The tourist industry has taken a hard hit this past few years with the recession forcing many customers to tighten their belts and restrict discretionary spending. Hotels have had to deal with smaller crowds, shorter seasons and more and more cutbacks. However, with the economy picking up again and customer confidence climbing back, hotels are seeing an upswing in the number of reservations from foreign and domestic travelers. Businesses who cut back on travel for employees are starting to send people back into the field, again boosting the hotel industry.
Many hotels are finding that they are lagging behind this upswing. Because of previous cutbacks, the current situation means that they have fewer employees, offer fewer services in-house and are behind in their updates. In order to get back to full functioning operations, many owners are looking for hotel financing to help them deal with increased payroll, renovations and other costs. However, because the tourist industry is so sensitive to the ups and downs of the national and international economic situation, many of these hotel owners cannot find the proper hotel funding. Despite the recent trend upwards, many banks, credit unions and investors are not helping the smaller businesses find the hotel finance they need. In fact, while banks were never particularly keen on hotel funding to begin with-especially not for smaller more high risk businesses-they have almost completely stopped funding service industry loans including hotel finance.
For hotel owners looking for hotel funding, the application process to banks is usually exhaustive, time consuming and often results in a disappointing outcome. Many begin to despair that it is almost impossible to find hotel finance. Often, as with many seasonal businesses, hotels are looking for hotel funding in order to bridge the gap between two high periods of business. The extra hotel funding would allow them to keep up operations until business picked up for the summer, ski season, foliage festivals etc. For these purposes, many owners go into credit card debt or take out lines of credit with their suppliers because they could not secure the proper hotel finance. This begins a vicious cycle where many owners end up losing their businesses due to debt and their increasing ineligibility for traditional hotel finance.
In order to find hotel funding before it is too late and before the cycle of debt and bad credit can ruin a business, many hotel owners turn to alternative sources of hotel finance. Like many other small business owners, hotels can apply for Alternatives such as merchant cash advances, bad credit loans and unsecured small business loans. These sources of hotel finance are ideal in many ways because the loan or advance gets paid back as business comes in, meaning the owner pays back less in slow seasons and more during high seasons. The proportional pay back method works well for those seeking hotel funding because of the seasonal nature of their business. Owners don’t have to worry about meeting arbitrary deadlines that they may no have the money for in time. These alternative hotel funding offers can be the difference between a bankrupt business and a healthy one.
hotel funding, hotel financing</a
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Author: XavierJain
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