Fund Your Hotel or Motel with These Loan Options
If you are in the hospitality business, Hotel and Motel loans could help you take your business to the next level or get over a financial hump to maintain operations. There are distinct options for hotel and motel owners; here are a few:
If you have not checked out The Small Business Administration, or SBA, website, you should. Various loan programs are available, including SBA 7 (a) and 504 loans, which work well for borrowers in this industry. The terms and rates of SBA loans are typically appealing to borrowers, though it can take a lot of time and paperwork to get approved.
Need money fast? A short-term loan is paid over time but is usually over a much shorter time frame than a conventional bank loan. These are perfect when you need money in a hurry, as they can be processed fast with cash distributed promptly. The interest rates tend to be higher, so borrow accordingly.
Commercial Real Estate Loans
If you own a hotel, you likely are familiar with commercial real estate loans. They require good credit and sound revenues for approval, typically.
A line of credit can help with operations or if an unanticipated emergency comes up. Once you pay your balance with fees off, you restore the available credit line, making it an excellent resource for business owners. The terms and repayment periods will vary.
Need equipment or supplies for your business? An equipment loan makes sense for a hotel or motel. These types of funding options are for items that you need to operate, like furniture or appliances. Since the equipment serves as collateral, in most cases, approval may be easier for some.
A bridge loan helps out while you wait to be approved for something bigger, later. Bridge loans are usually short-term, alternative lending options that pave the way for future borrowing opportunities.
Depending on what you need the funds for, these different financing options can help hotel and motel owners thrive and grow their businesses. Want to learn more about alternative lending solutions? Talk to the team at Freedom Capital Solutions today!