Hotel renovation projects can be daunting, but we have a checklist for you so that financing your next project doesn’t have to be. Whether your project is big or small, we want the financing to be the least of your worries.
- Have a clear understanding of the scope of your project. The details you provide upfront allow us to secure the right amount of financing while streamlining the process to make it easier, faster, and smoother for your particular project.
- What is your time frame? More than likely you are not replacing floors, mattresses, lighting, and paint all at once. Know what your schedule of upgrades is going to look like and we can help you focus on the immediate needs. We can also better plan for the future of your hotel. Many lenders recommend that you break down the projects into phases to make the financing process and the project management easier to manage. When you breakdown the cost of your immediate expenses instead of trying to obtain financing for the entire project also means that you will only be paying interest on what you need now!
- Who are your Vendors? Before you apply for financing, do your research and determine what vendors you are going to be working with to complete your project. If possible, have estimates ready. The more you know about what you need, the better we’ll be able to help finance it. Also, quotes from vendors allow the lender to confirm that the assets you are purchasing can be used to collateralize your financing, and to verify they are providing you with the best options.
- Be ready to outline your ownership structure When applying for financing, be sure you outline not only the owners of the location(s) you’re upgrading but also your network of hotel ownership. Many lenders require this information so that we, as a lender, have a good understanding of your full enterprise. Be sure to include, too, the number of locations in which you have ownership.
- When asked for bank statements. 3 months of your recent bank statements are commonly requested by lenders to verify your business liquidity. This gives the lender the assurance that you can comfortably satisfy your monthly payments. Most lenders are looking for a bank balance equal to 10-15% of the amount you want to finance.
- When you’re ready to take the next step After you complete the first phase of your project and you’re ready to make the next improvement, Direct Capital can make moving forward even easier. When you develop a relationship with your lender, you gain the confidence and knowledge that we are in tune with your project time lines and can help you transition from one improvement to the next with little to no time waiting for financing. We can even set up your payments on days catered to your needs: the same day as your current payment or a different day that better aligns with your cash flow.
To find out more about how Direct Capital can help you, give us a call at (888)501-6846 or email us at email@example.com.