PORTSMOUTH, N.H. (March 1, 2010) – Direct Capital, a leading nationwide lender to the franchise industry for nearly 20 years, announced today that it will increase its funding commitment to the franchise industry and will continue to build new programs that alleviate the challenges faced by franchisees.
The announcement comes just a few weeks after the International Franchise Association (IFA) Annual Convention where Paul Ringuette, Vice President of Sales for Direct Capital, found an overwhelming need for franchise financing and very few lenders willing to meet that demand. "We knew there was a large and growing gap in franchise capital needs but witnessing it first hand at the IFA convention was eye opening," said Ringuette. "This industry needs major support and we are committed to the effort." The IFA also recently projected a $3 billion deficit between the capital needs of franchisees and the funds banks anticipate making available this year.
In addition to expanding its funding capacity with a multi-million dollar commitment, Direct Capital has also created several new innovative programs designed to alleviate economic factors that create obstacles for franchisees, said Ringuette.
For example, the company just launched a "Snooze Your Payments" plan, which allows franchisees to reduce payments during specific months to stabilize cash flow during their slower season. Direct Capital has also created preapproved working capital lines for a large number of franchise concepts that can be accessed rapidly with limited paperwork. "Times are tough on everyone right now," said Ringuette. "Franchisees are no different. They face slow seasons and they need solutions that help them through that. We're focusing on that every day."
Direct Capital is confident that this strengthened commitment will help major franchise brands meet their development goals by helping franchisees take advantage of prime real estate locations and low construction costs available in today's economy.
About Direct Capital
Established in 1993, Direct Capital is the 8th largest independent equipment leasing and finance company in the United States, according to Monitor. The company provides specialty finance solutions, including capital equipment leasing, and commercial loans and is a member of several leading franchise associations.