When hoteliers want to acquire new facilities, hire staff, take on any type of improvement project or purchase inventory, they usually begin by looking for sources of direct capital for hotel financing.
Using traditional business loans, however, as a source of funding can be a headache. For instance, if you have been designated as high risk from traditional banks, it can make it nearly impossible to be cleared for any of the more conventional programs. Even if you have exemplary credit, you may not want to put up collateral or wait a month or more to gain access to the liquid cash you need. This can be especially true when you need immediate cash in order to get rooms ready for new occupants. The longer a room is not in working order, the longer you could be missing out on some serious revenue. Not to mention if you’re paying mortgage on a property, you’re basically giving money away to own a room that isn’t making anything.
If any of these circumstances apply to you, then you may want to consider a merchant cash advance program, which is essentially an alternative hotel financing tool. More specifically, a cash advance is an unsecured business loan option that is optimized specifically to help maintain cash flow. It generally doesn’t take long to get approved, and you don’t need minimum credit scores or need to put collateral down.
Further, if you have a project you have wanted to invest in but either haven’t had time for the lengthy process of applying for a traditional loan or haven’t wanted to use the cash coming in from your revenue stream, then you could be a good candidate for a cash advance. You can use it to improve your hotel any way you like. Funding typically runs between $1,000 and $1,000,000.
Once the initial advance of usually about 70 percent has been repaid, business owners then become eligible for refinancing, possibly up to 200 percent of the amount they originally received. When the lender gives you liquid cash up front, they are basically purchasing a portion of your future sales. Repayment is taken as a tiny percentage of daily revenue, so that the payments are proportionate with your earnings, and your cash flow is not in danger of being overwhelmed either.
Access to the capital you have been looking to invest in your hotel is much closer than you think. Visit an online hotel financing lender to get more information on submitting your loan application.