A relief for franchises. It thus considers the Asociacion Espanola de Franquiciadores delinquencies of new law which has just entered into force. It’s one law more than required, since, according to recent data provided by the Bank of Spain, the defaults default rate stood at 4.79%, reaching the figure of 90,000 million euros. Even the experts forecast indicates that it could be between 7% and 9% during the second half of this year, explains Eduardo Abadia, its Manager. In general, companies and franchises are satisfied with the law, but not with deadlines, and now need to see that they are really met that have been imposed, especially by large companies which are more slow in making payments, to 90, 120 and even 180 days now. Moreover, the AEF believes that if it had been launched before franchises would have suffered less. It was time to launch a law of these characteristics, that allow to the companies shorten the billing deadlines. However, ideally would have been that this measure was effective immediately after its entry into force, and not that the deadlines are shortening gradually, to allow them to definitively set out in 2013, when companies will be forced to pay in 30 days within a period of 60 days and public administrations.
Logically, with this reduction in payments, all companies leave clearly benefited, but especially small and medium, including franchise chains, added Abbey. Regarding the shortening of deadlines on payments the AEF believes that it will be helpful for the franchises. Shorten deadlines will mean that liquidity problems may be overcome, which today are causing that many businesses are closing. If companies have circulating, may obviously face with greater guarantees difficult periods, he says. When assessing the tightening of the criteria for funding in the entities of credit for the registration of doubtful loans of this new Act of delinquency this organization believes that the franchise lost. If already in 2009, the granting of loans to SMEs decreased by 26% by financial institutions, if above harden those conditions the only thing that will be achieved is further worsening the situation. A problem that affects the majority of the companies, but much more to the franchise, since, to not get financing, they are losing candidates to franchisee and are therefore, slowing its growth, ends Eduardo Abadia. For more information: press contact: Mirian Lopez Nuria Coronado Tel.