What You Need To Get Hotel Financing
Lenders require a great deal of information from borrowers who apply for hotel financing. By having everything you need in order to obtain approval before taking on this rather lengthy and thorough process, you can expedite the consideration time and have the cash you need as soon as possible so you can begin making repairs and improvements to your business that’ll help launch it into the future. However, if you’ve never undergone this process before, the chances are that you don’t know what kind of information your lenders of choice expect to see alongside your application.
A history of your financial records and your relationship with your bank (or the institution in question) is a must for those applying for hotel financing. Lenders will use this information in order to determine whether or not your business and your skills as a manager are up to snuff and are able to handle the financial responsibilities which such loans innately carry. The information should cover a minimum of three years (preferable more) and show that your business has been able to finish out a large majority of its months without being “in the red” and being unable to pay important expenses.
Next, lenders will want to know a little more about your hotel and how it functions. Specifically, they’ll need to know what kind of hotel you’re looking to finance. The most common options are: full service hotel, limited service hotel or motel, beverage motel, resort or a strata or quarter share. Each of these option features its own unique financial needs, so lenders will need to know this information prior to beginning your loan proposal in order to ensure that they can create the best terms for the opportunity, and that the investment will profitable for everyone involved.
Finally, lenders will want to see a great deal of information on how your business interacts with customers and the surrounding community. Your hotel’s location will play a big part in this area of consideration, as where your business exists can have a huge impact on the amount and type of customers which your hotel attracts. Branding and the range of advertisement are also deciding factors, so providing substantial information on your marketing attempts is a must.
Applying for hotel financing is no walk in the park, but by getting your information in order before approaching your lender of choice, you can ensure you’re making the best impression possible and maximizing your chances at having your proposal accepted as soon as possible.