Did you know some franchise companies have credit scores with the banks?
Gaining an underlying credit default risk score for a franchise brand in the process.
We all know a bit about personal credit scores through our own credit use for homes, cars and the like.
But the way financial institutions treat companies in this way potentially feels a little bit like the 'dark arts' to many.
In this episode, Darryn enlightens us on;
- The current difficulties with franchise finance,
- How and why banks increase or reduce their appetite for franchise lending,
- How brands can improve their lending profile,
- Why franchise brands often do not give enough information to support franchise lending on their brand,
- Default risk scores for franchise brands - relatively new in Australia, but well-established in the US,
- More brands in Australia have been pleasantly surprised by their scores,
- Key takeaways for a franchise owner accessing finance for their business, and for franchisors looking to grow their network.