LBNB E-BOOK || CHAPTER 2B
GETTING STARTED IN HOLIDAY RENTALS
Chapter 2B For each issue in 2021, we will be serialising a section of our Luxury BnB E-Book for those looking to set up their own hospitality business. By Abbey Warne and Dominic Johnson
Welcome to Chapter 2B, which will introduce you to the financial aspect of setting up a BnB. It might seem like a complicated process but hopefully the content in this chapter will make it easier. In this chapter we will take you through the different types of borrowing available when it comes to finance, and how you can get the best support possible.
Contents:
TYPES OF BORROWING AVAILABLE This section will introduce you to the types of borrowing available, including information on business loans and the steps to consider when it comes to arranging business finance. INFORMATION FROM MATT BRYANT AT ZIGZAG ACCOUNTANTS Mortgage
1A: Intro to holiday rentals
A mortgage is one of the most popular means of financing a Bed and Breakfast start up.
1B: Intro to financial considerations
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2A: BUSINESS PLANS & LEGAL ENTITY >> 2B: FURTHER FINANCIAL CONSIDERATIONS
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Be wary of the risk of over-borrowing, do not overestimate the amount of business that you will attract during the year. Take into account any out of season periods.
Already have a suitable property? 3A: Interior - furnishings and tech • 3B: Operations - provisions, access & storage • 4A: Booking operations
You may need to re-mortgage it to obtain the cash for conversion or modification work. If this is the case, you will need to inform your current lender that you intend to run a B&B.
4B: Management - staff & planning
Business Loans
5: Checklists
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In the past, businesses would have contacted a high street bank for a business loan. Whilst this option is still popular, there are now more lenders willing to lend finance.
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