The IFA/BoeFly Franchise Lending Index found that credit access for franchise businesses increased by 2.73 percent from June to July and by 4.71 percent from July 2012 to July 2013.
New York, N.Y. – Lending to franchise businesses increased by 2.73 percent from June to July this year, 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.
The Index also found that year-over-year loan volume grew by 4.71 percent from July 2012 to July 2013 after a 1.66-percent drop from June 2012 to June 2013.
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 3,600 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.
“We are pleased by the positive month-over-month and year-over-year jump in franchise lending,” said Mike Rozman, co-president of BoeFly. “One area that we continue to monitor closely is the volatility in the Index. When the Index experiences a 4.71 percent increase following a 1.66 percent drop, it is clear franchise credit markets are navigating a high level of volatility that should concern franchise brands dependent upon consistent credit access for franchisees.”
“Our members are encouraged to see credit access showing measurable signs of improvement, despite being below the long-term average for franchisee credit access,” said IFA President and CEO Steve Caldeira.
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