Fewer lenders are three credit bureaus Fairbanks financing the businesses, and those that do so are being increasingly picky about whom they will bankroll. That has left many borrowers turning to other sources of financing.
More people are seeking out loans from the Small Business Administration, which are partially guaranteed by the government, making them less risky -- though some lenders participating in the program are tightening their lending criteria as well. And some would-be franchisees three credit bureaus Fairbanks are even tapping retirement funds. The shakeout is partly due to the mounting defaults by franchisees who got in during good times, perhaps short-changed themselves on working capital and then, when the economy faltered, couldn't cover their loans. "Lenders just don't know what the future will bring," says Robert Snelling, president of Honor Capital Group of Plano, Texas, a financial intermediary between franchisees and financial institutions. Cautious three credit bureaus Fairbanks lenders are less likely to throw money at newer franchises these days. free credit score reports Banks are favoring those with brand names, businesses that aren't seasonal, and, therefore, don't have highly fluctuating cash flow, as well as those that have a solid core of long-term operators. Ventures with only a smattering of locations are being three credit bureaus Fairbanks bypassed, in part because three credit bureaus Fairbanks they lack proof that they can do well in all types of areas or fluctuating economic climates. For would-be entrepreneurs who do get financing, unsecured loans are relatively rare.
Even those with good credit may have to crack their retirement nest eggs to come up with enough cash to make a deal work. "The first thing we want to three credit bureaus Fairbanks know is, 'How much cash do you have? report credit card Any outside income coming in?' " says Rick Anderson, general manager of Franchise Finance of Little Rock, Ark., a company that originates loans and leases for the franchise industry. Anderson says if borrowers have substantial cash, "we'd recommend they put more money into the deal -- maybe 40% to 50%, and three credit bureaus Fairbanks we'd finance it conventionally." If they aren't flush, he says, they still may three credit bureaus Fairbanks have to contribute at least 20% along with collateral -- perhaps just enough from three credit bureaus Fairbanks a retirement account to cover the down payment to qualify for an SBA loan. Brian Colburn, managing director of franchise finance at Butler Capital Corp., a commercial lender in Hunt three credit bureaus Fairbanks Valley, Md., says that the "only bank loans I see being made to new franchisees are if a person has established other relationships with a banker, or has previous experience, or is a local figure in the marketplace. The average Joe, 99% of the time the bank will turn him over to an SBA" office. free 3 in 1 credit report Indeed, with banks becoming three credit bureaus Fairbanks more tight-fisted, the SBA is becoming the place more would-be franchisees are turning to. "It's what the SBA was created for, to provide access to capital for small businesses who can't get it through conventional means," says Christine Reilly, head of small-business three credit bureaus Fairbanks lending at CIT Group Inc., three credit bureaus Fairbanks a New York-based finance company.
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