If you plan on opening or purchasing a bed and breakfast, hotel or guest house, it is vital to weigh up the potential risks you will have to deal with, including seasonal demand, competition and the economy. The lender you go to for finance will certainly consider all of these factors and take them into account, not only when deciding whether or not to lend to you but also when deciding on the rate. Naturally, if there is a higher risk it will cost more to get the funds you need. If you want to lend at the lowest rate possible, you need to show you have planned effectively and will be able to minimise risks.
When considering applications for finance, lenders will consider both the proposition they are presented with and the individuals behind it. It is important to have a detailed plan to present, explaining exactly what your idea entails and how you plan to be successful. You also need to convince them that they are right to give you their backing. Even if the proposition is impressive and there is high potential for a profitable business, lenders may choose not to offer finance if they are not certain that the individuals can implement their plan.
Previous experience in the hospitality industry can be a fantastic bonus when applying for finance, regardless of the role you have worked in. Managerial skills are particularly prized by lenders. Even if you are new to the sector, you can impress lenders by showing them your knowledge of the wider market, including the trends in the industry you have observed and articles in trade publications you have read. Any relevant qualifications will be valuable too.
When you attend an interview with a lender, you need to be prepared to present yourself in a professional manner. You should be ready to answer questions and ensure you can provide the additional information in a clear, concise manner. In order to do this you need to prepare carefully and make sure you have all of the details you will need. Your performance at this stage is crucial.
At Stewart Hindley and Partners we focus exclusively on guest house finance and financial solutions for the hospitality industry, and we support all kinds of clients in their journey to own a successful and profitable business. We have extensive knowledge and experience to share with every client and aim to become a valued resource to each one.