When you are running a business, it may be inevitable that you need to borrow money at some point. This is also true for those running a bed and breakfast, or for someone trying to open one. There are many avenues to explore when you need to get a business loan for a bed and breakfast.
Explore your options with the Small Business Administration online. The SBA offers visitors an abundance of information regarding the best places for them to get a loan. Financial assistance, grants, online sources, tips and tricks can all be found at the SBA. This government-run organization will help guide users in finding the right place for them to get a loan for any business, including a bed and breakfast.
Apply for a loan at your local bank. Make sure your credit score is as high as possible before applying, for the best chance of getting a loan. Draw up a business plan detailing your prospects for the business, how you foresee your profits coming in, and how you can pay off the loan. If you have collateral, you may be able to use it to get yourself the loan you need. Any assets that are worth the same or more than the loan you desire can be used, such as your home, vehicle or property.
Apply with a cosigner. This is a good option if you do not have good credit or if you are worried about paying the loan back on your own. A cosigner will help make you a more likely prospect at your bank, as there will now be two individuals responsible for the loan payments. Make sure that you and your cosigner are in complete agreement about the loan, as they will be responsible for the payments should you have to default on them. If you have a business partner, they may be willing to cosign a loan, as well.
Check your local credit union, if you belong to one, about the possibility of getting a loan for your bed and breakfast. Credit unions offer loans and other financial services, and generally offer lower interest rates than a traditional bank loan. You are also more likely to get a loan with a credit union if you have less than stellar credit.
- cape may bed and breakfast porch image by Jorge Moro from Fotolia.com