Hotel Loans in San Luis, AZ for a Motel's Carpet Extractor, Floor Scrubber and Housekeeping Payroll

A lodging business has two kinds of costs that a funding request can carry. Machines that the housekeeping staff push, carry or roll from door to door, such as carpet extractors, floor scrubbers and vacuums, are equipment with serial numbers and dealer quotes, which is what equipment financing is built around.

Wages are the other kind. Housekeepers and desk clerks are paid every two weeks, while a booking site may pay the motel well after a guest checks out. A working capital loan can carry payroll across that wait, and a term loan can cover a larger set of machines at once.

Towels, sheets, soap and cleaning chemicals are operating supplies. They are paid from deposits or a short draw, not spread over years.

This site stops at the building's walls: paint, flooring, plumbing and wall units count as property work, and a loan secured by the motel property is outside this site too.

In an invented example, a two-story motel prices a carpet extractor at $3,965, a walk-behind floor scrubber for the lobby and halls at $6,535 and two backpack vacuums at $612 each. The invented machines total $11,724 before tax, financed over either term at a 12.73% annual rate.

The 54-month invented schedule saves $107.18 on each payment, yet the invented interest bill grows by $1,295.28. The invented scrubber and extractor carry the larger part of the price, so their expected working life is what a partner may weigh against the longer term.

The invented price leaves out sales tax, delivery and the first set of brushes, pads and filters. Those parts wear out and are bought again as supplies, so a partner may leave them out of the financed amount.

A motel that rents a carpet extractor a few times a year can set those invented rental invoices next to the invented payment before deciding which costs less over the same months.

County Business Patterns counts 30 traveler accommodation employer establishments in Yuma County, AZ for 2023 (NAICS 7211, the Census line that covers hotels, motels and inns).

Small employers made up a larger share in lodging than across the sector: 8 of the 30, or 26.7%, had a staff under five, against 22.0% of all Accommodation and Food Services employer establishments in the county.

The 30 establishments had 685 paid employees in the March pay period, and their 2023 payroll came to $20.8 million. Restaurant figures for the same county appear on the restaurant page and cafe counts on the cafes and coffee shops page; figures for the office ZIP sit on the San Luis, AZ page.

In the same invented motel, three housekeepers and two desk clerks together earn $5,380 in gross pay every two weeks, and the invented motel pays them on a fixed biweekly schedule whether or not a payout has landed. In the invented case, the booking site that fills many of its nights pays out 30 days after each guest checks out.

To cover the invented gap, the motel takes a $9,650 working capital loan for 12 months at a 14.88% annual rate. Twelve invented payments of $870.45 return $10,445.40, so the invented interest comes to $795.40.

In the invented case, the loan covers wages while payouts catch up, and the payments come from the deposits that follow. Walk-in guests who pay at the desk by card shorten the wait, and a partner may look at how card settlements and booking-site payouts each show up in the invented motel's deposits.

• Nightly or monthly occupancy reports from the property management system
• Card settlement reports and booking-site payout statements
• The dealer quote for the extractor, scrubber or other machines
• Payroll reports for housekeeping and desk staff
• Any franchise agreement and the lease or deed for the business

A partner may ask for part of this list and not the rest. The first call can start with the machine or the wage gap, its amount and when the matching payouts arrive.

Kitchens and coffee counters share the "Restaurants, cafes and motels" group on the industries page.