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Include the Credit Report for a Loan

By Faye Mergel
Published: Monday, April 5th, 2010

CULTRM-00000709-001Including the credit report from your bank along with the application form while applying for a loan increases the chances of getting it approved. This is the result of a new survey that has been conducted by FRANdata. This company has experience of over three decades in collating the information of the banking and financial industry which is then analyzed by a team of professionals who come up with the results.

The credit report of the bank helps analyze the performance of the brands franchise since it facilitates an independent analysis. If a lender or a local community is not familiar with the concept of franchising, the bank’s credit report introduces and validates the brand.

In order to provide a complete analysis of any particular brand, the bank’s credit report uses banking terminology that is familiar to all. It also adheres to the standard underwriting topics of the bank and allows comparison of the franchise systems with its peers. The topics of the report include outcomes of SBA lending, unit performance, franchise system, franchisor’s operation risks, financial risks and brand strength. Comparative performance of the sector also forms a part of the report.

As per the survey results, it is almost imperative to include the bank’s credit report in order to get the loan office to take a look at your loan application. This report plays a significant role in getting you the approval. The results displayed by the executives and other franchise systems clearly showed that nearly 80% of the loan application forms that were submitted along with the bank’s credit report got approval with ease.

Darell Johnson, former bank executive and currently the CEO of FRANdata says “With the main franchise loan activity increasingly coming from the community and regional banks, franchise brands have to do all they can to assist franchisees in finding financing”. He also goes on to add, “The successful loan applicant recognizes that credit departments at these lenders have less experience with franchises and at a time when banks are more risk averse. The Bank Credit Report puts the information they need to consider a loan at their fingertips. It is one of the best things a franchise system can do for its franchisees.” 

Jim Sheahan, financial sales’ Vice President, said that every lender they liaise with is provided with the bank credit report. In addition to helping the lender understand the brand better in terms of banking, the report also shows the degree of support offered to people.

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