How Hotels Can Be Helped By Furniture, Fixture & Equipment Loans

Hotel FF&E Loans
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This is a busy month for the hotel industry. The AAHOA is holding its annual convention starting tomorrow, and Choice Hotels’ convention is rapidly approaching as well.

Depending on where you look, the hotel industry is either returning to boom times thanks to Americans vacationing more, or still struggling back to its feet. As vacationers get more comfortable with going away and business trips rev back up, it should continue to improve. There will be plenty to talk about at those conventions, either way.

For hotels looking to upgrade while maintaining cash flow in this teetering time—and we know there’s many who are seeking to do just that—there’s a particular kind of financing that can help you out.

It’s called Furniture, Fixture and Equipment (FF&E), and I have a definition that will lend a little clarity to it:

Furniture, Fixtures, & Equipment (FF&E) encompasses movable furniture, fixtures, or other equipment that has no permanet connection to a structure or building. While FF&E can be financed through traditional equipment leasing, the substantial depreciation makes FF&E a perfect situation to use short-term working capital loans* as a financing option, otherwise a business may continue to make payments on FF&E after its useful life.

There’s no better use for this than the hospitality industry. Hotels and motels need beds, chairs, tables, bureaus and more in order to put up and serve their guests, and traditional business loans may not cover those items in bulk the way you would like them to. With FF&E, you can be sure the program will be tailored to your needs, and you can stock those rooms with new furniture for what we can only hope is a flood of guests.

No matter what industry you’re in, you should consider specialized business loans when you can. For the hotel industry, this is a big time. Get financing that will rise to the occasion.

Have you ever used an FF&E loan, or are you considering one now? Let us know!


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*Working capital not available in the following states: AK, DE, ND, VT