FranNet's Chris Coleman: Loan Approval Rise Fuels Franchise Ownership Increase in St. Louis Area
Good News for St. Louis Business Owners: Small Bank Approval Rate Jumps 5 Points in Last Year, Big Bank Rate 2 Points
ST. LOUIS, MO - (Marketwire - Jul 19, 2012) - St. Louis area entrepreneurs are opening an increasing number of franchises because banks are approving a higher percentage of business loan applications than in recent years.
"We're seeing more clients in the St. Louis area finance their franchise businesses through unsecured loans, SBA loans and retirement funds," said Chris Coleman, who owns FranNet of St. Louis. "The more franchise owners have access to startup capital, the more jobs they create and the more local economies thrive."
The Biz2Credit Small Business Lending Index, a monthly analysis of 1,000 loan applications by International Franchise Association member Biz2Credit.com, found that loan approval rates from big banks jumped half a percentage point from May (10.6 percent) to June (11.1 percent). The increase also represents a jump of more than 2 percentage points from June 2011, when the approval rate was a dismal 8.9 percent.
The loan approval rate from small banks rose as well, from 45.5 percent in May to 47.5 percent in June -- a full five points higher than the 42.5 percent rate in May 2011.
Coleman is a franchise matchmaker, a consultant who works with corporate workers -- many of whom have recently endured layoffs and buyouts -- and helps them transition to franchise ownership. FranNet uses a refined process to match potential franchise owners with franchise systems that fit their goals, interests and budgets.
FranNet of St. Louis serves the St. Louis Metro area, including St. Louis, Columbia, Jefferson City, Springfield and Branson, Mo.; and Springfield, Bloomington and Carbondale, Ill.
"Experience has shown us that usually, when entrepreneurs can secure startup capital to open franchises, they succeed," Coleman said. "Small business loans have been scarce and we are excited to see the opportunities loans will open up for St. Louis area entrepreneurs."
For more information, visit: www.frannet.com/ccoleman.