amirade00:
Hello NL, I would like to seek opinion of some of you here. I bought an existing guest house of 30 rooms 6 months ago, but I haven't had enough to renovate it to my taste and start running the business yet, so basically it has been shut down since I bought it. I'm thinking of applying for loan from Microfinace to fund the project so operation can commence in the hotel. I'm seeking from microfinance because I will be using the same hotel as collateral and MF doesn't need a c of o since the hotel doesn't have one yet.

Hotel has 30 rooms, and it's in Egbeda Akowojo , I would like your advice to know if am not gonna be making a mistake. I am hoping after renovation and work start then I can be able to be financing back the loan monthly from funds made from the hotel.

nnamdiosu:


1. What's the duration of the loan and principal amount.

(15M. For 12 months)

2. What's the interest rate.

(40 percent)

3. Is there any hotel around the location of your own


(Yes, but not on the same street)
The street which the hotel is on is a big community which has lots of shops from the beginning of it till the end, more than 50 active shops and houses) The hotel is the only one on that street and it actually used to be very popular because ashawo used to live there)

4. What's the monetary value of the hotel.

(30M)

It has a hall of 100 people capacity
An outsider bar
An indoor bar
Spacious compound that will take about 10 cars

Answer this questions and I'll be able to.advise u on what to do

nnamdiosu:
Hmmmm I don't advise you go for the loan.

The interest is too high . At 15 million for a year with a 40 percent interest it will be almost impossible to pay back even if the hotel is up and running. Reasons being you still be making concurrent expenses like staff payment, property maintainace, tax , nepa bills etc.
It will be overwhelming.

Solution
I propose you meet friends and family for a long term soft loan. That will enable you to break even in a safe period and be able to service the loan.

You can sell other properties and rush up sections of the hotel small by small
This will give you peace of mind.

Pls don't collect that loan no matter how attractive it is.
Thanks

mekzyjoe:

Nnamdi,what is happening? No more thread on visions, rapture,angels?? What is going on my broda