Small Improvements In Financing To Spur Franchise Sales Boom

PR Newswire:

The iFranchise Group, a leading franchise consulting firm based near Chicago, and its strategic partner company, Franchise Dynamics, which provides outsourced franchise sales services, are predicting a slow-paced loosening of credit for franchise systems and franchise buyers in the coming months. This comes on the heels of a protracted period, dating back to the early days of the recession, where funding has been extremely difficult to obtain, even for highly-qualified borrowers.

The franchising sector has not been immune to the challenges faced by home-buyers and sellers and small business owners: banks and other lenders, burned during the financial meltdown of 2008, had tightened the reins on just about all lending.

“Historically,” says iFranchise Group CEO, Mark Siebert, “One could reasonably assume that obtaining a loan to purchase a franchise would be a simple process, merely by demonstrating an interest in the business, some collateral, a decent credit score, and a minimal amount of liquid capital. When the banking and housing crisis became the new reality, things changed.” Demand for franchises, however, continues to grow as unemployment remains high. “With all of the pent-up demand created by the continued unemployment situation, even a small change in loan availability will likely create a huge positive impact on franchise sales.”

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