Lending to franchise businesses saw a drop of about 0.5 percent from April to May, according to the monthly 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. Despite the drop from month to month, however, year-over-year performance for lending to franchises has been more positive, with a gain of 6.01 percent from May 2011 to May 2012.
“The slight drop in franchise lending over the past couple months speaks to the challenges of the current credit market, but it is positive to see that lending to franchise businesses has shown stable year-over-year growth,” said Mike Rozman, co-president of BoeFly. “Having tools such as this index puts both franchisors and franchisees in a better position to understand and address the challenges associated with credit access so they can identify trends and opportunities for growth over the long term.”
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