintained in the coming months,” said Mike Rozman, co-president of BoeFly. “Our Franchise Lending Spotlight Conference in Waltham, Mass. last week gave top franchisors the opportunity to educate banks about their brands, which is a critical step in promoting credit access for franchisees and helping to drive small business growth.”

A recent survey BoeFly conducted of lenders nationwide found that 97.6 percent of respondents think it is important for franchise brands to provide information to help banks evaluate financing requests from franchisees, which could in turn positively impact credit access for franchise business owners.

“While the slight uptick in lending to franchise businesses is positive news, there is still a lending shortfall in our industry to meet the forecasted demand for growth, which is why I’ll be pressing this critically important message with policy makers on April 10th at the 3rd Annual Small Business Lending Summit in Washington, D.C.,” said IFA President and CEO Steve Caldeira.

About the IFA/BoeFly Franchise Lending Index

The IFA/BoeFly 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 3,600 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 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 more than 3,600 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 3,600 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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Tags:Franchise Lending Index, BoeFly, Ifa, Franchise loans, Credit Access
Industry:Finance, Lending
Location:New York City - New York - United States
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