Hotel Loan Modifications
Commercial loans are created individually for each industry.
One form of commercial loan is the hotel loan provided to the hotel and motel industry.
These loans are given to people who wish to either start a hotel or make improvements to the present state of their existing hotel business.
In the past, there were many financial institutions that provided commercial loans for the hotel and motel industry.
Today many of these financial institutions are in trouble and want to see an exemplary business plan that ensures any loan given can be paid back by the borrower within a specified period of time.
If a borrower defaults on their commercial loan, a commercial loan modification is advised.
With declining tourist traffic, many hotel and motel owners are unable to keep up with current loan payments.
In this case, lenders will usually decide to accept a hotel loan modification to eliminate non-performing loans from their books.
A hotel loan modification will typically rework loan payment schedules, lower interest rates and lower the monthly payments for the borrower.
A hotel loan modification agreement will be drawn up with the new terms and conditions stipulated and signed by both parties.
Hotel lenders are familiar with the hotel and motel business and employ experts to scrutinize the business plan of the borrower.
These experts look for certain business essentials, such as the availability of customers and the cost of real estate where a hotel is located.
Hotel loan modifications are drafted like any other commercial loan, but specific areas that apply to the hotel and motel industry will be outlined.
A long term plan is drawn up for the repayment of the loan which the borrower agrees to meet.
Available loans may have a fixed or variable rate, in which the borrower pays set amounts at varying intervals, or a bulk sum or balloon payment which includes the total loan and interest payments respectively.
Smart hotel owners should take advantage of the unusual climate in the commercial loan industry and pursue a hotel loan modification.
One form of commercial loan is the hotel loan provided to the hotel and motel industry.
These loans are given to people who wish to either start a hotel or make improvements to the present state of their existing hotel business.
In the past, there were many financial institutions that provided commercial loans for the hotel and motel industry.
Today many of these financial institutions are in trouble and want to see an exemplary business plan that ensures any loan given can be paid back by the borrower within a specified period of time.
If a borrower defaults on their commercial loan, a commercial loan modification is advised.
With declining tourist traffic, many hotel and motel owners are unable to keep up with current loan payments.
In this case, lenders will usually decide to accept a hotel loan modification to eliminate non-performing loans from their books.
A hotel loan modification will typically rework loan payment schedules, lower interest rates and lower the monthly payments for the borrower.
A hotel loan modification agreement will be drawn up with the new terms and conditions stipulated and signed by both parties.
Hotel lenders are familiar with the hotel and motel business and employ experts to scrutinize the business plan of the borrower.
These experts look for certain business essentials, such as the availability of customers and the cost of real estate where a hotel is located.
Hotel loan modifications are drafted like any other commercial loan, but specific areas that apply to the hotel and motel industry will be outlined.
A long term plan is drawn up for the repayment of the loan which the borrower agrees to meet.
Available loans may have a fixed or variable rate, in which the borrower pays set amounts at varying intervals, or a bulk sum or balloon payment which includes the total loan and interest payments respectively.
Smart hotel owners should take advantage of the unusual climate in the commercial loan industry and pursue a hotel loan modification.
