Merchant Cash Advances » Hotel Business Advance

Hotel Cash Advance Funding

Hotel building stands tall lush green background relaxing getaway.

By Richard Wilson

Last Updated on

Estimated read time: 7 minutes

If you operate a hotel business and need funding to enhance your boutique hotel experience, expand your chain hotel offerings, or improve your motel accommodations, MCashAdvance hotel business advances are the swift solution you’ve been searching for.

We offer hotel business advances ranging from $5,000 to $900,000 to help grow your hotel enterprise. We fund all types of hotel businesses, including boutique hotels, chain hotels, and motels.

Securing financing from banks for hotel businesses can be a lengthy and challenging process, often taking weeks or even months to obtain, with strict approval requirements, extensive paperwork, and a preference for businesses with perfect credit.

An advance from MCashAdvance for hotel companies offers simpler approval, no paperwork or collateral, the possibility of receiving funds within 24 hours or up to 3 days, and accepts poor credit scores with no hard credit check that won’t impact your credit score upon application.

Get a Hotel Loan Alternative Now

MCA Feature Offer Details
MCA Amounts: $5,000 – $900,000
Factor Rate: 1.1 – 1.5
Holdback 10 – 25%
Repay In: 3 – 18 months
Funding Time: 1 – 3 days

Applying is easy, free, and won’t impact your credit score.

Get the hotel financing you need today.

What is a Hotel Cash Advance?

A hotel cash advance is a type of merchant cash advance (MCA) created for hotel businesses, including boutique hotels, chain hotels, and motels.

Your hotel business sells a portion of its revenue to McashAdvance in exchange for an upfront lump sum of funds called a cash advance.

In exchange, we will deduct a small percentage of your daily sales revenue until the advance is fully repaid.

Emergency Funding for Hotel Businesses

In the hotel industry, financial challenges can arise from various needs, ranging from short-term capital requirements to day-to-day operational expenses. A hotel business cash advance offers a quick and flexible financial solution, typically available within 24 hours to 3 days, and can be used for any hotel-related need.

Hotel Financing for Any Purpose

Here are 17 common ways a cash advance can be utilized in your Hotel:

  1. Hotel Property Renovation: Refresh the look and feel of your hotel to make it more appealing to guests.
  2. Hospitality Technology Integration: Modernize booking and management systems for efficiency and convenience.
  3. Hotel Amenity Enhancement: Add or upgrade amenities like pools or gyms to attract more guests.
  4. Energy Efficiency Upgrades: Invest in eco-friendly technologies to make your hotel more sustainable.
  5. Staff Training: Provide comprehensive training to improve service standards in your hotel.
  6. Hotel Marketing Initiatives: Boost visibility and attract more guests through targeted marketing.
  7. Security Enhancements: Improve guest safety with advanced security equipment or personnel.
  8. Accessibility Improvements: Make your hotel more inclusive and accessible to all guests.
  9. Culinary Expansion: Enhance your hotel’s dining options with menu upgrades or kitchen improvements.
  10. Event Space Development: Create or enhance event venues to offer more services and entertainment.
  11. Laundry Facility Upgrades: Modernize laundry services for better efficiency and cleanliness.
  12. Hotel Furniture Upgrades: Invest in new, comfortable furniture or elegant decor to enhance guest rooms and common areas.
  13. Lodging Regulation Compliance: Ensure compliance with safety and regulatory standards, like fire safety.
  14. Guest Transportation Services: Provide shuttle services for a convenient guest experience.
  15. Hotel Website Enhancement: Develop a user-friendly website for easy online booking and improved online presence.
  16. Revenue Management Software: Implement software for optimal pricing strategies and revenue maximization.
  17. Emergency Preparedness: Allocate funds for comprehensive emergency plans and safety measures.
Customer paying for hotel services with credit card at front desk.

Hotel Cash Advance Example

Let’s say you need $25,000 of hotel merchant cash advance to upgrade hotel room appliances for your hotel. If you are approved for $25,000 and receive a funding offer with a factor rate of 1.25, your total repayment amount will be $31,250 (Advance Amount + Fees).

