Securing finance for a hotel can be a little more difficult than it was several years ago because of the changes brought about by the global financial crisis. Lenders are willing to lend, but at the same time have become more stringent with their checks. They are ready to look into specifics about the business rather than just the property and assets. This means people seeking hospitality or marine finance need to be much more prepared if they want to secure essential mortgages or loans.
If you are applying for hotel mortgages and want to stand the best chance of obtaining the finance you need, your plan needs to be robust and detailed. When you’re first starting out, you’ll prepare a business plan to detail your aims, objectives and all of the specific information about your proposed enterprise. When you apply for finance you’ll need to go over this with the lender and you can guarantee they will look closely at it to make sure you are a good investment. If you are refinancing, you need to make sure you have updated your plan and included necessary information about demand, marketing and growth potential; lenders will look for these things as signs you can provide value.
Lenders are far better equipped now to assess the funding applications of hotels and determine whether the investment is worthwhile. This provides security for their funds, but can also be helpful for people who are thinking of starting a business. The lender should go over your plan and if they find anything wrong they will likely notify you about it or give it as a reason for declining an application. This means you can get an additional perspective on whether your plan is a viable one or not.
At Stewart Hindley & Partners LLP we strive to provide advice and guidance for people seeking hotel, guest house or marine finance. We have many years of experience and work hard to scour the market to help our clients to find the right lenders. We will keep your interests in mind and support you throughout the process, including making your proposals as strong as they can be. For tips about improving your chance of securing hotel mortgages please get in touch.