Do you want to hire more staff, buy more equipment or renovate your hotel? Is your current financial state not allowing you to do that project? Hotel loans can help you achieve all that. Financial funding from Commercial Real Estate Loan Pros of St. Petersburg can help your hotel grow.
How do you choose the right hotel loan?
First, you should question yourself and ask. Why do I need this hotel loan? What is the motive for the loan? What are the benefits my hotel tends to gain? The motive and benefits will drive you towards the loan you require. Your main aim should not be on interest rates only but also on factors like cost, flexibility, repayment period, and frequency of the payments.
Types of hotel loans
Small Business Administration loans (SBA).
SBA loans offer attractive interest rates and duration to pay back the loan. SBA loans can come in three different forms: SBA 7, SBA/CDC 504, and SBA Microloan. SBA 7 (a) is suitable if you are looking for a first-time loan as it offers a lot of flexibility. SBA/CDC 504 is usually used to buy land or buildings for your hotel. Finally, SBA Microloan will be good for you if you have minor expenses or need working capital. Principal rates may start from 6.5%, with monthly payment periods between 2 to 25 years. In addition, the lender will charge you up to 3% in origination fees and processing time, taking up to 30 days.
- Traditional Bank loans
Loans are offered with low interest rates of 4.5%, a repayment period of between 1 to 5years, and origination fees of up to 30%. However, you will have to make monthly payments and must have good credit ratings. Processing of the loan may take up to 30 days.
- Lines of Credit Loans
Generally, this hotel loan operates in a revolving circuit as you can borrow funds, repay, and then borrow again. Processing of the loan might take a few to 30 days to pay between 3 to 12 months. This loan also has origination fees of up to 30%, and the borrower should have good credit scores.
- Merchant Cash Advance loan
This loan is usually cleared in due time by offering credit card sales. The estimated payment period is usually between 6 to 18 months but can be different according to future sales. Both poor and good credit scores are accepted.
- Business Cash Advance loan
Unlike the merchant cash advance loan, which takes a share of future credit sales, this loan takes a share of overall future sales. Payment is either weekly or daily with deductions from the hotel’s bank account.
- Equipment Financing loans.
Typically, this loan uses collateral to provide more extended payment plans for the hotel, usually between 3 to 5 years. Interest rates and other charges are relatively higher compared to other forms of hotel funding. A client should make monthly payments and have good credit ratings.
- Business Credit Card loans
Like credit cards, this hotel loan has a revolving cycle; the only difference is that you can use it for both purchases and payments. However, with interest rates of up to 28% and origination fees of up to 30%, the borrower must have good credit scores. For any clarification or help on how to get this loan, please contact Commercial Real Estate Loan Pros of St. Petersburg.
There are so many areas or regions where we offer these services with most of them being cities.
However, if you need any of these services, you need to contact us. The list below comprises the areas where we offer these services.