Interest rates for commercial hospitality loans remain historically low. However, we are seeing them on the rise. The most favorable recent rates we saw in January ranged from 4.35% to 4.75%. Today we are seeing 4.8% to 5.25% or higher. The better your credit, the better the cash flow of the property, the better chance you have of obtaining the most favorable rate. And don’t forget about your business plan. This contributes to the lender’s comfort level with your ability to operate a successful inn and repay your loan and that in turn contributes to the rate they offer.
We have connections with various local banks who are well versed in hospitality loans and they tend to offer the most competitive rates.
If you have a 401k, you might be able to use that to invest in your own business purchase. You might be able to qualify for an SBA (Small Business Administration) loan.
Contact me to talk about your options. But don’t wait too long. Rates are on a slow climb.
Read more about financing and more on my Top 12 Blog Posts For Buyers
