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New Index Shows Franchise Lending On An Upward Swing

Yesterday, we blogged about the huge gaps in employment possibilities and economic output created by a notable in shortfall in franchise lending. As troubling as that information, it was assuring to read only hours later that franchise lending is on an upswing.


This news came via the release of a new index tracking franchise lending that has been created by Boefly in accordance with the International Franchise Association. It was released at the Small Business Lending Summit yesterday. The index shows that franchise lending is up 10.56% from February 2011 to February 2012. This is a promising figure, and it proves that point that despite a continued unwillingness to loan to prospective franchises, new organizations like Boefly are filling a needed void.


"The Index confirms that access to credit in the franchise industry has achieved relative stability, a non-trivial achievement in the wake of the financial crisis," said Mike Rozman, co-president of BoeFly. "Although those seeking more short-term job growth are likely disappointed that a greater percentage of financings aren't going to fund new formations, we are encouraged that franchise owners are better positioned for current profitability and therefore future, more secure growth."


Boefly will continue to monitor the rate of franchise lending via this index on a month-to-month. I'm sure it will prove an excellent resource as in tracking the up's and down's of franchise lending. Let's hope these gains continue in the coming months and years.

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