The UPS Store is making more than $22 million in loans available to aid people interested in buying its franchises as the company tries to add more outlets.
The stores are franchised by Mail Boxes Etc., Inc., and president Stuart Mathis said the company's goal is to add 120 new units this year. He said the loans -- $15 million for new locations -- could help fund about 75 of those stores.
An additional $7.5 million is available for new owners to buy existing stores.
Mathis said the money, provided by Franchise America Finance and The Bancorp Bank, will help solve the credit availability problem that is plaguing some people who are interested in becoming UPS Store franchisees. He said having the funding available gives the company a competitive advantage.
"In this current environment, it's much more difficult," he said of finding funding. "I think it will accelerate sales."
Last year, 86 new franchises were sold. Mathis said turnover in ownership at the 4,300 U.S. stores is about 10 percent a year.
The company is particularly focusing on non-traditional locations, including hotels, college campuses and military bases, though Mathis said the loans are for all locations.
Mathis said he hopes to use all of the money this year, but expects that the funding will renew in subsequent years.
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