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Running a hotel is a complex and sometimes challenging job. Regardless of whether you're buying an existing hotel, starting a new establishment or looking to give your venue a much-needed makeover, you'll probably need to borrow money to turn the vision you have for your business into reality.
The good news is that there's a huge range of finance options available to suit an equally diverse variety of hotel business needs, so let's take a closer look at how a business loan could help you.
Whether you're starting a new hotel or taking over the reins of an established venue, there are plenty of upfront and ongoing expenses you will need to take into account. These expenses include the following:
This list is just a short sample of some of the costs you'll need to consider when buying and running a pub or hotel. If you need help with any of the above expenses, there are business finance options available to suit your needs. Read on for more details regarding the loans available and the benefits they can offer your business.
100% confidential application
Borrow up to $100,000,000 with terms from 1 to 30 years to fund businesses of all sizes.
Which loan is the right choice for your hotel? Check out the table below for a detailed guide to all of the finance options available:
| Loan type | Loan amount | Pros | Cons |
|---|---|---|---|
| Commercial property loan | Generally up to 60-65% of the purchase price |
|
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| Equipment finance | The cost of the equipment you need to purchase |
|
|
| Business line of credit | $10,000 to $100,000,000 |
|
|
| Business overdraft | $10,000 to $100,000,000 |
|
|
| Business term loan | $5,000 to $500,000 |
|
|
| Unsecured business loan | $1,000 to $250,000 |
|
|
That depends on the following factors:
Are you dreaming of opening your own hotel or pub? If so, remember that starting any kind of new business from scratch is a huge undertaking and one with many traps and pitfalls along the way. It can also be an expensive exercise, and you may be surprised to discover just how quickly all the separate costs involved can add up to a substantial amount.
With this in mind, make sure to include the following expenses in your calculations when planning to open a new hotel or pub:
This is why it's a great idea to develop a comprehensive business plan for your new hotel. This will help you develop a clearer picture of your financial situation and ongoing requirements, allowing you to budget for all potential future expenses that may arise.
If starting a new business from scratch sounds like a daunting proposition, you may decide that you're better off purchasing an existing hotel. After all, if you can find an affordable property in a good location that has a solid customer base, a lot of the hard work will have already been done for you.
However, there are still several expenses you'll need to consider when working out your financial requirements, including the following:
Then there are the other running costs you'll need to consider to effectively manage your business from day to day. These include having enough working capital to manage cash flow, paying all the necessary insurance premiums, paying staff wages and generally keeping your business as clean, inviting and up to date as possible.
If you're in the market for a hotel business loan, it's easy to feel overwhelmed by the sheer range of finance options available and their many different features. To help make it easier to choose the right loan, keep the following factors in mind when weighing up your options:
Preparing a comprehensive application that satisfies all the relevant criteria is the best way to increase the chances of being approved for a loan. Of course, there are a few other things that will help the lender view your application in a more positive light:
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I own a country hotel. I need to do repairs and pay back loan to bank.
Hi Brett,
Thank you for getting in touch with finder.
On this page, you may choose the lender that would help you further on repairing your hotel. You’ll see a table with list of lenders that you may apply for a business loan with. After you compare your options and decide on which lender to apply a loan with, please click n the Go to site/Enquire now button to be redirected to their official page and start your online application.
Please make sure that you’ve read the relevant T&Cs or PDS of the loan products before making a decision and consider whether the product is right for you or contact the lender directly for further info on your business loan application.
I hope this helps.
Please feel free to reach out to us if you have any other enquiries.
Thank you and have a wonderful day!
Cheers,
Jeni