Do you own a hotel, motel, or bed & breakfast and is in need of some extra funding to give your business the boost it deserves? Our hotel financing program can help out any hotelier who needs capital quickly, without having to go through the long waiting process typically involved with traditional bank loans. Instead of looking at your credit score, we evaluate the amount of cash flow in your business to determine how much you are eligible for. This is a much stronger indicator of your company’s financial health. We provide anywhere from $10,000 to $2,000,000+ depending on your qualifications, and can get you a hotel loan in just a few days with no collateral. Whether your funding goals are driven by a purchase, a refinance, or construction, our program will give you the extra funds you need to grow your hotel business.
Reputable Hotel Lenders with Industry Experience
Obtaining hotel financing is much different than securing a traditional home mortgage. Many of the same factors need to be considered; however, additional factors such as the real estate market itself, the economy, tourism in the area, and several others are also key considerations. Hotel lenders even consider whether the hotel is a flagged or franchised hotel or a non-flagged independent property before offering financing. If you are in the market to finance hotel, consider all of the factors before signing on the dotted line for your hotel mortgage.
Is Hotel Finance Similar to a Regular Mortgage?
If you are new to the business world or even just purchasing one of your first hotels, you may not be aware of the significant differences between hotel financing and a regular loan or financing option. The goal with securing funding for a hotel is to establish capital in your business. Being that this capital is necessary upfront, many business people have to secure hotel loans to be able to make the purchase outright.
This side of the process is not unlike a typical purchase. The difference comes when hotel lenders evaluate the financial requirements prior to approving a loan. Because you must prove the property’s ability to produce revenue, you must provide additional paperwork and work through additional steps before being approved for a hotel loan. A qualified lender will help you through this process and can assist you much in the same way a lender would with a traditional mortgage.
What Are the Specifics of Hotel Mortgages?
As you look to finance a hotel purchase, you need to be aware of the specific parameters involved with hotel mortgages. A qualified lender will guide you through the process and help you identify all of the specifics you need to successfully obtain hotel funding as quickly and easily as possible.
Depending on the purpose for your hotel loan, whether it is to purchase an existing property, build a new hotel, remodel a dated property, or even to complete hotel refinancing, you’ll need to consider a number of factors. In any case, when looking for hotel finance, you need to be aware of the types of loan products available to you, hotel mortgage rates, stability of the project itself, potential for return on the property, existing hotel equity, and even post-opening costs. Working with a well-established hotel lender can help you take the guesswork out of the process no matter what type of project you are completing.
What Finance Hotel Options Are Available?
Another consideration you’ll need to make when looking for lending options is the type of loans for which your project qualifies. Most borrowers benefit from considering all types of hotel lending options, a process that can be daunting without the assistance of a qualified hotel lending professional. The types of lending options available to most borrowers include:
Conventional Loans – This type of loan is typically offered by a community, regional, or national bank or some non-bank lending agencies. Because conventional loans are not backed by a third party, the credit standards are typically highest for this type of loan and may include higher hotel mortgage rates.
SBA Loan – A small business loan or SBA is offered by the Small Business Administration and typically 75% of the loan is backed by the federal government.
Asset Based Loans – Asset based lines of credit are offered to hotels that can secure financing based on existing assets, such as accounts receivable, existing hotel equity, or established real estate.
Unsecured Credit – This type of loan requires a high level of personal financial aptitude as well as strong cash flow in the business as unsecured credit is not backed by any type of collateral.
Merchant Cash Advance – A merchant cash advance is based on credit card receivables in which the merchant cash provider extends a loan to the hotel based on historical credit card sales.
Seller Financing – In some cases, buyers are able to arrange hotel funding through the hotel seller. This type of loan is negotiated between the buyer and seller.
Whether you are looking for hotel refinancing options or initial purchase hotel loans, the process can be complicated without a supportive and capable hotel lender. We can connect you to that capable lender and make sure that your vision becomes your business.
Let us help you with your hotel mortgage needs.