Restaurant Update Improves Hotel Cash Flow During Off Season

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Restaurant Update Improves Hotel Cash Flow During Off Season

Nearly every business owner faces the dilemma of what to do to bring in new business during slower months of the year. Instead of waiting it out, here are some creative ways you might be able to improve hotel cash flow during the slow season.

Case Study: How One Hotel Leveraged its Restaurant to Improve Hotel Cash Flow During the Off Season

Seasonal lulls occur in just about every industry, for one reason or another. The problem with seasonal lulls in the hospitality industry is that slow hotel cash flow usually comes along with it. One of our clients decided to turn their slow season into an opportunity for growth; here’s what happened.

Whether driven by weather that is too hot or too cold, the arrival or departure of the holiday season, or other annual variables, most business owners have to figure out what they are going to do doing those dreaded slow months of the year. Hotels call it the “off season.”

One of our clients in the hospitality business decided that they were not going to wait out the slow months this year. Instead of waiting for hotel business to pick up in the future, they expanded their restaurant in order to make up the revenue gap and maintain healthy hotel cash flow in the meantime.

Case Study: Hotel Restaurant Turns $30k Merchant Cash Advance Into New Business

We recently helped a client – the owner of a hotel with an in-house restaurant – obtain $30,000 in working capital using a merchant cash advance to be repaid over twelve and a half months at competitive 1.21 rate. Here is how the math worked out on the deal:

  • Cash to owner= $30,000
  • Total Payback= $36,300 (repaid over 12 and ½ months)

They used the money not only to maintain adequate cash flow during slow months, but also to update and improve their restaurant, so they could bring in new business during months that were typically slower for the hotel.

When this hotel owner came to us for a working capital solution, they were looking for an easy-to-manage, no-hassle hotel cash advance financing option. Knowing that the cash advance would be repaid out of future credit and debit card transactions made it the perfect choice for their business. Even though a merchant cash advance was a comparatively short-term hotel financing option, by spreading out repayment over more than a year, the hold back was extremely low and didn’t negatively impact our client’s cash flow.

As a result, they were able to make improvements to their restaurant and bring in new business. So not only did they maintain healthy cash flow during the months that were typically slower for their hotel business, they were actually able to improve their restaurant’s ability to bring in additional revenues year-round.

Hotel Cash Flow: Hotel Financing Can Help You Grow in the Off Season

Most hotel and motel businesses that apply for hotel financing with us will qualify, and many get the luxury of choosing from more than one merchant cash advance quote to find the one most attractive and suitable for their unique business needs. As it was in the case of this hotel cash advance case study, you might be able to choose between offers that have not only different rates, but also have different repayment schedules. We have recently funded clients with merchant cash advance rates and repayment terms including:

  • 1.12 (6 month term)
  • 1.21 (12.5 month term)
  • 1.24 (10 month term)
  • 1.275 (12 month term)
  • 1.28 (12 month term)
  • 1.36 (15 month term)

Get a Merchant or Business Cash Advance Quote

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You might also like: Business Cash Advance with No UCC Filing Funds Inventory Expansion which details how a telecom business cash advance with 6 month repayment at 1.12 rate and no UCC filing or personal guaranty requirement helped a wireless company grow by expanding inventory.

 

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  1. […] at least most) when it comes to the room at your hotel, but thinking one-dimensionally about your hotel’s room service will not fit all of your guests. Travelers come in all shapes and sizes and numbers, and not […]

  2. […] Case Study: Hotel Restaurant Turns $30k Merchant Cash Advance Into New Business […]

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