Specializing In Small Business Loans For Hotels, Motels & Lodging
Apply now! It’s quick, easy and free.
How Do Business Loans For Hotels & Motels Work?
Each of the products listed above can suit a different type of expense or cash flow problem. For example, hotels often face the dilemma of preparing for the busy season during the slow season. They can upgrade their furniture and amenities and launch advertising campaigns while potential guests are planning upcoming trips. Two logical solutions for seasonal issues are a Merchant Cash Advance and a Business Line of Credit.
​
A Merchant Cash Advance is particularly appropriate for hotels because most of their guests pay via credit card and make reservations ahead of time. This gives hotels a reasonably clear picture of how much revenue from credit card sales they’ll generate in the coming months. The borrowing amount and cost for a Merchant Cash Advance are based on previous and future credit card sales. You can get approved when business is slow, make your necessary investments, and not have to worry about making substantial payments until the busy season begins.
​
A Business Line of Credit, on the other hand, is best suited for hotels that are always dealing with sudden expenses. Maybe some guests have canceled their reservations out of nowhere. Perhaps one of your facilities needs repairs, and you’ve just purchased a new order of retail inventory. If these things happen to your business quite frequently, a Business Line of Credit might be the perfect solution. It’s designed for short-term expenses since you’re supposed to pay off the full balance as quickly as possible. And once you pay back what you’ve borrowed, that money becomes available again. To clarify, you don’t have to continuously apply for funding every time you need extra cash to keep your business running.
Who Qualifies For Hotels & Lodging?
Approved businesses generally met the following criteria: