LANSDALE, Pa., Sept. 18, 2024 -- Benetrends Financial, a leading provider of funding solutions for entrepreneurs and franchisees, announced today that recent interest rate cuts tied to the Federal Reserve's half-point reduction of the prime rate have created more favorable conditions for small business owners seeking financing. As borrowing costs decrease, Benetrends anticipates an increase in loan volume and franchise purchases due to more accessible and affordable financing options.
Lower Interest Rates Mean More Affordable Franchise Financing
With the Federal Reserve's decision to cut interest rates by half a point, financing tied to the prime rate has become more affordable. This drop in rates further reduces monthly payments, decreases the overall cost of borrowing, and opens up opportunities for aspiring entrepreneurs and multi-unit franchisees alike.
"With this rate drop, financing becomes even more accessible, allowing business owners to pursue their goals without being held back by high borrowing costs," said Reg Byrd, President of SBA & Bank Financing at Benetrends Financial. "We expect to see increased loan volume as lenders become more willing to extend credit in this favorable economic environment."
Franchise Purchases Set to Increase
As loans become more affordable, Benetrends Financial anticipates a surge in franchise purchases. Aspiring business owners will now find it easier to secure financing for their first location, while existing franchisees may be able to expand their operations, adding new locations or territories.
"Lower monthly payments mean higher cash flow for franchisees, making it easier to reinvest in their business and take that next step toward growth," Byrd added.
Flexible Financing Options for Growth
Variable-rate loans will see immediate benefits from the rate cuts, with franchisees experiencing lower monthly payments. This increase in cash flow could make financing for additional locations or territories more feasible. Benetrends Financial continues to offer a range of financing solutions tailored to meet the needs of small business owners, including SBA loans and Rollovers as Business Startups (ROBS), which can further maximize the benefits of the lower interest rates.
Read more at: https://www.wsj.com/livecoverage/fed-interest-rate-cut-inflation-live-09-18-2024
About Benetrends Financial
Benetrends Financial, a leading architect in the franchise funding industry, has been helping entrepreneurs successfully launch their dreams for over 40 years. With a proven track record and a unique suite of innovative funding solutions, Benetrends has been at the forefront of helping entrepreneurs secure the necessary financing to start, run, or grow their businesses. Benetrends is dedicated to providing comprehensive funding solutions, including SBA loans, securities-backed lines of credit, and more, with a focus on speed, efficiency, and flexibility. Whether you're a first-time entrepreneur or an experienced business owner, Benetrends offers personalized guidance through the funding journey, empowering business owners to achieve their dreams.
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