Rent-to-own News - Citibank to provide up to $25 million for ColorTyme dealers

ColorTyme, America’s oldest franchisor of independently owned-and-operated rent-to-own stores, announced today that it has entered into a franchise financing agreement with Citibank’s Business & Commercial Banking Group, a leading provider of commercial loans to small and medium-sized businesses, which will provide up to $25 million in loans to existing and future ColorTyme franchisees.

“Our partnership with Citibank has enabled us to put a program together whereby our franchisees can open new stores now and in the future,” said ColorTyme CEO and President Bob Bloom. “Particularly in today’s difficult environment, we’re fortunate to work with a bank that has remained committed to lending and helping small businesses grow,” he continued.

Citibank’s finance commitment will allow qualified franchise candidates to obtain the financing they need to open their first store, help existing franchisees expand their business with new locations, and provide inventory financing for existing ColorTyme and RimTyme rent-to-own stores.

“This relationship highlights Citibank’s ability to offer small and medium-sized businesses the resources and financing they need to expand,” said Kathleen Gibson, Head of Business & Commercial Banking for Citi’s Central Division. “Our Dallas Business & Commercial Banking Team looks forward to continuing to provide ColorTyme with the full range of expertise, banking solutions and services they may need today, and as they expand nationally and internationally in the future.”

The franchise financing agreement with Citibank will add even more value to the ColorTyme brand for both existing and potential franchisees, according to Jim Deering, ColorTyme’s director of franchise development.

“Franchise financing is a huge benefit to owners, and it’s one of the many things that sets ColorTyme apart from other franchise companies,” Deering said. “The financial strength of our parent company, Rent-A-Center, has allowed ColorTyme to offer financing to our franchisees for more than a decade, and we are proud to continue that tradition.”