Banks and Leasing Companies
In the business of extending credit, being right can be lucrative, being wrong can be costly, being unaware can be devastating. Being regularly updated is being smart.
Whether you extend credit to franchisors, franchisees, or both, you have a risk tolerance that helps you determine whether a potential relationship is acceptable to you. But how do you find the best potential relationships? There are thousands of franchisors and hundreds of thousands of franchisees.
Now that you selected them how do you get them to select you? Presenting a package of information about them that demonstrates your understanding of their needs and their competitive positioning will help you meet their criteria as well. And that will improve your closure rate.
With capital at risk to a franchisor or franchisee, you do a good job of tracking the changing risk at the borrower level. But what about the broader risk associated with the franchise system as a whole and its competitive position within its sector? Should you increase or decrease your exposure to a particular franchise system? Access to this type of information and your internal resource constraints often inhibit a fuller assessment of total borrower risk. To stay current with changing risk factors, FRANdata has the information and products that can assist you in understanding the risks, including risk assessment products that can be ordered on one or many franchise systems and ordered one at a time or on a portfolio basis.