If you are an owner of Hotel or Motel and in search of an appropriate for your business loan, you will be faced with many options. It is important to understand the pros and cons of various small business loans. It is very important to find the right source of necessary Motel and Hotel financing. Therefore the best option for the hospitality industry is a small business loan or cash advance. Because of the constant maintenance required in the hotels and motels.
The main reasons why hotels and motels look for financing are maintenance and renovations. Whether you are a hotel chain or a small motel, it’s necessary to update the interior and exterior of your business every year or two. So check your property improvement plan:
1. Do you need to upgrade furniture, bathrooms, televisions or lobby?
2. Do you need to repair the entrance or façade of the hotel or motel?
3. How will renovating of hotel or motel affect the daily cash flow?
4. Can you refinance any outstanding debt?
Hotels and Motels need loans for other reasons as well:
Expansion: Branching out takes planning and capital.
New Services: Conference rooms, restaurants, indoor pools, lounges can improve occupancy rates.
Efficiency: The rising generation is slowly becoming the hospitality industry’s core customer. This means people in the U.S. are tend to book their stays more online. So invest in building websites with fast online booking. And do not forget about free Wi-Fi in the territory of your hotel or motel.
Marketing: Customers frequently decide on hotel stays based on Yelp ratings and Trip Advisor hotel recommendations. Marketing manager will keep a constant eye on these online channels. He/she will alert management to negative reviews and monitor all social media is a common reason to borrow funds in the hospitality industry.
On the one hand, finding loan for your business needs you can come across bank and SBA loans. Yet, please, do not hurry to apply as they typically require good credit rating and a pile of papers, involve collateral, and take months to approve you. However, they have the lowest rates that make this option a good choice for you hotel financing if you are qualified for it.
On the other hand, alternative lenders such as Premier Capital Funding offer Merchant Cash Advances. These programs are designed for cash-flow problems or emergency financing. So these programs are typically used for cash-flow problems or emergency financing. Cash advances don’t require collateral and borrowers with bad credit can still be approved. Mostly financing and payback is based on future credit card sales, working with your business’s cash flow rather than against it.