BoeFly, the premier marketplace for small business borrowers and lenders, has announced that effective today, more than $6.0 billion of small business financing activity has flowed through its online marketplace.
Small business owners, or their professional advisers, rely on BoeFly to efficiently connect with lenders to obtain financing to support their business needs. Lenders, banks and non-banks alike, use BoeFly to connect with serious borrowers they otherwise would not access.
The franchise industry, so dependent on financing to fund both start ups as well as its franchisees’ continuing growth, has turned to BoeFly in record numbers. BoeFly has supported franchisees from 600 unique franchise brands, a level unrivaled by any other loan marketplace. “We know that access to capital is critical to a new franchise owner, which is why we provide BoeFly to all new franchisees,” said Michael Osovksy, VP Strategic Initiatives & Chief Compliance Officer for Driven Brands, parent to Meineke, Maaco, CarStar and other top automotive brands.
Professional commercial loan brokers similarly rely on BoeFly to efficiently source financing for their clients. Brokers also use BoeFly as a CRM to securely collect, organize and store sensitive client data. Brokers then make their financing request available to an array of lenders, while always remaining in control of their client’s proprietary information.
“Commercial Capital Training Group (CCTG), the industry’s premier loan broker training company, was created to help entrepreneurs become successful loan brokers,” said Kris Roglieri, CCTG founder. “We provide all new graduates with access to BoeFly because we know BoeFly helps loan brokers most efficiently support their business clients’ financing needs in a way other online lending marketplaces cannot.”
Banks and non-banks turn to BoeFly to source business borrowers. For instance, WSFS Bank, a Delaware bank, used BoeFly to make a loan to fast growing donut franchise. “Without BoeFly we wouldn’t have met this top quality business owner,” said Morgan E. Johns, Director of Small Business Operations for WSFS Bank. “BoeFly deepens our reach into markets that we want to lend within, while reducing our cost of acquisition. BoeFly securely delivered us the documents that our underwriters needed to evaluate and ultimately close the loan.”
Beyond sourcing new borrowers, banks rely on BoeFly to optimize the sale of the guaranteed portion of an SBA loan. A 2017 analysis prepared for one of its participating banks, which contrasted loans sold on BoeFly against loans sold outside of BoeFly, revealed that sellers on BoeFly captured an additional 60 basis points premium. Moreover, sellers on BoeFly have a more efficient, transparent and controlled loan sale process.
BoeFly’s unique suite of products are designed to meet the needs of borrowers, lenders, brokers and
franchisors. They include:
bQual – A patented online, real-time financing education report that delivers a business owner their FICO score, SBSS (small business score required on SBA loans) and financing education, all without impacting the borrower’s credit. An analysis conducted on two national franchise brands revealed that prospective franchise owners who received their bQual are more than 900% more likely to purchase a franchise.
bVerify – An asset verification, background check, and credit check service. With bVerify information, BoeFly can accelerate the ultimate financing workflow for a given franchise brand.
bFinance – A BoeFly service in which a small business owner receives a dedicated financing expert to support them through the financing process as well as other enhanced features such as their bQual and a business plan writing tool. Loan Sale Marketplace – BoeFly provides lenders with a safe, secure an efficient platform to sell loans, or portions of loans, such as the government guaranteed portion of SBA loans. The Marketplace controls the bid solicitation process and for SBA loan sales, it auto-creates the required SBA documentation, making the process transparent and cost-effective for all participants.
BoeFly used the milestone as an opportunity to analyze activity on the Marketplace. Below are some of its
- Average FICO for posted financing requests: 761
- Average FICO Small Business Scoring System (SBSS Score): 201
- Top sectors:
- Retail trade: 39.8%
- Food services/accommodation: 14.8%
- Healthcare: 12.8%
- Distribution by dollar amount:
- 150,000 – 349,999: 39%
- $350,000 – $999,999: 25%
- >$1,000,000: 13%
“The entire BoeFly team is proud to have reached this milestone. We continue to be focused on providing the most efficient path for small business owners, and their advisors, to secure the financing their businesses need,” said Michael Rozman, BoeFly’s CEO.
BoeFly helps prospective and existing small business owners secure fast, efficient and competitive financing through its online matching platform, which connects borrowers with lenders from among its more than 5,000 participating banks and specialty finance companies. Lenders benefit by being presented with only those loan requests that fit their lending profile, dramatically lowering their time and cost of origination.
BoeFly’s Franchise Sales & Financing System, centered on BoeFly’s patented solution, bQual™, has proven to increase a brand’s lead to sales conversion rate. BoeFly is the leader in franchise lending solutions, having supported franchisees from more than 600 unique franchise brands including Meineke, Checkers/Rally’s and BrightStar Cares.