Much like other industries around the world, the hospitality industry has been hit hard by the recent pandemic. Hotel owners have found themselves with empty rooms and slowly emptying cash reserves as they keep up with payroll and mortgage payments. While the Federal Reserve is working to remedy the situation, you should look for other financing options for your hotel.

By finding different hotel financing options available to you, you can prepare and protect your business in these uncertain times. As the world adapts to the new normal, expect to see an uptick in bookings in the coming months.

Be ready for this gradual return of travelers and local tourists in 2021!

How to Get Hotel Financing & Equipment Financing

Several lenders are actively offering their services, but it’s a matter of learning how to take advantage of these financial products and finding the best offer and equipment financing company for you.

Here are a few options available to you and how to apply for them:

Ask to Modify Your Loan Terms

Given the current situation, a direct and honest approach will be useful. If you have an active loan, communicate your current financial situation to your lender with your business attorney and accountant present.

Ask your lender to modify your existing loan terms or request payment deferments to reduce some of the pressure.

It would be best if you prepared to adopt cost-cutting measures for your operations as well, as they might demand concessions for the changes to your contract.

Look into the Requirements for an SBA Loan or Stimulus Aid

The U.S. Small Business Administration (SBA) has an economic injury disaster loan for business owners looking for suitable financing options. Developed with the economic impact of COVID-19 in mind, these loan options offer hotel owners the support they need as they recover from their recent revenue loss.

Each state has its own version of this loan plan; contact your local representative to determine how to apply for one.

Look for Alternative Financing

Unfortunately, many businesses do not meet the requirements for an SBA loan, or the aid runs out too quickly before everyone gets what they need for their business to survive.

When this happens, look to Regents Capital for alternative funding options, like our hotel financing options. Whether you have existing loans or not, you should consider seeking out better loan options to fund your business continuity plans.

We offer several financing and loan options to hotel owners, including a business line of credit, a working capital loan, and equipment financing programs.

Find out which financing program offers the most advantage for your business without causing long-term problems to your revenue flow.

Bring in a Partner

The recent pandemic has upended several businesses, especially those in the hospitality industry. If you foresee challenges in the coming months, you might want to bring in a partner.

The money your potential partner will bring into the venture can help you manage operating costs, including payroll, supplies, and equipment acquisitions.

Plus, you have the ability to decide how large their percentage is as you negotiate with them, allowing you to retain majority control over your business.

Who to Approach for Hotel Financing

No one could have prepared themselves for the socio-economic impact of COVID-19 and 2020, but that doesn’t mean you have to close your doors permanently!

As you adopt and implement new health and safety protocols, you will need funding to keep your operations running smoothly, and pivot when needed. Regents Capital Corporation is your financial partner during these trying times and looks forward to working with you to help you succeed with our many flexible hotel financing options!

Contact our team to learn more about your hotel financing options!

The coronavirus pandemic has been a learning experience for many business owners. For instance, never has it been more pronounced that flexibility, mobility of operations, and the ability to react to unprecedented events and make wise business decisions fast are crucial for businesses to ride the tide when a crisis washes over their industry.

Gyms and health and fitness establishments were among the businesses most severely affected by the pandemic. As companies that relied a lot on walk-ins and members using on-site facilities for revenues, gyms saw sharp declines in capital. Many were forced to close down permanently.

Unfortunately for some gym owners, closing their doors did not end their financial turmoil because they were still in the middle of paying off the equipment they purchased through bank loans and investor equity. Gyms that opted for equipment leasing fared much better in comparison.

The Benefits of Leasing Gym Equipment

The situation above has highlighted the importance of gym equipment leasing, especially for independent business owners who don’t have financial support from a franchisor. As the coronavirus pandemic has demonstrated, assets in the form of specialized equipment are difficult to liquidate.

Businesses not saddled with the long-term responsibilities of equipment ownership (e.g., 5-year payment plans, maintenance, and repair expenses) had the advantage of decommissioning equipment with minimal financial losses.

