Originally published on May 9th, 2013 on The Gazette. Read Original →
Alexander and Julie Tischuk of Tipton were looking for a way to remodel their Hardee’s restaurants.
Stearns Bank in St. Cloud, Minn. was looking to make an investment in such an endeavor.
Naturally, the two connected, thanks to the financing website BoeFly.com.
What exactly is BoeFly?
The website connects borrowers and lenders in order to provide small business loans, commercial loans and franchise financing.
“We got started in trying to address a problem that’s been out there for a while, which is the process of securing loans,” said Mike Rozman, BoeFly’s CEO. “The alternative has always been, borrower will knock on the bank’s door. We started BoeFly with the idea that it should be a more efficient process for business owners to seek and secure financing.”
The concept has drawn comparisons to another popular site that pairs potential matches made in heaven — match.com.
“We view our service not unlike a dating site in which users pay to build a profile, not charging more when they have a really successful date,” Rozman said.
In the case of the Tischuks, the pair was looking to secure a loan to refinance and remodel their Hardee’s restaurants.
“BoeFly turned out to be the most efficient solution for us,” Alexander said. “The platform allowed us to connect with multiple banks throughout the country, and ultimately helped us secure a loan from a bank in a different state that we would not have connected with otherwise.”
Through the site, the Tischuks received a $1.6 million loan from the Minnesota bank.
Hardee’s is one of more than 125 franchisors that have used BoeFly to assist franchisees in securing financing.
BoeFly makes it money by charging user fees of participants and through a small investment made by the franchisor, Rozman said. The borrower also pays a one-time fee, he said.
“They wanted to remodel the existing restaurant, one of the important elements is keeping your location current,” Rozman said. “They were looking for capital to remodel their restaurant; the franchisor pointed them to us. We connected them with the lender who ultimately funded the loan.”
Rozman said there is a “big divide between borrowers and lenders.” The advantage his site provides is the ability to provide clients with answers to questions by professionals, he said.
He said the Tischuk’s have been able to lower the cost of their interest expense.
“Remodeling is always going to more often than not pay dividends,” he said.