Déjà vu: Lending getting competitive—again
The good deals have increased, reports Ron Feldman, CEO of Franchise America Finance, a lender to the franchise sector. And for those with good credit, they have a little bit more leverage than they used to.
“It is really competitive out there,” says Feldman. “The banks have so much money, the pricing is coming down and borrowers are dictating some of the terms.” Even some of the more marginal deals are getting done, he adds.
Feldman’s group often deals with SBA funding, so he sees a lot of smaller deals and first-time startups. “The corporate refugees seem to be buying jobs, and they are going to franchise brokers to find those types of franchises. They are looking for owner-operator franchises, where they can preserve their lifestyle.”
This resurgence of the owner-operator, the individual with one to four units, will be good for certain brands, he said.
Franchisors can meet with SBA lenders, conventional loan providers and many more funding sources at the upcoming Franchise Finance & Growth Conference, April 24-25 at the Four Seasons in Las Vegas. Visit http://tinyurl.com/a9hsut2 for more info.