Franchises Appeal To Small Business Lenders
Written by Jenna Weiner
Franchises seeking small business loans are likely to be approved.
Franchises are poised to benefit from increases in small business lending, according to the Entrepreneur's Source business coaching company.
Pointing to recent Greenwich Associates and Capital One surveys, the Source said demand for small business loans is up, and credit is becoming easier to access. Greenwich Associates found 59 percent of small business respondents to its survey had applied for a loan within the last year, with a 57 percent success rate. Capitol One found 85 percent of respondents had been able to obtain necessary loans, up 15 percent from a year ago.
Brian Miller, president and COO of the Entrepreneur's Source, and Jeremy Ames, CEO and co-founder of Guidant Financial, said franchises are well-positioned to be approved for loans. Miller said the track records of strong franchise brands appeal to prospective lenders. Ames specified that while lending policies are still stringent, franchise start-ups are generally being approved.
In contrast to the good news for small business borrowers in the Capitol One and Greenwich Associates surveys, the Small Business Administration recently reported bank lending to small businesses was down $15 billion in the first quarter of 2011.
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