Hotel Books A Cash Advance
Merchant Cash Advance Hotel Books A Cash Advance
Author: Valerie Mellema
Date posted: 10.10.22

A boutique hotel on the West Coast had always done pretty well. People appreciated its charm and amenities even when they came at a higher cost than chain hotels. Throughout the summer months, it always had a brisk business for holiday and business travelers passing through the area. However, things can change in the blink of an eye. It’s always a good idea to have financial options in case of that. In this case, a merchant cash advance became the saving grace for the hotel and its happy customers.

Dealing with a Downturn

 

Since COVID-19 first became an issue, more people have been staying home and avoiding public spaces. Lots of employees who normally went to the office or on trips no longer were doing that as frequently. This led to a downturn that quickly affected the hotel, even though it was a favorite in the state.

 

As time went on, the continued lack of guests started to cause problems. It wasn’t very long until there were cashflow problems. Since the owner had no intention of closing up shop, another tactic would be needed to weather the storm.

Hotel Books A Cash Advance

The Amount Needed to Rectify the Situation

 

Recognizing the necessity for assistance prompted a thorough examination of the financial aspect. The owner had to assess the required amount of money to tide over the period until bookings rebounded. Given the uncertain economic conditions, estimating figures proved more challenging than usual.

Having mortgage obligations and various overhead expenses, the owner concluded that around $50,000 would suffice to maintain operations. He initiated the process by discussing funding choices with his bank.

 

Selecting an Appropriate Financing Option

 

A traditional business loan turned out to be unlikely. His bank was hesitant due to his less-than-perfect credit. Plus, at the time, there was a great deal of uneasiness surrounding the hotel sector. It was a blow to be told no, but the owner wanted to find out what other options might be available.

The Benefits of a Merchant Cash Advance

 

The merchant cash advance stood out as the ideal choice for several reasons. Firstly, it doesn’t demand a flawless credit score. Moreover, it provides swift access to funds, a crucial factor in this scenario. Additionally, it lacks a fixed payment amount, enabling the owner to pay more during prosperous times and less during sluggish periods.

In contrast to traditional loans, which might require a week or more to secure, numerous merchant cash advances offer funding within a day or two. This rapid availability proves immensely advantageous when urgent financial needs arise.

 

How Did Things End Up?

 

Fortunately, the hotel persevered during sluggish periods thanks to the support of the merchant cash advance. Adapting payments according to bookings enabled them to sustain operations until the influx of guests returned. Overall, this financing likely enabled the hotel to maintain its functioning.

Presently, the situation is positive, with increased footfall. The advance has been fully settled, and it appears that operations will resume as they did prior to the downturn. The owner takes satisfaction in the abundance of business financing choices available, even for individuals with less-than-optimal credit.

Hotel Books A Cash Advance
About The Author | Valerie Mellema

Valerie has over 16 years of experience as a professional writer of blogs, eBooks, articles and press releases, with a focus on finance and alternative lending. Valerie resides with her family in Texas and is passionate about her horses.

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