Most hotels are seasonal businesses. They are located in areas that attract huge crowds but only during certain times of the year. The slow seasons can quickly go from inconvenient to downright treacherous, even for extremely successful hotels. Many are forced to lay off employees, fall behind on vendor payments or postpone vital upgrades. Yes, hoteliers are well-aware of seasonality but it’s not always easy to anticipate exactly when revenue will drop or ascertain whether or not they have enough cash to power through a few rough months.
And it’s not like the weather for any season is getting easier to predict. Typical conditions, like a snowy winter, a chilly fall or a clear, hot summer aren’t so typical anymore. In terms of demand, hotels just don’t know what to expect at any given time.
These constant ups-and-downs make it very difficult to meet the increasing standards of vacationing clientele. In order to stay competitive, hotels must have up-to-date TVs, pristine swimming pools, and fresh-looking furniture. People who are planning vacations also make reservations well in advance. With such little cash available during slow periods, hotels risk sending previous guests elsewhere by not marketing to them.
United Capital Source has many years of experience providing Small Business Loans for Hotels, Motels & Lodging. We can provide all types of business lending products. Contact us today for your FREE business funding consultation!
Updates &
Upgrade Beds &
Advertise Your
Open Store/Hotels are perfect candidates for credit card factoring for several reasons. Their guests often pay via debit or credit card, and thanks to reservations, hotels have a good idea of how much revenue they will generate from these transactions in the near future. Your amount is based on projected revenue from debit and credit cards, so a hotelier will know how much money he or she will need over the coming months.
Arguably the biggest advantage of credit card factoring for hotels, however, is simplicity. Hoteliers are notoriously busy and may have trouble remembering to make the fixed, monthly payments associated with traditional business loans. Payments for credit card factoring are deducted automatically, you don’t have to worry about missing a payment. And since flawless cash flow is not a requirement for approval, funding can be distributed when business is slow.
You could use the money to make payroll, market to previous guests, or get rooms ready for an upcoming surge in demand. Payments or interest rates do not increase if you make less sales than expected during a certain period. So, if your slow season lasts a little longer than usual or starts earlier than usual, you’ll just have more time and money to prepare for the busy season.
We also offer numerous business loans suited for unexpectedly busy periods or temporary cash flow gaps. Examples include a business line of credit or short-term working capital loan. Both could cover upgrades, inventory costs or regular business expenses shortly before a large batch of payments come in or right after an emergency repair was taken care of.
A business lines of credit can act as security for occasional dips in revenue, allowing the hotel to maintain day-to-day operations and pay vendors on time. Regardless of the program that is recommended for you, having more money in your pocket all throughout the year ultimately lets you stay on schedule with expenses and avoid poor financial decisions simply because you couldn’t afford to do otherwise. Apply now to see how much you qualify for!
The advice of one successful entrepreneur might differ greatly from the advice of another. One tip every successful entrepreneur will agree on, however, is regularly monitoring your finances. The value of this routine is regurgitated in just about every online article you see about spending or business growth. When you read the same thing over […]
When asked about the first steps towards obtaining a small business loan, most business lenders will agree that you should begin by asking yourself a question: What is the true reason you are thinking about applying? If you intend to make the best use of the borrowed funds, your answer will not be singular. While […]
