Franchisee- Ideal Customer for Fleet Biz Suite

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(—July 24, 2013)  Plano, Tx—Russ Anderson, the principal and founder of Fleet Biz Suite has had years of credit lending experience in banking and finance.  The irony is that as a traditional banker, he actually recognized the fact that the “non traditional” sources of lending were rife with opportunities.  Franchisees, for example, are an interesting vertical that he cites as a good candidate for what they do.


Firstly, the franchisee has already been through a prerequisite approval process with their franchisor whereby they already meet a financial approval process.  Secondly, this does not ensure that the franchisee is home free by any stretch of the imagination.  Now, the choices with which  a franchisee is confronted  are:  1. Are the ongoing borrowing avenues with the franchisor? 2.  Do they seek outside financing?


As a franchisee, the business probably buys their products and goods from the franchisor.  Financing is also available through the franchisor, but may not be the best route for a franchisee’s future?  Anderson talks about establishing a credit profile in the business and with most franchisors, the credit loans through them are not reported to the credit trade lines i.e. Experian and Equifax.  Dunn and Bradstreet, the industry leader in tracking businesses and their state of financial condition and credit worthiness, can only do so with history of a company or business that demonstrates how they handle credit and its repayment process. 


If a franchisee borrows from their franchisor and the loan is not reported, the franchisee has not helped their credit profile down the road as they are seeking higher loan amounts and as their business may require such lines.  This scenario is analogous to an athlete consuming empty calories as they are preparing for a major competition.  The credit amount that a business or franchisee “consumes” must count and contribute towards that pyramid of establishing a robust balance sheet and income statement. 


Developing cash flow and a tracking metric for loan repayment is commercial lending 101.  The building blocks of establishing greater credit lines for additional credit can occur within 60 days which can make the difference in being liquid and successful or just remaining small and hampered by a credit line that takes them nowhere.  


Fleet Biz Suite’s core business is to build a credit profile for their clients and offer guidance and prudence in accessing credit while working within the financial mechanisms that exist.  Their understanding of traditional lending and “alternative lending” sources, allow them to be creative within a staid lending environment.


For more  credit profile ideas and information, contact  Fleet Biz Suite at:    (800) 248-8817.

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