Commercial property loan | Up to 80% of the property’s value | - Provides the funding you need to buy a hotel
- Flexible repayments
- Wide range of loans available
| - A very detailed business plan is typically needed to qualify
- Since lenders classify hotels as “special use” commercial properties, you may only be able to finance a small percentage of the property’s value
| Read our guide to commercial property loans |
Equipment financing | Up to your equipment’s total cost | - Provides the funds you need to purchase expensive equipment
- The equipment you buy acts as collateral for the loan
- Wide range of finance options to choose from
- Flexible repayment schedules can be tailored to suit your business
- Fixed and variable rates available
| - Fees and interest charges increase costs
- Can be difficult to determine which option is the best fit for your business
| Read our guide to equipment financing |
Line of credit | $10,000 to $1,000,000 | - Access a line of credit whenever you need funds to cover business costs
- Can help you overcome short-term cash-flow shortages
- Only pay interest on the money you borrow
- Borrowing a smaller amount means reduced risk
- You can negotiate fixed or ongoing terms
| - May not provide all the funds you need to purchase a business
- Interest charged monthly
- Ongoing fees apply
- You’ll need a good credit history to qualify for a line of credit
| Read our guide to business lines of credit |
Term loan | $25,000 to $5,00,000 | - Borrow the funds you need to pay for purchases and manage your business
- Repay your debt over a fixed period
- Security and consistency of regular repayments
- Fixed and variable interest rates available
- Wide choice of loans from an extensive range of lenders
- Terms of 15 years or more available
| - Most fixed-term business loans require collateral
- Doesn’t offer the same repayment flexibility as other options
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Unsecured loan | $1,000 to $100,000 | - Fast access to cash
- Easy application process
- No security required
- Handy to help manage short-term cash-flow problems
| - Attracts higher fees and interest rates than other loan options
- Short repayment terms
- High fees if you fall behind on repayments
| Read our guide to unsecured business loans |
Invoice financing | Up to 95% of the value of invoices due | - Access money you’re owed before transactions to go through
- No collateral necessary
- Makes planning your finances easier
| - Pay fees on something that could have been free
- You have to repay even if your customers don’t pay you
| Read our guide to invoice financing |
Merchant cash advances | $2,000 to $50,000 or up to around 25% of your annual revenue | - Fast funding
- Repayments decrease if your profit takes a dip
- No security needed
- Good credit not always necessary
| - Can be expensive
- Risky if you can’t easily predict future profits.
| Read our guide to merchant cash advances |