Finance, specific for motels only.

This section on finance is "Industry Specific" and only deals in providing finance for motels in the following combinations.
1. Freehold Motels including the business component
2. Leasehold Motel Businesses
3. Investment Freehold Motels

The first step is to find a Financier who accept motels as an acceptable line of business and:
1. The business operation of the motel fits within the Financiers guidelines.
2. The Applicants can prove that they are capable of operating the motel business.

The business and the applicants are carefully scrutinised by the Financier and if the application is accepted the interest rate is set calculated on what the Financier assesses the risk factor.

High Risk - Higher Interest Rate
Low Risk - Competitive Attractive Interest Rate

Special Comment:
The scrutiny process is exhaustive with strict procedures in place using Industry benchmarks collected by the Financier from a;; areas of the business spectrum.
We can supply overviews from Lenders on what they require to assess a loan on a motel.

Lending Percentages on the value of the motel:
The following are maximum lending percentages on good risks based on the Financiers value of the Freehold and/or Business.
1. Freehold Motels including the business component 60% to 70%
2. Leasehold Motel Businesses 50%
3. Investment Freehold Motels 70% to 75%

Other income and security will be taken into consideration allowing the borrowings to be increased.
The bottom line is that you must know the business's true net profit to assess whether you can not only meet the interest component but the other expected and unexpected costs that could appear.

Interest Rates:
Indicative interest rates between 7.5% to 9.25% and a verbal indication can be provided once your details are known.

Special Finance Software Program:
Software has been constructed specifically to assess the financial position and capital worth of the motel business and freehold. In addition the program calculates your financial position with the cash flow of the motel business.
Most importantly the template of the program originated from a major Bank and assistance was given by the National Australia Bank Tamworth in the lending ratios on the "Debt Service" profile within the program. <View Program>

Russ can be contacted on 02-6766-5331 or 0428-668-357