Here are some other benefits of leasing gym equipment that are proving to be extra useful during this pandemic:

• Your capital is not tied up to your equipment. When you buy any equipment, you’re effectively signing off a percentage of your expected monthly revenue to their repayment. Renting gym equipment significantly reduces that monthly bill. The business has to pay only for as long as the equipment is needed, or until the lease contract expires.
• If your monthly membership reaches substantial numbers, it can easily cover the cost of your monthly lease.
• Rent-to-own schemes are available, and these arrangements typically spread the cost of acquisition over a longer period. Essentially, you pay less each month but will gain ownership of the equipment at a much later date. This is not a loss since the cost-benefits of gym equipment do not come from ownership but from utilization.
• Interest rates for leasing are often fixed and unaffected by economic upheavals (unlike financing contracts for equipment acquisition with variable interest).
• You have an opportunity to buy equipment at discounted prices. Of course, these pieces of equipment are unlikely the newest models on the market. Still, you could be first in line to purchase well-maintained equipment that customers don’t mind if they’re not brand-new (e.g., weights, bench presses).
• It’s easier and more affordable to upgrade to new equipment when you’re leasing. You can simply not renew your current contract and ask for a new lease agreement for more modern gym equipment.

Leasing does not guarantee that a business will experience zero financial fallout in events like the current pandemic. It can, however, soften the blow. If ownership is your long-term goal, you can reduce your gym’s financial liability by leasing the machines and equipment with technologies that advance rapidly (e.g., elliptical machines and treadmills).

Regents Capital Is Here for Gyms in Tough Times

Our founders at Regents Capital have been providing equipment financing advice and solutions for decades. Which means we can advise you on your leasing plans and needs!

All entrepreneurs have heard of the grim consensus: more than half of all businesses fail during the first year. Even if we acknowledge the more accurate estimates (about 20% fail within the first two years, according to the Bureau of Labor Statistics), the fact remains that the risk for failure is high for startups and new businesses.

When a business urgently needs funds to pay suppliers and overhead costs, and they aren’t generating enough money yet on their own, owners may have to apply for a working capital loan.

Banks: The Common Choice for Business Loans

Banks may be the first place people consider when they need working capital loans. It makes sense: banks have more reserves and can easily finance a considerable sum for a business if it grants its application.

Unfortunately, this privilege comes with many strings. Bank financing has several pain points, which many business owners don’t want to deal with, or maybe do not even know about.

The Downsides to Bank Loans

We have talked to many entrepreneurs and companies in our years of providing business financing solutions, and many of them have shared their woes regarding bank loans. The following are some of the reasons they opted to seek financing from Regents Capital Corporation instead.

1. It’s Difficult for Many to Qualify for Business Loans

Banks look at the viability of a business and only grant loans to those with a track record of profitability. If they’re not looking at whether a business can pay back what it borrowed, they’re looking at the collateral.

2. Banks Ask for Interest Rates That Are Too High

When utilizing a bank loan, borrowers will be saddled with high-interest rates that practically offset the funding they receive. In many cases, businesses get approved for loans that are insufficient for their needs. Apart from working hard to earn enough for their monthly loan payments, business owners need to find funding for expenses they can’t cover with their loan.

3. Bank Loans Can Have Regrettable Covenants

Many entrepreneurs sign loan agreements without fully understanding the contents, especially covenant clauses. This has led to many unfortunate outcomes, like being forced to use their own homes as collateral through a second or third mortgage, or giving banks the right to claim payments from spouses’ discretionary incomes if the business doesn’t have enough cash flow to support the loan.

Choose a Working Capital Lender Who Will Help You Find the Best Loan for Your Business

Working capital loans are useful for short-term financing needs. However, if circumstances arise that make your business lose steam, these loans can become a burden.

You can avoid the trouble that comes with working capital loans from big banks by applying through non-bank financial institutions instead. Here at Regents Capital Corporation, we can offer low, fixed interest rates, higher ROA opportunities, and help you preserve liquidity and lines of credit.

Explore the financing solutions available to you at Regents Capital Corporation – inquire today.

The cost of acquiring brand-new medical equipment is often too great for medical institutions to shoulder, even with financing options for direct purchases. Fortunately, there is a sound alternative for small hospitals and practices that need medical equipment but have limited capital resources and cannot afford to buy them: healthcare equipment leasing.

Buying equipment offers benefits like warranty privileges, post-sales services, access to new technology, and insurance claims perks. But while it is understandable for an institution to aim for equipment ownership, there are situations when renting is the wiser choice.

