The number of franchise owners in the U.S. has guaranteed a steady need for franchise loans according to the International Franchise Association (IFA). These businesses depend on such funds to increase business holdings and improve on current establishments. They are also necessary for creating more jobs, an essential function as franchises constitute one of the largest sectors of public employment in the market.
Recent reports show that funds may be in short supply, but owners aren’t to be deterred. A report by Nation’s Restaurant News stated that those in the food and hospitality industries have shown resilience and persistence, despite the IFA saying lenders may get short-changed. Federal regulators have said that the inability for these small business owners to receive necessary franchise financing was a large factor in causing the recession, a sign that implies support on behalf of economists and officials
The NRN and Washington have recognized that previous improvements in the economy were thanks to the American Recovery and Reinvestment Act, as well as continued perseverance by small business. Still, a press release from the IFA said the shortfall between supply and demand for franchise loans, no matter how small, cannot be tolerated. If your company needs franchise financing but has experienced a disparity in available funds at local banks, an online marketplace like Boefly can help easily expand the reach of your loan application.
“Even though the lending gap is slightly smaller this year, down 5 percent …, the industry is still not able to create the number of jobs and provide the level of economic output we experienced before the recession,” said CEO Steve Caldeira. “If we could close the 18.6 percent gap between supply and demand, franchise businesses would be able to … create or protect more than 522,000 jobs.”