The lending market has gradually, if slowly, improved since the credit crisis in 2008, with some borrowers, notably large ones, benefiting the most. There’s been one exception: startups. Someone starting a new franchise location has had about as much luck getting a loan as they’d have winning the lottery. But there is some evidence that is starting to change.
According to the International Franchise Association and BoeFly, new unit lending has remained relatively steady, at 47 percent, the past two years. But the lending has increased within some sectors, suggesting that lenders are willing to extend loans to a new business if they’re confident the demand is there.
Read the full article on Restaurant Finance Monitor