Advance Amount$25,000
Factor Rate1.25
Avg Monthly Credit Card Sales$35,000
Holdback Percentage10%
Daily Credit Card Sales$1,166.67 per day (approx.)
Daily Payment Amount$116.67 per day (approx.)
Repayment Term (in days)Approximately 267 days
Repayment Term (in months)Approximately 8.9 months
Total Repaid$31,250 (Advance Amount + Fees)

Hotel Business Funding Eligibility

To be eligible for funding from MCashAdvance you must meet these 5 criteria:

  1. Your hotel must have been operational for at least 6 months
  2. Your hotel establishment should be generating a minimum of $100,000 per year in revenue
  3. As the hotel business owner, your personal FICO score needs to be 550 or higher
  4. Your hotel must utilize a business checking account
  5. You, as the hotel proprietor, must be over 18 years of age and a U.S. citizen

How to Get a Hotel Advance from MCashAdvance

To get an advance for your hotel business from MCashAdvance, follow these 5 steps:

Step 1: Begin Online Application: Click Apply for an MCA to begin.

Step 2: Fill in Your Details: Provide information about your hotel business and some personal details as the owner of the business.

Step 3: Submit Bank Statements: Upload the last three months’ bank statements of your hotel business.

Step 4: Await Review Process: Our underwriters will review your cash advance application to determine if funding is viable.

Step 5: Receive Offer and Funding: Once you get a funding offer, review it. If it suits your business needs, accept it, sign the MCA agreement and the funds will be deposited into your business account

Get a Hotel Business Advance Now

or learn more about merchant financing

Hotel Funding FAQs

Can hotels get an SBA loan?

Hotels can potentially qualify for SBA loans, with options like the SBA 7(a) Loan, SBA 504 Loan, and SBA Express Loan being available to provide financial support tailored to their specific business needs.

Can hotels get invoice financing loans?

Hotels generally rely on immediate payment from guests and don’t frequently issue invoices in a way that would make them eligible for invoice financing. This financing method is more common in industries with substantial B2B transactions.

Do banks provide loans to hotels?

Banks typically require hotels to have at least two years in operation, a FICO credit score of 680 or higher, three years of cash flow records, and a well-structured business plan outlining fund usage. Meeting these criteria increases the likelihood of banks approving a loan for your hotel. If you can’t meet these standards, alternative lenders like MCashAdvance may offer more accessible eligibility criteria for obtaining financial support for your hotel.

How does hotel equipment financing work?

Hotels can invest in equipment like hotel room furnishings and use the hotel room furnishings as collateral to secure financing. At MCashAdvance, you can obtain hotel room furnishings using our advances without having to use the equipment as collateral.

Can hotels get business lines of credit?

Absolutely, hotels can secure a business line of credit when they meet specific criteria tailored to the hotel industry. Qualifications often encompass having a FICO credit score of 660 or higher, operating as a hotel for at least one year, and consistently generating monthly hotel revenue exceeding $5,000.

How do MCAs support hotels in off-peak seasons?

MCAs provide immediate funds to hotels, which they repay with future room bookings. This is helpful when fewer guests are staying, ensuring the hotel can keep running smoothly.

What requirements must hotels meet for bank loans?

Hotels must prove they earn enough yearly, have a solid credit history, and occasionally need to offer something valuable as security for bank loans.

What factors are crucial when a hotel selects a loan?

Hotels need to consider the loan’s purpose, the amount they need, how it will be repaid, and how the repayment aligns with their income fluctuations throughout the year.

Why do hotels benefit from MCAs regarding repayment?

Since hotels mainly earn through credit card payments from guests, MCAs, which are repaid through these transactions, align well with their revenue stream.

What challenges do hotels face in borrowing for renovations?

Hotels need to carefully calculate the right amount to borrow for renovations, ensuring they don’t overextend financially while upgrading their facilities.

About the Author: