Nestlé Toll House Café by Chip announced it selected BoeFly, the online marketplace connecting small business borrowers with lenders and a strategic ally of the International Franchise Association (IFA), to assist its franchisees in obtaining bank financing.
“Our goal with partnering with BoeFly is to help ease the pressures on new and existing investors who want to open Nestlé Toll House Café by Chip locations,” says Ziad Dalal, founder and president of Nestlé Toll House Café by Chip. “We believe BoeFly’s quick and useful financing tools will help our franchisees run their businesses more successfully and meet our brand’s high standards of excellence in quality.”
Nearly half (49.2 percent) of the respondents in a recent survey of members of the IFA identified “financing/access to credit” as the top issue of concern to franchise business leaders.
In response to this concern, and bolstered by its success in helping many individual franchisees obtain financing, BoeFly created a portfolio of services for the franchisor market.
Franchisors can offer franchisees access to: a network of lenders through posting of a single loan request on BoeFly’s internet-based loan exchange; assistance in creating an effective loan request; and support managing lender inquiries.
BoeFly uses proprietary matching technology to connect franchisees with lenders whose loan package meets specific lending criteria, increasing franchise revenue by helping franchisees connect with the capital they need to open their businesses.
“Today, even top franchisors face a significant challenge: converting otherwise qualified candidates into franchisees who are interested in growing with the brand, because of the difficulty they have accessing capital,” says Mike Rozman, co-president of BoeFly.
“Franchise lending has been down by as much as 40 percent in the past two years due in part to the inefficiencies in the lending process that have been exposed by the financial crisis. BoeFly eliminates these inefficiencies by connecting franchisees with banks that are ready and willing to lend.”