Meeting the Funding Needs of a Bed and Breakfast

2015-04-17

Jeffrey Bumbales

When you own a bed and breakfast, you know how to make people feel comfortable and at home, but creating that perfect setting often requires extra funding. Whether it is overall repairs, upgrades to the guestrooms, or hiring more staff, continual investments are necessary to make your dreams of success come true. Growing the number of guests you attract to stay at your business is a solid plan for your future.

In today’s business environment, one of the sure-fire ways to increase profits is to offer more to your guests and keep up with any changing demands. Their word of mouth is often the best form of advertising for new guests to find you.

Seeking a bed and breakfast loan may be the best way to complete those costly upgrades, build an addition, or hire employees required to reach your goals.

 

Top reasons bed and breakfast owners borrow

According to entrepreneur.com, the most basic reason to expand your business are your guests. Basically, success in the future depends on the level of service and comfort you supply your guests today. Improvements often focus on making your bed and breakfast better fit your current and potential customers’ desires. Here are the top needs that require cash:

  • You need to expand what you offer: Perhaps you want to add on extra rooms to your B&B and have the land to do so. You may also want to expand your breakfast menu and maybe that requires kitchen upgrades. Maybe guests want outdoor seating or would appreciate landscaped gardens. Whatever the reason, it could be the key to growing your customer base and your business.
  • Your current space need renovations: If your rooms are dated and dingy, a good way boost guest satisfaction is with clean, modern updates. Beautiful design can impress your guests and make them feel welcomed.
  • Day to day operations: According to about.com, small business owners, like those who run a B&B, sometimes need loans to meet the demands of their daily operations. If your bed and breakfast has a seasonal slump, needs a new roof, or any other financial challenge, you may need temporary funding to cover operating costs, suppliers and payroll until you get back on track.
  • More staff: It takes a lot to keep up with all the needs of your guests. Customer convenience and the quality and speed of service matter. Your customer’s experience, and how they speak about it, is a great method to generate new customers.

 

Bed and Breakfast Loan Solutions

 

Bank Loans

According to Forbes.com, most business owners don’t meet today’s tough lending criteria and those with low credit scores are being forced to seek funding outside of the bank.

Banks have a rigorous loan application and typically require substantial collateral. The lending process takes at least 30 days to get money in hand. Excellent credit and a lengthy business history are often part of the criteria.

 

Alternative Lenders

If flexibility is needed, alternative lenders offer small business loans to bed and breakfast owners and typically have several loan products available that meet the needs of today’s entrepreneur. The simplified application process focuses mostly on the overall health of your business and what you have built.

In other words, your credit score is usually not the primary focus. Alternative lenders also have the flexibility required to tailor loans, and the repayment terms, to meet the needs unique to your business. Applications are typically fast, easy and provide you the money you need quickly.

 

Lines of Credit

With a Line of Credit, you have a specified amount that you are approved to use. This is similar to a credit card, but comes with better interest rates. You only use exactly what you need and your interest is based upon that amount, not the full line of credit available. A Business Line of Credit is typically unsecured by any collateral and does not offer long repayment time-frames.

 

Conclusion

Funding for upgrades and improvements helps your business attract new customers and sets the foundation for future growth. To learn more about business funding solutions contact Credibly today!