The Washington Post – Franchisees still contending with a lack of financing

Link: The Washington Post – Franchisees still contending with a lack of financing

A dearth of available capital, despite the improving economy, is hampering franchise growth amid increased business demand, according to the International Franchise Association.

The industry trade group is part of a coalition, including the Consumer Bankers Association and commercial lender CIT Group, hosting the Small Business Lending Summit on April 7 at the Capital Hilton Hotel in the District. The event aims to bridge the disconnect through sessions highlighting the low-risk profile of franchising, best practices in loan underwriting and legislative policies that can aid small businesses.

Borrowers are having a hard time securing home equity loans, a traditional source of funding for franchisees,­ or putting up commercial assets as collateral in the face of depressed real estate values. Meanwhile, lenders say there is a paucity of credit-worthy applicants. Learn more…

Posted by Matt Haller, IFA Director of Communications