Here are a few of the times when renting might just benefit medical practices and hospitals more:

When Hospitals Want to Raise the Quality of Their Healthcare Services with New Equipment but Have a Limited Budget

Hospitals are duty-bound to provide the best possible services to their patients. Part of that responsibility is to obtain modern, high-quality, and high-performing medical equipment.

The accuracy of diagnostic tests, timely discovery of results, and efficacy of the treatment are highly dependent on the reliability of medical tools and equipment, after all. If hospital revenues are insufficient and financing is still an expensive option, leasing is the best answer.

When Hospitals Need to Modernize & Take Advantage of the Latest Medical Equipment Technology While Keeping Costs Low

The upfront costs for medical equipment leasing are significantly less than the lump sum payment required for new equipment acquisitions. Monthly rental fees are also lower than loan repayment rates for direct-purchase medical equipment financing.

Moreover, renting saves practices and small hospitals from the double burden of paying for the maintenance and other scheduled services while paying off the equipment itself. Leasing is, therefore, more feasible if hospitals need to manage their cash flows and allocate liquid resources over a broad scope of needs (e.g., utilities, salaries, supplies, and operational costs).

When Hospitals Want to Protect Their Financial Health from Potential Losses by Upgrading Old & Obsolete Medical Equipment

Medical technology evolves, and its pace keeps getting faster. A brand-new piece of equipment today could be considered outdated in just two or three years. If a hospital buys it, the institution may be forced to maximize and keep using the equipment even though newer and more efficient versions are available, which, in effect, can also limit the medical personnel’s ability to provide top-notch healthcare services.

However, when your leased equipment begins to deteriorate or if new technology becomes available, hospitals can switch to newer equipment without suffering massive financial losses through their medical equipment leasing.

When Hospitals Need the Flexibility to Grow & Improve Their Practice & Their Medical Equipment Over Time

The affordability of leasing equipment and paying only for the duration of their use makes it easier for hospitals to scale and upgrade according to their need and financial capacity. This can help bottom lines, clients care, and credit availability all while helping practices grow and succeed.

When Hospitals Aim to Own Medical Equipment at a More Affordable or Staggered Payment Plan

This is one of the perks that lessors offer to customers in the medical field and a benefit that medical institutions can take advantage of. There are diagnostic and testing equipment, for example, with mature technologies or are ingrained in standardized workflows that it is unlikely for hospitals to change them soon.

Once the terms of the lease are fulfilled (e.g., the institution has rented the equipment for x number of years without violating agreement rules), the hospital can gain full ownership and reap the returns on their investment.

Regents Capital is Here for Your Medical Equipment Needs

These scenarios are all good reasons to lease medical equipment instead of purchasing them. If you need more information to support your medical practices’ financial decision on leasing or owning, Regents Capital would be happy to help!

Get in touch with our team and find out how our services can benefit your institution today!

In the last few months, consumer behavior has changed to adapt to the new normal. According to reports, global e-commerce has grown by nearly 20%. Although this is good news for online retailers, it also presents a new set of challenges.

As demand continues to grow, business owners are faced with the task of keeping up. It can be difficult for those who don’t have the resources. But finding the capital to invest in new equipment, more manpower, and other solutions is a problem in itself.

Discover how a financing plan can help you fulfill your logistics needs without creating additional expenses for your business.

What is Capital Equipment Financing in Logistics?

Capital financing in logistics is often concerned with equipment. Business owners choose to get equipment financing to acquire the capital necessary to purchase new equipment when new needs arise in their industry – like a move to online orders and delivery. The equipment then becomes the collateral for the loan. And you can freely access and use the equipment as long as you keep up with the loan payments.

What Are Growth Opportunities?

Capital equipment financing has become popular because of the advantages it offers, such as:

Increase Working Capital

With a financial plan in place, you reduce upfront costs for new equipment. It allows you to increase your working capital and redirect it to other operating expenses or income-generating activities. Alternatively, you can use it to compensate for cash flow shortages or other emergency expenses.

Utilize New Equipment

Take advantage of the latest technology available. One of the reasons businesses hesitate to upgrade their technology is the sheer cost. When you purchase new equipment, you’ll likely hold off spending on other essential aspects of your business. With an equipment financing plan, you don’t have to empty your current operations budget to acquire the piece of equipment.

