Franchising financing

Usually, in a history of economic slowdown, he has shown that the franchise flowers virtually like a cherry tree on steroids. But the latter slowdown (2008/2009) proved a must-see festival where there are very few guests.

The basic panic of consumer spending has only been matched by the panic of banks to keep all liquidity such as a jealous woman.

Unfortunately, this panic association has been a bad service to the franchise industry and has actually brought the small business sector to a stop. Stories abound small business owners who have no hope of supporting their bank manager, even if their business has been a success over the last 7 years. Cash flow can be the killer for small businesses and whether business owners can not rely on the clemency of their banks, during periods when suppliers and customers derive their patience to lengthen payment terms. . Who can they count on?

This poses a threat to the culture of companies twice:

o Non-franchised companies that have planned growth projects and had received insurance before 2008 from their banking directors that they could move forward – had the carpet drawn from under them when these assurances were withdrawn and the knee is at the bottom of the realization of layoffs

o The franchised companies that rely on banks to lend money to potential franchisees are also filed when informed that unreasonable interest rates will be charged to anyone in search of finance.

So, what are the answers? Yes, the economy inevitably collects as it always does, but this time we have learned a valuable lesson in our dependence on financial routes. Perhaps there are alternatives for franchisers to build in their offer with respect to fundrage routes for potential franchisees to minimize the impact that banks can have on franchise growth.

At the end of the day, the money is what makes the world revolves, although it is not a just playground where only one powerful hand has the power to hold hands ropes. Let’s do more innovations on how money can move responsibly and securely to businesses that has nothing more than growing, employing people and add to the economy.

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