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Merchant Cash Advance in Hotels and Motels

Merchant Cash Advance in Hotels and Motels

Hotels and Motels are big business enterprises. Huge investments are involved in hotel and motel business. These concerns are usually financed by banks and industrial finance units. Running hotels and motels sometimes run into rough weather. Financial stress does occur in such big concerns also. There are many factors that contribute to such financial crisis.

Banks do not readily come forward to assist hotel and motels for these financial crises. The modalities are procedural norms of banks are very cumbersome to complete. Banks require collaterals for short term loans and these are one time affair. Financial crisis keep on occurring at almost regular intervals and lack of finances pose a real threat. These occasional hurdles are in the nature of facelift up, new fixtures and furniture, purchase of cutlery and groceries, maintenance of rooms and service providers etc. At times when the business is slump it becomes difficult to tide over these situations.

Hotels and motels promote payment through a card which is a very convenient mode to pay. Payment at the hotels and motels by the customers do not carry that huge sum of money in their purses and the only way to make payments is through cards. With the cards the customers normally carry the bank in their purses. Hotels accept their payment through cards. Business is facilitated by payment through cards. More payments and business through cards provides a solid base for merchant advances.

Huge receipt for services provided by hotel and motels enables merchant cash advance providers enough cushion by way of sales by cards. It becomes extremely easy for cash providers to meet the exigencies of hotels and motels.

Merchant Cash Advances are quick to obtain if the sales through cards shows a rising trend. Good future business of such kind is anticipated and this forms the basis of merchant cash advances. There are no hassles, documentation, collaterals involved in merchant cash advances. Such advances are sanctioned very quickly and there are no repayment schedules. There is complete freedom to use the funds as per the need of the establishment. Merchant Cash Advance is indeed the best financial alternatives to big, medium and small entrepreneurs.

It should be an endeavor of hotels and motels to promote business through cards. This provides a special status to the establishment and a convenient mode of payment to its customers. It improves the clientele of business. Usually payments are of higher amount and the easiest and most convenient mode is through cards. Such payment mode gives a status to business and a solid cushion to the entrepreneur who can avail finances at a short notice to tide over the situations. It helps the entrepreneur to steer clear of all financial crises without affecting the business. The repayment of such finances is also not a problem as the cash provider always receives payment upfront from the sales through card every month. So there is no chance of default in payment of merchant cash advance. The problem of default in payment and the subsequent chances of account becoming a non-performing asset and recovery aspect of the loan through legal remedies do not exist.

Summing up all factors, merchant cash advance are the best option to tide over occasional financial crisis. 

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