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May Was A Big Month For Franchising

Here's some really exciting news from the world of franchise lending. After a month where franchise lending dropped by 0.5%, loans to franchise businesses increased by 5.73 percent between May and June.

The findings were based on the Franchise Lending Index from the International Franchise Association (IFA) and BoeFly. Boefly also say that franchise financing jumped by 4.5% from June 2011 to June 2012.

"It is encouraging to see sustained growth in franchise lending as franchisee access to financing has reached heights not seen since the government stimulus initiated in response to the financial crisis,” Mike Rozman, co-president of BoeFly, said. “From my perspective, much of the gains are a result of franchisors taking a more active role in supporting franchisees with financing, whether by leveraging IFA best practices, adding full-time employees dedicated to financial support or using web-based marketplaces like BoeFly. In any case, the positive results demonstrate franchisors’ active support of current and future franchisees."

This is hugely positive and further proof that franchising is enjoying great success in 2012.

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