Make Franchisee Financing As Easy As Possible
The Franchise Registry is where lenders come to do franchise financing. When your prospective franchisee are ready to open their unit, or when your existing franchisees need to refinance, your franchise needs to be listed if you want lenders to make the loan.
When your franchise appears on the Franchise Registry you:
- Facilitate franchisee financing process. If your franchise is listed, lenders simply check a box on the loan application, saving them – and your franchisee – weeks of review, extra fees and legal wrangling.
- Lower the financing risk for lenders. In the conservative lending environment that exists now, lenders will only make loans when they can accurately estimate and lower risk. Your listing does that: SBA lenders know that the SBA will guarantee the loan and conventional lenders are able to access information about the franchise system that allows them to properly underwrite the loan.
- Meet the technical requirement of SBA-guaranteed loans. If your franchisees are eligible for SBA financing, the agreement review and pre-approval process will allow you to meet all of the SBA requirements so that they can get the loan.
- Provide lenders with your Bank Credit Report(BCR) When a bank considers your mortgage application, it looks at your credit history. When a lender considers your franchisee’s loan, it looks at your Bank Credit Report. This underwriting information is crucial to lenders when they are making loan determinations.
- Gain a significant marketing venue to highlight your brand. The Franchise Registry website is viewed by tens of thousands of visitors each month. It’s unique listing validates your brand in the eyes of lenders, your peers, and most importantly prospective franchisees.
- Show FRANCHISEES that you support them. Your listing serves as an online and offline proof to show prospects that your system supports its franchisees and do whatever it can to help them get financing. Brands that are listed often publish press releases, link to the Registry from their site, and include their listed in item 10 of their FDD.
And it’s Required. According to a survey by the National Association of Government Guaranteed Lenders (NAGGL) of its membership, 93% of lenders use the Franchise Registry when making franchise loans and 55% require that your franchise brand is listed and pre-approved before they will even consider a loan.
Questions? Call or Email us!
Call us today and we will be happy to walk you through the process.