How to Qualify for Merchant Cash Advance as a Hotel Owner?

Imagine your hotel's air conditioning system just decides to stop in the middle of peak summer season. Perhaps you've found the perfect opportunity to renovate a tired breakfast area into a shining, Instagram-worthy space that could increase your ratings and bookings. Traditional bank loans can take months. You need funding now.

Enter the merchant cash advance, a type of financing that is becoming increasingly common for hoteliers who are in urgent need of capital. But before you begin to dream about what that money will buy, let's get real about what it takes to actually qualify.

The Benefit to the Hotel Owner

• Surprisingly, hotel owners are actually well-positioned to get qualified for merchant cash advance loans. Why? Because your business model is built on exactly what MCA providers love to see: regular credit card transactions and predictable cash flow.
• Every time a guest swipes their card at check-in, books a room online, or charges dinner to their room, you're building the transaction history that makes lenders comfortable. Unlike seasonal businesses that might see wild fluctuations, hotels typically have steady revenue patterns that MCA providers like.

The Numbers Game: Revenue Requirements

• Now, let's cut to the chase: most MCA providers are looking for a minimum of $10,000 to $15,000 in month-to-month revenue. For a hotel owner, this means occupancy rates that are fairly modest.
• Run the numbers on your property: If you operate a 15-room hotel at an average rate of $120 per night, even at a 50% occupancy rate, you are grossing approximately $27,000 a month. That puts you comfortably in qualifying territory. Even the smaller properties with 8-10 rooms can usually meet minimum thresholds during their busier seasons.
• The beauty of hotel revenue is its consistency. Sure, you might have slower winters or busier summers, but you're not selling one-off products or hinging on sometimes unpredictable contracts. Guests check in, guests check out, and revenue flows. MCA providers recognize this reliability.

Credit Scores: The Honest Truth

That's where merchant cash advances really shine over traditional financing. That credit score you've been stressing about? Yeah, it matters less than you think.

Traditional banks might shut the door if your score dips below 680. MCA providers? Many will deal with hotel owners whose scores sit in the 500-600 range. They have seen long-time hoteliers weather economic downturns, deal with unexpected property repairs, or invest heavily in renovations that temporarily strained finances.

What matters more is your current business performance. If your hotel is generating great revenue today, that speaks louder than past financial challenges. Think of it this way: your bank statements are your new credit score.

That said, having a score over 600 definitely helps. It can unlock better terms, higher advance amounts, and faster approvals. But it is not the iron gate to qualification that traditional lending makes it.

Documentation: Keep It Simple

• The most refreshing thing about applying for an MCA is the minimal paperwork involved. Gone are those nightmare loan applications that demand everything short of your kindergarten report cards.
• You typically need only three key items. First, bank statements, usually the last three to four months. These indicate deposit patterns, cash flow consistency, and overall financial health. Second, credit card processing statements if you process significant card volume. Third, basic business documentation like your EIN and business license.
• No overall business strategies. No intricate property appraisals. No tax returns back to the dawn of time. Sometimes, an applicant can put an entire application package together in less than one hour.

Time in business: Six months threshold

Most of the MCA providers want at least six months of operation for your hotel; some will accept as little as three. This is understandable, as they would want evidence that you are not just a flash opening that fizzles out.

For a well-established hotel owner, this is not an issue. However, if you bought or opened just recently, you may have to wait a few months until you qualify. Use that time wisely: focus on building strong revenue patterns and maintaining clean bank statements.

This, of course, is much more lenient than a regular business loan, which often requires two to five years of operating history. Six months in business trumps six years waiting to get approved.

The Application Journey

Once you have gathered your documents, the actual application process moves along really quickly. Most providers have online applications that take 15-30 minutes to fill out. You'll answer some basic questions about your hotel, upload your documentation, and submit.

You'll be getting a decision within 24-48 hours. Approved? Funding can hit your account in as little as one business day. This speed is precisely why hotel owners turn to MCAs when opportunities or emergencies come up.

Maximise Your Approval Odds

Want to strengthen your application? For starters, keep revenues stable for at least three months before you apply. Avoid overdrafts and bounced payments in the business bank account.

If possible, increase your credit card processing volume-this reflects strong customer flow and reduces perceived risk. Pay down outstanding debts where possible, and make sure all business licenses and registrations are current.

Consider only applying during your stronger revenue months. While seasonality will not disqualify you, it's better to apply when your numbers shine brightest to improve your terms.

The Bottom Line

Qualifying for a merchant cash advance as a hotel owner isn't about jumping through hoops or meeting some impossible standard. It's about showing what you already know: your hotel is a functioning business that serves real guests and brings in real revenue.

If your rooms are filling up, your guests pay, and your operations are running smoothly, you're likely already qualified. It's not a question of whether you can get approved; it's a question of whether the MCA is the right financial tool for your particular need at this moment in time.