Zoom on the financing of hotels – Bank loan up to 6 months

You have decided to open a hotel? The hotel industry is a sector that requires significant financial resources, so it is essential to look into the financing of your hotel.

Good news: In this article you will find detailed information on the different options available to you: ready for your hotel, crowdfunding, leasing, and many more.

What are the elements to finance for the creation of a hotel

What are the elements to finance for the creation of a hotel

First, it is important to know the different elements that require financing. Find them in the table below, accompanied by the main financing methods available in each case.

Element to be financed Bank financing Leasing Grant / tax credit
Real estate / works Professional Credit
10 – 20 years
Real estate leasing Investment subsidy in certain cases
Equipment Professional Credit
27 years old
Leasing (or long-term lease for vehicles) Investment subsidy in certain cases
Stock Short-term financing possible in some cases    
VAT Relay loan up to 6 months    
Cash from departure Discovered authorized or cash facility    
Purchase of the goodwill (if recovery) Professional Credit
5 to 15 years
   

The personal contribution needed to obtain financing for a hotel

The personal contribution needed to obtain financing for a hotel

The personal contribution, that is to say all the capital that you bring for the creation of your hotel, alone or with your associates, is essential to obtain financing for a hotel.

The personal contribution shows a real financial implication within the project. It makes it possible to align the interests of the partners with that of the banks: by investing their money, the partners also have something to lose if the project fails. And so, credit the project with banks, which will provide a loan for your hotel.

It is therefore very difficult to obtain hotel financing without personal support. However, we have designed a guide to support you in the recovery of a hotel without input.

How much personal contribution does it take to get financing for a hotel? There is no established rule for defining the ideal sum of money provided by the entrepreneur, but it is generally considered that it is preferable to have a personal contribution covering at least 30% of the creation funding requirement. of the hotel.

You do not have such a sum at the moment? Do not panic ! Beyond your personal savings, there are several ways to build your personal contribution.

For example, you can start a crowdfunding campaign for your hotel. Crowdfunding involves using group savings to make your project a reality. This type of financing can take many forms:

  • donations, possibly with a counterpart to encourage people to support you, such as a free night
  • an investment in the company, in this case the contributors become your partners
  • a personal loan to the partners, in which case you indulge in a personal capacity in order to invest more in the company

Crowdfunding can be interesting for a hotel project because it allows, in addition to the sums collected, to talk about the project before its launch and thus to measure the interest of such a project.

It is also possible to put your relatives, friends and family, contribution: this is called “love money”. Here again your relatives can support you by investing in the company, which can allow them to benefit from tax reduction, or by lending you money in a personal capacity.

Finally, the use of private investors is also a method not to neglect to finance a hotel.

The drafting of the business plan a prerequisite for finding a financing for a hotel

The drafting of the business plan a prerequisite for finding a financing for a hotel

Whatever your personal situation, you will need a business plan to get financing for your hotel.

Indeed, the business plan is the reference document for the search for financing. It is a complete and detailed document, the objective of which is to convince your financial partners to follow you in your entrepreneurial project.

In a schematic way, the business plan of a hotel contains two main parts:

  • A written section whose objective is to present in detail the project (target market, team, legal structure, commercial strategy, personnel plan, etc.), and to convince of its assets
  • A financial plan highlighting the need for financing the project, and above all, its potential for profitability in the medium term

The business plan of your hotel must be treated, since it must convince of the attractiveness of the project.

If you have never done a business plan, or do not feel comfortable embarking on this document alone, you can use an online business plan software.

Using specialized software has several advantages:

  • You are guided in the drafting by detailed instructions and examples for each part of the plan
  • You can draw on business plan templates already written
  • You easily realize your financial forecast by letting the software take care of accounting aspects for you
  • You get a professional document, formatted, and ready to be sent to your banker

If this type of solution interests you, know that you can try our software for free by registering here, it also contains a business plan hotel model.

Aid for the creation or takeover of a business

Aid for the creation or takeover of a business

There are several business creation aids, which you can possibly benefit from if you seek to finance a hotel creation or takeover.

Here are a few :

  • NACRE (New Support for Creators and Business Returnees): its objective is to offer personalized assistance to young entrepreneurs, as well as a zero-interest loan for the first three years.
  • The ARCE (Support for the Resumption or the Creation of Enterprise) and the AER (Help to Return to Employment): ARCE is intended for jobseekers, and allows them to continue to receive 45% their rights to unemployment. The AER is also an aid offering a form of wage substitution, but only for people who have lost a job against their will.

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