The answer is more business owners than you think. Hotel business funding via alternative lenders has steadily been growing for the last five years. Since the economic melt down more and more hotel owners have obtained financing as banks have become much more stingy with their money. Companies like ours, Small Business Funding, have had an influx of queries from hotel owners especially those in seasonal locations.
Hotel business funding from alternative lenders is a process that is much more hassle free than going to a bank. Banks will request a load of documentation, P/L’s, three years of tax returns, contracts, leases, and much more. This process only requires (for an approval) 3 months of bank statements and 3 months of merchant statements. Within 24 hours you can get an approval from a lender. They will request a few more pieces of documentation and if all is good funding can take place within 5 days.
Hotel business funding is used for many things including maintenance, upgrades, expansion, renovations, new staff hires, payroll, etc…. A lot of hotel owners get financing right before a busy time of the season for special parties or events. Commercial uses from convention bookings often require capital infusions to help support the added demands on cash flow. Cash flow is a major issue with the hotel business. Again, if its a location that has a lot of seasonality there will be times when bookings are down but the bills just keep coming in. Employee layoffs when necessary help with cash flow but rarely makes a dent. This hotel business funding mechanism from alternative lenders allows a hotel owner the peace of mind to pick up the phone and request a quick $30,000 by next week. When they have a relationship with a lender they can even get it that same day!