Wondering how to get a business loan with no down payment so you can start running your own hotel? Here’s how to get a loan to buy a motel and get your business off the ground, plus everything you need to know about hotel/motel financing.
What is Motel Financing?
A motel loan is a form of financing designed to help you purchase, renovate, and run your own motel. Motel financing can take several different forms, including short-term loans, medium-term loans, and long-term loans. In addition, motel financing has a variety of use cases for an aspiring property owner.
Different Types of Motel Loans
There are multiple different types of motel loans, including short-term loans, medium-term loans, and long-term loans. Here are a few specifics to know about each.
Short-term business loans for motels often have the highest interest and are the easiest to qualify for. These loans also tend to be smaller than medium-term or long-term financing. A short-term loan may not provide enough capital to start your own motel business.
Medium-term loans usually have lower interest than their short-term counterparts. These loans are paid off over a longer period of time and are typically larger sums than short-term loans. A medium-term loan may provide enough money to purchase a property and get your business off the ground, plus the right time frame for payoff.
Long-term loans are often granted by the Small Business Administration (SBA) to entrepreneurs who need large sums for business ventures. These loans can be millions of dollars, have a rigorous application and approval process, and sometimes have 25-year payoff terms.
How Motel Financing Works
Motel financing starts with getting approved based on your credit score. As you may already know, there are a variety of factors that can influence your creditworthiness, such as your track record with other loans and your current credit limit.
When you apply for a motel loan with Fora, we run a soft inquiry to see if you’re approved, followed by a full check post-approval. This process is typically quick and simple and gets you on the road to the capital you need.
How Long Are Motel Loans?
Motel loans are typically medium-term or long-term. The duration of the loans is often based on the amount of financing you receive. When you get approved for motel financing from Fora, you’ll have access to all of the relevant information related to the length of your loan.
Uses For Motel Loans
Motel loans have a wide array of uses, including:
Finding a building: One of the first and most important aspects of motel ownership is finding a building. Whether you’re purchasing an old motel, purchasing a lot to build on, or repurposing a different type of building, you need capital. Getting a loan gives you access to the funds you need to get your motel location and start attracting customers.
Furnishing your building: A motel is more than just an empty building with beds and bathrooms. For a successful motel business, you’ll need decor, accent furniture, amenities, and more. Creating a cohesive and attractive aesthetic is one of the best ways to bring guests in, but it also requires considerable capital. A loan can help you decorate your space beautifully without compromising.
Scaling your business: If you already own one successful motel and want to open a second location somewhere else, a loan can help you get your new operation up and running. As with your first hotel, you’ll have plenty of expenses beyond acquiring the building itself. A loan helps you make your new space just as charming and attractive to prospective guests as your first location.
Staffing: The staff is the lifeblood of a successful motel. As your business grows (or as you’re starting out for the first time), you might find that you need additional capital to acquire more members for your team. That’s another use for your motel loan.
Renovations: Maybe you purchased a motel that isn’t in the best shape. You know what you want to do to get the building up and running and looking its best, but you don’t have the funds. That’s another ideal use case for a motel loan.
Marketing: Advertising is a key aspect of running a successful motel. Whether you’re trying to attract out-of-town guests with web marketing or running local ads, you need a budget. A motel loan can help you scale your business by expanding your ability to market to potential guests locally and online.
Is It Easy To Get a Loan on a Motel?
Qualifying for a loan on a motel doesn’t have to be difficult. It primarily depends on creditworthiness and the amount of capital you need from your loan. Fora offers loans ranging from $5000 to $1.5 million, and your ability to qualify will likely fall somewhere in between these two numbers.
What to Do Before Applying for a Motel Loan
Before applying for a motel loan, it’s important to ask yourself the following questions:
Do you have the credit score to qualify?
Do you have a specific plan for how to use your capital?
Do you have a payoff plan for your loan?
Eligibility Requirements for Motel Loans
Before qualifying for a motel loan, you’ll have to submit some documents and have a soft credit check run. However, this process is quick and simple and shouldn’t cause any stress.
How To Apply For Motel Financing
To apply for motel financing, start by exploring our funding options to see what will work best for you. Once you have a sense of how much capital you need from a loan and how you want to use it, you can get started with the application process here.
Motel Financing & Loans with Fora Financial
When you apply for a motel loan from Fora, you can expect your approval decision within 24 hours and access to funds within 72. We help you get the capital you need to start your motel business and make the process as simple and streamlined as possible. Get started today to grow your business like never before.