Franchisees have a greater chance at getting bank loans if they include a Bank Credit Report in their application package, a new survey has found.
A Bank Credit Report provides an independent analysis of the performance of franchise brands in order to introduce and validate the brand to a regional or community lender who may not be familiar with franchising.
Each Bank Credit Report is tailored to compare one franchise system within the context of its peers, and follows standard bank underwriting topics and uses established banking terminology to provide detailed analysis of the brand. Report topics include brand strength, financial and operational risks of the franchisor, franchise system and unit performance, SBA lending outcomes and comparative sector performance to provide context.
According to the survey, Bank Credit Reports are considered nearly essential to get a lender to even consider a loan application, and are instrumental in securing the deal. Read more.