Speedier signing is one way tech boosts finance
The franchise space has experienced advances through technology, including access to financing. Here are a few of the most notable improvements:
Accessing financing online: Several new web platforms are transforming the way franchisees access financing. For example, franchisees now have several online options to submit their information and receive financing offers from multiple lenders. Other platforms focus on tightly integrated offerings that bring together the franchisor, their respective equipment vendors and financing options.
Real-time transaction communication: Online-based financing programs allow immediate communications to indicate exactly where a franchisee is in the finance process and what’s needed next to move them to the next step. This streamlines the exchange of information.
Faster credit decisions: Technology enables a quicker approval process for franchisees. Lenders now use technology and analytics to better predict the outcome of a respective loan with a franchisee based on credit and pay history. As a result, lenders can render instant approvals with better control of risk concerns.
E-signing. Think of what it takes to sign a typical document—sign here, initial here, sign here, initial here. That’s not to mention the process of getting the paperwork back and forth to the lender, which involves faxing, mailing or showing up in person. Electronic signing alleviates the problem. By being able to electronically and securely sign documents, franchisees will spend mere seconds on the actual signing without the travel or the postage.
Robyn Gault is vice president of strategic accounts for Direct Capital Franchise Group, a national direct lender with 20 years of experience. Reach Gault at firstname.lastname@example.org