Franchise Update Magazine Issue III, 2011 | Page 7

Is Your
franchIse sYstem
credItworthY?
You may think so, but do lenders?
When a bank considers your mortgage application, it
looks at your credit history. When a lender considers your
franchisee’s loan, it looks at your Bank Credit Report.

The Bank Credit Report (BCR)
A Bank Credit Report (BCR) addresses lender’s questions about the
creditworthiness of your franchise system. In the current conservative lending
environment, if you don’t provide information about your system’s performance
history, lenders assume the worst.
Your BCR will provide lenders with an objective, 3rd-party evaluation of the
performance of your system in comparison to your immediate peers and your
industry. The report also provides you with an opportunity to explain
any risk issues that may be present by allowing you to include appropriate
Management Comments if you choose.
In the words of Shelly Sun, CFE, CPA, and CEO of Brightstar Franchising, “with
hundreds of loan requests, the ones who make it easier and ͡