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A guide to helping you understand and compare hotel business loans online
Are you looking for a hotel business loan?
Running a hotel is exciting and rewarding, however it can be challenging if the financial aspect doesn’t go according to plan. Whether you are planning on opening a new hotel, carrying out some renovations or purchasing an existing hotel, you will need to raise the capital to make this a possibility. We can help you arrange a competitive hotel business loan, from our range of flexible finance providers.
Which hotel business loans are available?
Running a successful hotel can be a lucrative business option, but there are a variety of expenses which you will need to consider. In many situations, owners think about taking out a hotel business loan, as they can provide the essential capital required to remain profitable.
The key to finding the ideal hotel business loan is to establish exactly what the funds will be used for. For example, there are different loans available which could help with purchasing new equipment through asset finance, improving short-term cash flow to obtaining development finance to build a new hotel.
Our lenders can provide everything from commercial property loans and equipment financing, to lines of credit and merchant cash advances. The various forms of finance could provide you with anything from £1,000 to £20,000,000. For smaller amounts a short-term repayment period of less than a year is ideal, although our lenders can spread larger amounts over a number of years to provide an affordable repayment plan.
If you have assets available and a good credit history it will make it much easier to find a flexible, low-cost secured loan. Although, we work with a range of lenders which provide a variety of hotel loans to businesses in every financial situation.
How to find the ideal hotel business loan
There are a variety of hotel business loans available, which can make it difficult to decide which loan is ideal for your hotel. Our finance finder tool will make it easy to compare business loans which suit your specific requirements. Simply enter the amount you need to borrow, how long for and an overview of your financial details, the comparison tool will then present a list of compatible lenders.
To decide which is the ideal hotel business loan, you will need to consider the costs involved and the terms offered. The interest rate and any fees will significantly impact how much the loan is going to cost. Look for the lender which offers the lowest interest rate and competitive fees, for both the arrangement of the loan and duration of the agreement.
Our panel of lenders includes both traditional lenders and more alternative lending streams, so you will find a range of options which suit your specific business and financial situation.
Improve your chances of approval for a hotel business loan
Once you have found a competitive business loan the next step will be to complete the application. A comprehensive application can significantly improve your chances of being approved, so it is worth spending some time ensuring the paperwork is in order.
Develop a comprehensive business plan to show realistically how the hotel is likely to grow. It should show exactly what the loan will be spent on and how the growth of the business will make the repayments affordable. In addition, provide the lender with a complete financial overview of the hotel, including its current and past financial performance, a profit and loss statement, balance sheet and tax returns.
If you have decided that a hotel business loan could help your business, our team are always available to help you find the right finance and can even guide you through the application process. To find out more about our lenders or discuss your application, please contact us today.
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