In this era of financial uncertainty you may think it’s difficult to raise finance or funding for your hotel. You may have already tried your high street bank but as you would of found they have strict lending criteria including placing security against borrowing such as your business premises or other personal assets.
The issue with many of the banks is that they are still offering this type of lending amongst a new wave of alternative finance lenders who have more suitable options. These options typically offer unsecured lending, flexible repayments in line with your cashflow, no set payback criteria, no APR and so on.
Loans for hotels, where next?
What is this type of loan? It’s called a business cash advance and it allows all of the factors mentioned above. It is truly unsecured which means there is no assets secured against the loan. The loan is indeed flexible. It is flexible because you only make repayments as and when you make a sale on your credit card sales.
For example you take a booking for a stay on your PDQ machine via a debit or credit card transaction. When the sale goes through there is a deduction based on an agreed percentage paid to the lender. Your cash sales are not taken into account. Typically if you turnover more than £3000 on your card machine per month you can qualify.
There is no set payback amount each month unlike a bank loan that requires you to pay back the same amount regardless of whether you have had a busy month or not. This means your repayments are always in line with your cashflow. If you have a quiet month slightly out of season perhaps then you pay back less.
It’s ideal for when you are looking for cashflow finance. Loans for hotels such as commercial property finance for when you are looking to invest in a property for a new build or development project can be funded with other types of finance. We can help with loan values from £3,000 to £300,000. We tend to fund many hotels and restaurants. Our product is a great finance product for the hospitality sector.