Franchisee Credit Access Dropped in September and Year Over Year: IFA/BoeFly Franchise Lending Index

Jessica SarterFranchise Finance

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The Index found loans to franchises decreased by 2.11 percent from August to September, and by 2.01 percent from September 2011 to September 2012, showing the first drop following eight consecutive months of year-over-year gains


New York, NY –
 Lending to franchise businesses dropped by 2.11 percent from August to September following a 3.64-percent increase from July to August, according to the Franchise Lending Index from the International Franchise Association (IFA) and BoeFly, the premier online marketplace connecting small business borrowers with lenders and a strategic ally of IFA to expand credit access within the franchise community.

Year-over-year loan volume also decreased for the first time in eight consecutive months, dropping by 2.01 percent from September 2011 to September 2012. Last month’s Index found that year-over-year franchise loan volume grew significantly by 6.32 percent from August 2011 to August 2012.

The IFA/BoeFly Franchise Lending Index (http://www.boefly.com/franchise-lending-index) is created from a monthly analysis and integration of both proprietary data from BoeFly’s marketplace and franchise loan data from the Small Business Administration (SBA). BoeFly’s data is collected in real-time based on the activity of more than 2,200 community, regional and national lenders who use BoeFly to most efficiently source franchise borrowers. The SBA data used in the analysis dates back to 2002 and covers more than $20 billion in franchise loans.

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