Franchise lending is an expanding opportunity for small business lenders. Many of the larger lenders, who historically provided most of the nation’s franchise lending, have decreased their activity in this area. Small lenders can step in and fill the financing need.
Franchise lending can be a very risky business, particularly in today’s business environment where the rate of new business failure is high. To identify solid franchise loan prospects, lenders must carefully assess the risks of both the franchisee and their business partner, the franchisor. This means reviewing the performance of the franchise system as a whole and their competitive position within their business sector. Essentially, this is double barreled underwriting.
To make a good loan decision, lenders need to get lots of information from the franchisor and know how to use the information to assess the loan risk. In this webinar, listeners will learn what to ask for from the franchisor and how to use the information to identify solid franchisee lending prospects. They will also learn about the SBA franchise loan guarantee guidelines, criteria, and process.
Bob Coleman, Editor of the Coleman Report, a trade newsletter for small business bankers, has gathered three experts on franchise funding to participate in an online seminar. They will share insights and answer your questions related to what small business lenders must consider before financing franchise loans:
* Darrell Johnson, FRANdata, President & CEO
Based on his company’s comprehensive database of franchise statistics and performance metrics, FRANdata provides useful franchisor information for lenders’ credit assessments.
* Geoffrey Seiber, FranFund Inc., President & CEO
Described as the “solutions provider focused exclusively on franchise capitalization”, FranFund works with franchisors, franchisees and lenders to develop and implement funding strategies and plans.
* Robert A. Cantanzaro, President, Independence Bank, Providence, RI
Independence Bank is a community bank located in East Greenwich, RI, that is an active SBA PLP lender. Mr. Catanzaro has been active in all facets of SBA lending, including 7(a), 504, LowDoc, Express, CapLines, and the SBA Export Working Capital program.
Online seminar participation is at a cost of $189 per location. To register or to obtain additional information, contact Bob Coleman at firstname.lastname@example.org.