Bank Credit Report
The Bank Credit Report ™ looks at a franchise brand’s actual performance history to create a comprehensive standardized credit risk analysis that allows lenders to underwrite loans with better data. The results are more approvals and better terms for franchisees.
In fact, brands with BCR’s grow faster than brands who do not use a BCR in their development process.
Simply put, a BCR gives conventional lenders better information to structure loans. With a BCR, the franchisor is able to lower their perceived risk which means better chances of improved loan terms for their franchisees. A BCR also gives all lenders regulatory cover, which in this bank regulatory environment, means greater willingness to lend.
“The Bank Credit Report (BCR) has facilitated numerous loans to our franchisees and secured new banking relationships to benefit the entire Papa Murphy’s system. Because the BCR is produced by a third party, objective source, lenders rely on it. Thankfully for us, it communicates all the progress we made as a company and among our franchise units, while placing us head to head with our peers. The BCR has answers to all the questions that a lender wants to ask when assessing the credit risk of the Papa Murphy’s system ~all in one report, saving valuable time for all involved.”
— JAYSON TRIPP, CHIEF DEVELOPMENT OFFICER, PAPA MURPHY’S
Lenders want to see BCR’s as a starting point to create tranches of capital for brands. The BCR is the industry standard for lender/franchisor interaction and communication. The BCR explains your brand’s financial story in banker language, allowing credit departments to better understand loan packages submitted by Franchisees.
FRANdata created the BCR specifically for lenders and its format has been updated by lenders to gather, analyze and provide key insight on the performance history of a franchise.
“THE BEST MONEY I COULD SPEND EVERY YEAR.”
—GREG ESGAR, CFO, MASSAGE ENVY