Hotel Business Loan

Get access to revolving funds when you need it most

Ezra Cabrera

October 16, 2021

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Hotel Business Loans

Hotel Business Loans – The Secret to a Successful Hotel Business

Managing a hotel business may seem fancy on the outside, but the truth is that it’s a constant juggling act. Whether it’s a franchise, or a small bed and breakfast, every business needs a dedicated, attentive staff and a meticulous manager.

The goal of every hotel business – or every business, for that matter – is to enhance overall customer experience and gain new clientele along the way. However, the strategies your business implements to achieve this goal have to be cost-effective, limiting the amount of debt and expenses incurred.

Hotel business owners and managers often consult lenders to see how hotel financing can help take their business to the next level.

SMB Compass offers hotel business loans & financing that could help cover the costs of renovating, expanding, or bolstering customer acquisition efforts, just to name a few possibilities. Our trusted advisors will have a discussion with you about how to improve the value of your business’ assets.

SMB Compass is aware that running a hotel is far from glamorous. We make sure that you’ll have the working capital you need 24/7.

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Hotel Financing utilization

4 Innovative Ways to Utilize Hotel Business Financing

It’s not easy to run a hotel, but with SMB Compass, you won’t have to worry about lacking working capital. Here are four ways you can improve your business using hotel business loans:

Create a Mobile-Friendly Website

Did you know that more than 50% of lodge bookings are done online? A business without a website loses tons of potential business opportunities.

But, having a website isn’t enough. Mobile-friendly websites are in high demand, not just in the hotel industry, but in every business industry. Travelers and tourists use their phones to access information and book hotels.

Customers prefer websites that display real-time pricing, room availability, and general hotel information. However, a fully functional, search-engine-optimized, and mobile-friendly website often comes with a high price. You can use hotel financing to cover the costs of creating websites or apps for your hotel.

Advertising and Marketing Campaigns

Advertising and marketing campaigns are an important part of customer acquisition, especially if you’re a newly-built hotel. If your hotel doesn’t have enough funds to invest in creating top-notch advertising and marketing campaigns, hotel financing can help you out.

Upgrade Hotel Equipment

At some point, your business will need to replace or repair your hotel equipment, such as furniture, fixtures, door lock systems, point-of-sale systems, food service and laundry carts, washers and dryers, and beds. Purchasing hotel equipment all at once is not cheap. A hotel business loan will help pay for the needed equipment without disrupting cash flow.

Business Expansion or Renovation

Are you considering renovating your hotel to keep up with emerging trends? Are you looking to add more rooms to accommodate more customers? Or, are you considering opening up a souvenir or gift shop inside your hotel?

Whatever the reason, expansion and renovation often require a substantial amount of cash. A hotel business loan will help you pay for your business’ expansion without draining your bank account.

4 Loan Programs Perfect for Hotel Businesses

SMB Compass takes your hotel business needs seriously. We have financial experts on hand, ready to help answer any question to make sure you find a loan product that fits your needs. The following are the best financing programs for hotels:
Hotel Businesses programes

SBA 7(a) Loans

The Small Business Administration’s most popular loan program is SBA 7(a) loans. This loan is for general purposes, meaning you can use it for almost any business need, such as renovations, equipment purchase, additional working capital, and more. With its flexible rates and terms, 7(a) loans are a great option for any hotelier.

Asset-Based Loans

If your business doesn’t have enough revenue or cash flow to qualify for other forms of business financing, you might want to look into asset-based loans. This type of loan is ideal for businesses with a high value in assets or on their balance sheets.

Businesses can use their assets as collateral to secure financing. The following collateral can be used to secure an asset-based loan:

  • Accounts Receivable
  • Inventory
  • Equipment
  • Intellectual Property
  • Real Estate
  • Marketable Securities

Bridge Loan

Do you need short term funding for your business? Bridge loans are intended to bridge the gap between an acquisition of a new property or other areas your business may need.

Equipment Financing

Buying new equipment for your hotel is expensive. Equipment financing is a loan used to purchase equipment for your hotel business, such as new beds, washers, and dryers, vehicles, or any other equipment your hotel needs. Equipment lease and equipment loan are two different types of equipment financing.

Learn About Your Financing Options

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