Franchising Lending: Market Analysis and Effectiveness Valuation

Authors
  • Arkhangelskaya K.A.

    Saint Petersburg State University
    St.Petersburg. Russia

Abstract

The article investigates the experience of franchise lending in Russia. The advantages of this particular way of lending are analyzed for banks, lenders and economy on the whole. The subject of the research is the credit product “Business Start”, which is aimed to help young entrepreneurs to open small businesses on the base of franchising model. “Business Start” is the first of its kind on the market of business lending and differs from competitors’ products analyzed in the article, what makes the analysis of the product quite relevant. The efficiency is evaluated for all sides of lending relationships.

Keywords: franchising, bank lending, credit products, interest rate on the loan.