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!