Their reluctance to approve loans to small franchisees is due to their perception towards the industry, says Francorp Malaysia president
MALAYSIA’S commercial banks are not giving enough support to the local franchise industry, industry executives say.
“Banks are still reluctant to give out loans, especially to local franchisees. But they have no problems extending loans to large franchisees,” Francorp Malaysia Sdn Bhd president and chief executive officer Affandy Faiz said in an interview with Business Times.
Affandy said their reluctance to approve loans to small franchisees is due to their perception towards the industry.
“Maybe its because the local franchise industry does not take off well enough,” he said, adding that bank officials are still unfamiliar with the franchise business.
Although banks have franchise packages, the loans come with too many conditions, he said.
“This has posed a challenge to local franchisees who have just started their businesses. Surely they don’t have a track record yet, but banks should see the track record of their franchisors,” he said
No comments yet.