The Lack Of Franchise Lending Is Still Rearing It’s Ugly Head

Ugly. Head.

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Once in awhile, I receive an email or two from a loyal reader of this blog suggesting that I’m being rather negative, when it comes to my writing.

I think that I’m a realist. I think I report the facts. I think my posts and comments are reality-based.

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Would you rather that I spin things?

Maybe I should start every post I write with, “Franchising is the greatest business model ever invented. You just can’t lose! Banks love the model, and it’s easy to get a loan! Almost anybody can succeed as a franchise owner!”

Yaddadedo, Yaddadedee, Blahbity Blahbity Blah.

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From The New York Times;

“The big national companies that dominated franchise lending before the 2008 collapse have stopped or reduced financing. The remaining lenders — often local banks — have been more restrictive in their credit underwriting, and they have been demanding more collateral (like home equity), more cash liquidity, more experience in the industry and outside sources of income, like rental income or a working spouse.” Read

• So, was I being negative in March of this year, when I was suggesting that banks just are not loaning money, and I was asking for their help? Look

• How about when I reported (in 2008) about the problems that McDonald’s franchisees were having getting their new latte machines financed? Read this

• Here’s a post from 2009. It’s titled, “OPEN FORUM BY American Express website.?”

• I was also interviewed about “The State of Franchising In The Credit-Crunched US,” last year. Read what I said.  

Here’s my question;  

Do you think that there’s a problem with banks not lending money for franchise business start-ups? 

Or, am I being negative?