Enjoy Tax Benefits

In capital equipment financing, the payments you make to your lender are divided into two categories. These are the principal and the interest. The latter can be tax-deductible. Also, you have the option to file the entire payment as a business expense, allowing you to deduct your lease payments from your annual tax reports.

Free Up Lines of Credit

Instead of applying for loans to fund new purchases, you can use equipment financing plans. Doing so frees up your credit lines for other concerns. If you run into a working capital shortage, you have credit lines available to apply for a business loan. An equipment financing plan helps you solve the problem without affecting other areas of your business.

Regents Capital: Your Equipment Financing Partner

Industry experts agree that demand is growing for better logistics and supply chain management in these uncertain times. Preparing for it by acquiring the necessary financing plans helps you create growth opportunities for your business.

Regents Capital Corporation can be your commercial equipment financing partner in getting your business ready for expansion.

Talk to our team to find out more about our financing products.

The COVID-19 pandemic forced governments to establish community lockdowns, which stalled economies and halted the flow of people and goods. These travel restrictions and stay-at-home orders have left many businesses counting costs as their sales dwindled because of the lack of customers.

Still, some businesses remain immune to the virus, and others are even uniquely profiting from the COVID-19 quarantine. Not surprisingly, food businesses are among the brands that saw an exceptional sales boost during the pandemic.

Below are some food brands that continue to thrive in this situation.

1. DoorDash

Food delivery services became the lifeline of many consumers during the lockdown since they can’t go out to dine or buy their groceries. Grubhub and Uber Eats each had a spike in their sales, but DoorDash saw a much bigger growth than its competitors. DoorDash scored 45 percent of third-party delivery orders, followed by Uber Eats and Grubhub at 28 percent and 17 percent, respectively.

Because of its growth during the pandemic, DoorDash managed to raise an additional $400 million in equity financing. It can help the brand future-proof the business and ensure its success even after the coronavirus.

2. Domino’s

A Bloomberg article revealed that old restaurant chains are seeing a revival, thanks to quarantined consumers. Revived food chains include pizza brands, such as Domino’s.

Domino’s has long been known for innovating its pizza delivery service, so it’s no surprise that the brand played to this strength when the pandemic hit. The chain’s fast, reliable, and contactless delivery service, along with the massive U.S. pizza consumption during the pandemic, gave Domino’s higher-than-expected earnings during Q2.

Papa John’s, a long-time rival of Domino’s, also saw a surge in sales.

3. Wingstop

Chicken wing chains were also revived, along with pizza restaurants. Wingstop, which has over 1,400 locations across the country, focused on improving its online ordering and delivery functions to fit the demands of the new normal. As such, the brand’s systemwide sales jumped by 37% to $509 million in the second quarter.

Wingstop expects to open 120 to 123 new locations within the year, a strong proof of their growth despite the outbreak.

4. HelloFresh

Meal kit companies HelloFresh and Blue Apron experienced sales spikes. However, HelloFresh’s gains are much bigger than Blue Apron’s, which were described as “meager at best” by The Motley Fool.

Apart from the quarantine, HelloFresh’s growth can be attributed to consumers’ increasing demand for healthier but convenient food options. The coronavirus has forced people to be more conscious of their eating habits. Many consumers now prefer food items with high nutritional value but are still affordable and accessible.

Luckily, the business model of HelloFresh addressed this market gap perfectly, which led to its rapid growth in 2020.

5. Campbell

Finally, Campbell is another familiar brand that thrived amid a widespread public health crisis. The demand for ready-to-eat food products increased during the pandemic, which spelled good news for the decades-old soup brand. As such, Campbell reported a 35 percent rise in U.S. soup sales from February to April.

People are also looking for nostalgic brands and comfort food items during these trying times, contributing to Campbell’s growth.

Ultimately, the key to overcoming the challenges of COVID-19 is to analyze the changes it brought to consumer behavior. Then, determine how to address these changes best using your value proposition. Make the necessary adjustments, whether offering delivery services or integrating new technologies into your business model.

Commercial Equipment Financing Firm

Regents Capital is your financing partner, not just your provider, in securing commercial equipment, including foodservice and restaurant equipment and software. We help you overcome financial challenges when raising and acquiring capital for your equipment requirements during the economic recession.

View our videos, browse our site, or send us an email to learn more about our services.