SOURCE: The Entrepreneur's Source

The Entrepreneur's Source

June 30, 2011 17:12 ET

Small Business Lending on the Rise According to Recent Surveys

The Entrepreneur's Source Sees "Encouraging" Trend for Aspiring Business Owners

SOUTHBURY, CT--(Marketwire - Jun 30, 2011) - Despite recent economic news, there are signs that the economy is rising above recession rates. This news is found in recent surveys stating that small business lending is on the rise. This is great news, according to Brian Miller, COO and president of The Entrepreneur's Source (TES). "Our coaches work with many aspiring business owners and this research is encouraging to those who want to take control of their life through business ownership."

According to a recent New York Times article, Greenwich Associates, a market research firm for major banks, surveyed small businesses and found that 59 percent had applied for a loan within the preceding 12 months, and demand grew with each quarter. Among small businesses that did apply for a loan, 57 percent reported winning approval from the bank. Greenwich described the small-business lending market as rapidly returning to normal.

Complementing the Greenwich Associates survey, in another new study by Capitol One, 85 percent of U.S. small businesses surveyed say they are able to access the financing they need -- up from 70 percent at the same time last year.

"The availability of capital for aspiring business owners makes business ownership an even more viable option for people in career transition," said Miller. "And it's been our experience that lending institutions can be even more open to provide funding for a franchise."

The International Franchise Association (IFA) works with the financial community and franchisors that play a critical support role in franchise industry growth, which in turn helps drive the economic recovery. At a recent Small Business Lending Summit in Washington, D.C., key leaders of the financial, regulatory and small business communities gathered to take a more proactive role in developing and coordinating an aggressive and collaborative effort to improve credit access and spur business growth.

Strong franchise brands that have a history of success and experienced support teams are viewed as important and tangible assets for lending companies. By viewing credit history, in tandem with the proven record for success of the franchise, lending companies can establish an expectation for loan repayment. Even during difficult economic times, the combined elements of a proven success record of a franchise system and the credit history of the franchise prospect are ideally suited for financing options including:

  • Small Business Association (SBA) Loans
  • Unsecured Loans
  • Direct Bank Financing
  • Equipment Leases
  • Creative Leverage of Existing Assets

"Lending institutions are still quite conservative with their loan policies," according to Jeremy Ames, CEO and co-founder of Guidant Financial. "However, there are two positive trends we are finding in today's financing world. Franchise start-ups are getting money and people are more likely to get a loan when combining multiple borrowing options," he added. "For example, when a lending institution sees more cash on the table from other sources like retirement funds, home equity loans and access to other assets of the borrower, they are more open to offering a loan. In fact, 70 percent of our clients are using multiple forms of financing today," said Ames.

"Our ability to maximize a client's capitalization simply comes through the education we provide," explains Miller. "Many clients have the ability to capitalize their businesses; they simply need to understand what their options are, and explore the creative ways their funds can be obtained."

For more information on franchise opportunities and business coaching support, please visit http://www.entrepreneurssource.com/.

About The Entrepreneur's Source (E-Source)
The Entrepreneur's Source is North America's leading career and Business Coaching Company dedicated to the entrepreneur with more than 230 offices in the United States and Canada. With its unique E-Source Coach Advantage, E-Source offers a full range of services to individuals seeking alternate career options and to franchise businesses looking to increase performance. Today, E-Source dominates the $1.5 billion dollar Business Coaching/Consulting franchise market in North America. Additional news about E-Source, and other FSBI international brands, can be found on http://www.FranchiseNewsRoom.com.