BoeFly Polls Reveal How Banks Evaluate Franchise Brands

March 12, 2012 - PRLog -- New York, NY – A recent webinar moderated by BoeFly, the premier online marketplace connecting small business borrowers with lenders and a strategic ally of the International Franchise Association (IFA) to expand credit access within the franchise community, gathered insight and poll results from a group of 158 franchisors, lenders and others about how banks work toward understanding franchise brands when evaluating franchisees’ loan requests. The webinar specifically focused on how banks and franchisors can use the Bank Credit Report^SM produced by FRANdata, which provides lenders with an objectively prepared, credit department-style evaluation of a franchise brand’s risk factors, including franchisor financial and operational risks and franchise system and franchise unit performance risks.

The March 1st webinar polled a group of 65 lenders about what they look for when evaluating franchise brands in connection with franchisee financing requests. The majority – 45% of 38 lenders who responded – cited “SBA Default/Charge-off stats” as the single most important factor when evaluating a brand. Many of the lenders who responded also chose the number of years the brand has been franchising and statistics on unit closures as other important factors.

In another poll, 98% of 41 lenders who responded said it is important for brands to supply system-related information in connection with financing requests.

“At Chase, our primary focus is underwriting the borrower, and while we have to make sure the borrower is someone we want to lend to, part of being prudent is also understanding that brand,” said Brian Myers, SBA Credit Manager at Chase and a panelist in the webinar. “The BCR offers us a great deal of information that helps us underwrite the entire deal and understand the entire deal beyond the borrower, but also the support that the franchisor offers.”

In a poll directed toward franchisors, 91% of 55 franchisors who responded said it is the responsibility of franchisors to support franchisees in accessing capital.

“Access to capital is a key issue facing the franchise industry right now, and it is more important than ever for lenders to fully understand the financing requests they receive from franchise borrowers,” said Mike Rozman, Co-president of BoeFly and the webinar’s moderator. “A large part of this understanding is obtaining accurate and adequate information on the franchise brand and not just the franchisee requesting the loan, and FRANdata’s BCR is a highly useful tool for that purpose.”

BoeFly offers the BCR, generally priced at $5,000, at a discounted rate to its more than 100 franchisor members.

To view and listen to the full webinar and read the full transcript, please follow this link:  http://www.boefly.com/blog/video/exploring-the-bank-credi...

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 over 1500 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 which, when completed, provides the information that over 1500 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 within the franchise community (http://www.boefly.com/ifa.cfm), offers a Franchise Solution that brings these benefits to the large and growing small business franchisee community and is the choice of over 100 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.

Media inquiries:

Bill Fallon/ Keating Co. /212.925.6900/ bfallon@keatingco.com

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BoeFly connects small business borrowers, franchisors, and lenders online to facilitate the process of small business lending. For more information please visit http://www.boefly.com