Lending to franchise businesses decreased by 3.64 percent from June to July following a 5.73 percent increase in June, according to the Franchise Lending Index from the International Franchise Association (IFA) and BoeFly, an online marketplace connecting small business borrowers with lenders.

Year-over-year performance continued to grow consecutively this year, with a 1.43-percent increase from July 2011 to July 2012.

Despite the modest growth overall for franchisees, the quick-service segment experienced a 28 percent growth in lending year-over-year.

"Despite the drop in credit access this month, it is encouraging to see a seventh consecutive month of year-over-year growth," said Mike Rozman, Co-president of BoeFly. "As credit access continues the slow climb out of the lows of the financial crisis, our data show that lenders are first turning to industries they understand well, such as restaurants."

The IFA/BoeFly Franchise Lending Index is created from a monthly analysis and integration of both proprietary data from BoeFly's marketplace and franchise loan data from the Small Business Administration (SBA). BoeFly's data is collected in real-time based on the activity of more than 2,200 community, regional and national lenders who use BoeFly to most source franchise borrowers. The SBA data used in the analysis dates back to 2002 and covers more than $20 billion in franchise loans.

Read more about franchising and growth.

Related Content

User Comments – Give us your opinion!
Products & Services

Rotisseries

http://global.networldalliance.com/new/images/products/6283.png

6283/Rotisseries

High Quality ATM

http://global.networldalliance.com/new/images/products/4148.png

4148/High-Quality-ATM

Ongoing recruiting needs- Recruiting strategy to meet continual …

http://global.networldalliance.com/new/images/products/6349.png

6349/Ongoing-recruiting-needs-Recruiting-strategy-to-meet-continual-hiring-needs

GoHire

http://global.networldalliance.com/new/images/products/6547.png

6547/GoHire

ExpressNet

http://global.networldalliance.com/new/images/products/ExpressNet_iix.gif

1428/ExpressNet

LG 72WS70MS-B

http://global.networldalliance.com/new/images/products/6421.png

6421/LG-72WS70MS-B

Onboarding + E-Verify- complete new hire paperwork online

http://global.networldalliance.com/new/images/products/6355.png

6355/Onboarding-E-Verify-complete-new-hire-paperwork-online

LG 42LN549E

http://global.networldalliance.com/new/images/products/6447.png

6447/LG-42LN549E

DriverAdvisor Fleet Monitoring

http://global.networldalliance.com/new/images/products/DriverAdvisor_iix.gif

1425/DriverAdvisor-Fleet-Monitoring

Financial Through-the-Wall ATM

http://global.networldalliance.com/new/images/products/FT5000_100_0708.gif

536/Financial-Through-the-Wall-ATM

CONNECT 2014 Mobile Innovation Summit
Request Information From Suppliers
Save time looking for suppliers. Complete this form to submit a Request for Information to our entire network of partners.