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.

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About This Blog

News, notes and commentary on franchise financing, including SBA lending, both the SBA 7(a) program and the SBA 504 program, franchise finance programs, development incentives, big deals and startup lending.

  Mary Jo Larson is the publisher of Franchise Times Magazine and its sister publication, the Restaurant Finance Monitor. She is a frequent speaker at meetings and conferences, and at the Restaurant Finance & Development Conference. You can find her on Twitter at @mlarson1011.
  Reporter Jonathan Maze covers restaurants and finance for Franchise Times. He also writes for our sister publication, The Restaurant Finance Monitor, and writes a daily blog on the restaurant industry at www.restfinance.com. You can also catch him on Twitter at @jonathanmaze.

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