{"id":1146,"date":"2009-07-15T22:27:16","date_gmt":"2009-07-15T22:27:16","guid":{"rendered":"https:\/\/expandsmtest.com\/franchiseking\/if-cit-goes-down-franchising-will-suffer\/"},"modified":"2016-12-04T01:41:46","modified_gmt":"2016-12-04T01:41:46","slug":"if-cit-goes-down-franchising-will-suffer","status":"publish","type":"post","link":"https:\/\/www.thefranchiseking.com\/if-cit-goes-down-franchising-will-suffer","title":{"rendered":"Warning! If CIT Goes Down, Franchising Will Suffer"},"content":{"rendered":"

\"Stressed\"<\/a> <\/p>\n


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{ Bill Horton, a prospective franchise owner, freaks out while watching CNBC describe CIT''s $ troubles}<\/em><\/p>\n<\/p>\n

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CIT <\/strong>does a lot of franchise loans. Let me repeat;<\/em><\/p>\n

CIT does a lot of franchise loans. And they may be in trouble.
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Many have speculated that a collapse of this overextended lender could
\naffect borrowing for businesses across the nation. At special risk, a
\nWashington trade group said, are franchised businesses, such as
\nrestaurants and fitness clubs, for which CIT has been among the largest
\noriginators of loans. <\/strong>\n<\/p>\n

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\nSo now what? What if CIT hits the fail button<\/span><\/strong>? <\/p>\n

The International Franchise Association is stepping in to put some heat on lawmakers. According to a story over at Cleveland.com;<\/p>\n

"The International Franchise Association this week urged President
\nBarack Obama and U.S. Treasury Secretary Timothy Geithner to keep CIT
\nsolvent with bailout money, whatever the cost. As other lenders cut
\nback on small business lending over the past 18 months, owners of
\nfranchised businesses have fewer options for operating capital, the
\ngroup said. Business launches suffer, too, in times of tight credit."<\/em><\/p>\n

Business launches suffer. Oh yes they do. It's been tough enough to get a small business loan these days to begin with, and if CIT<\/strong> fails, the other lenders will continue their start-up paranoia, and stagnancy will invade the franchise industry. {Again}<\/em><\/p>\n

The above worst case scenario may not happen, but it may be time for all of us in the franchise industry to put our collective heads together, and help CIT, somehow.<\/p>\n

C'mon. You've never heard of a bank stimulus package?<\/p>\n<\/p>\n

What about this, President Obama?
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Update! <\/a>{Not a good one}
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You may want to subscribe to this blog.<\/strong><\/p>\n


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