Are you a hotel owner looking for funding options for your hotel business? If so, the broad range of loans available on the market can make the process of choosing the right loan seem confusing and frustrating. Is it better to take out an asset based loan or an unsecured loan? Should you seek finance from a bank or a non-bank financial institution?
When you don’t apply for the right loan
The trouble with applying a loan that isn’t right for your circumstance is that you are likely to be tuned down. Not only is this a demoralising outcome, you will also be forced to apply for a loan elsewhere with a tarnished credit history, as your records will now show that you have been refused a loan. This makes acquiring finance even harder, and your quest for a loan can go on and on.
In the meantime, the project which you desperately want to get started, whether it is a hotel renovation, the purchase of a new piece of equipment, or new marketing efforts, will just have to wait until funding has been sorted. Worse still, if you need a cash injection to be used as working capital, any significant delays could actually put you out of business.
Traditional bank loans
Many hotel owners apply for traditional bank loans even though these come with rigid repayment structures. Not only are bank loans also difficult to obtain, they will put your business under a lot of financial strain if their strict payment terms are at odds with how your business works.
So what type of funding should you consider for your hotel business?
Alternative financing options can often be a lot more flexible and efficient. For example, United Kapital’s Merchant Cash Advance takes into account the transactions that go through your business both when lending to you and during the repayment process, which means their loan is completely tailored to you.
The way it works is that United Kapital evaluates the debit and credit card transactions that go through your statements, and provides an advance up to one month’s average credit and debit card sales. A pre-agreed percentage of future credit and debit card sales are then taken automatically as repayments until your balance is cleared.
The Merchant Cash Advance is simple and demands little of your time, allowing you to focus on running your hotel while the funding is being handled by United Kapital. The only requirement your business will need to meet is that it must accept credit and debit card transactions regularly.
With an advance of up to £150,000 and a high approval rate, this product is great for small to medium hotels who want to raise the finance to expand their business.