As an owner of an already established business in the hospitality industry – be it a restaurant, bar, hotel or liquor store – you understand how challenging it is to get a loan while doing all the paperwork by yourself. Hiring a non-specialist will even make it worse as they could miss out on a very critical aspect that would delay the processing of your loan.
It is advisable that you work with licensed lenders that have a solid reputation for offering excellent services. Also, the lender’s loaning capacity, areas of specialization and having pre-underwriting services are critical factors in financing in the hospitality industry. What should you consider when seeking funding for your hospitality business?
The Lender’s Capacity
If you are looking to expand, you will find it limiting to work with a lender that offers a one-size-fits-all financial product. It will be strenuous for them to process your loan as they have not mastered dealing with hospitality businesses. Reviewing the lender’s license details will give you some idea of how much they are capable of handling.
You are not the only one who wants to secure that space for an additional location of your business. There are many others, some of which have ready cash on hand to close the deal. So, without the right strategy here, you just might miss out on that perfect location.
With pre-underwriting, though, your lender will put your loan application through a thorough vetting process way before you enter into that property-buying contract, which will enable you to be at the same bargaining position with all-cash buyers.
Understanding these two elements will help you save time when finding the most competent lender. One with the right experience and understands the unique challenges in financing for the hospitality industry.