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B&B Loans: Best Business Loans for Bed and Breakfasts

Operating a bed and breakfast can be challenging, especially when you consider unpredictable occupancy rates and reduced revenue during the off-season. Thankfully, there are many loan options available to help B&B owners cover costs and keep their businesses running year-round.

Bed and Breakfast Loan
Christi Gorbett
Written by:Christi Gorbett
Freelance Content Marketing Writer

Reviewed by: Jen Hubley Luckwaldt, Content Writer and Editor


Many or all of the products featured here are from our partners who compensate us. This may affect which companies we write about and where the company appears on a page. However, any analyses, or reviews expressed in this article are those of the author’s alone, and have not been approved or endorsed by any partner.

Bed and breakfasts tend to be seasonal businesses with occupancy fluctuating from month to month. With such unpredictability, it can be difficult to ensure expenses are covered throughout the year. The good news is there are many lenders offering small business loans to help B&Bs stay in operation despite their reduced cash flow.

This article will teach you everything you need to know about how to finance your bed and breakfast, you’ll learn about how to use B&B loans, available loan types, and what criteria to use to select the best loan for your B&B. 

B&B Loans: Best Business Loans for Bed and Breakfasts

Finding the best bed and breakfast financing takes a bit of research. You must spend time evaluating the various options to find one that best matches your needs

In this review our experts highlight the rates, fees and terms of each lender and explain what makes them a good option. We also share potential downsides of each lender, and provide a rating methodology you can use to select the best option for your needs.


Best B&B Businesses Loans for 2023 - Full Overview 

Here’s an in-depth look at some of the best lenders for B&B loans. 

Best Overall
Lendzi logo

Lendzi - Best for Businesses With High Revenue

Factor Rate
Starting at 1.10
Loan Amounts
Up to $4 million
Min. Annual Revenue
Key Features
  • Borrow up to $4 million in working capital
  • Min. credit score: at least 500
  • Min. time in business: 6 months
  • Equipment financing up to $2 million
  • Business line of credit up to $250,000
  • See your options without hurting your credit
  • Flexible terms: 3 to 15 months
  • Excellent customer reviews on independent review sites
  • Get funding in as little as 24 hours
Pros & Cons
  • Easy online application
  • Applying does not affect credit score
  • Bad credit accepted
  • Excellent customer reviews
  • Fast funding times
  • Representative guides you through the process
  • Startups may not qualify
  • Must have high annual income

Lendzi offers loans to small businesses with high revenue or who have been denied funding elsewhere. They are a direct lender and partnered with more than 75 other lenders, increasing the odds of getting you the bed and breakfast loan you need, even if your credit isn’t ideal.


Main Features

Lendzi offers three products for your bed and breakfast business. The first is a working capital loan up to $400,000. Terms are between three and 15 months, and factor rates start at 1.15. The minimum credit score required is just 500. Second, Lendzi offers equipment financing loans. These can be used to purchase inventory or equipment for your business. You can borrow up to $2 million, terms vary between 12 and 84 months, and the minimum credit score requirement is 550. Because the equipment acts as collateral, these loans come with low rates starting at 3.49%. And finally, Lendzi offers merchant cash advances which allow you to borrow up to $400,000 as an advance on future sales. Factor rates start at 1.10 and terms vary between three and 15 months. To qualify, you need a credit score of 525 or higher. Other requirements of qualifying for a loan from Lendzi include six months of business history and $180,000 or more in annual revenue.

Lendzi works with dozens of lenders to get you funding for your bed and breakfast, regardless of credit score. They offer seven different types of small business loans, three of which cater to poor credit. Once you apply, a Lendzi representative will reach out to discuss your business and review your loan options. Currently, Lendzi has more than 2,000 5-star reviews on Google, TrustPilot, and Better Business Bureau. We highly recommend giving them a chance if you have been struggling with your credit.
Backd business loans

Backd - Best for Cheapest Interest Rates

Factor Rate
Starting at 1.10
Loan Amounts
Up to $2 million
Min. Annual Revenue
Key Features
  • Borrow up to $2 million
  • Min. Credit Score: 640
  • Min. Time in Business: 2 years
  • Industry best factor rate for MCA - as low as 1.10
  • APR for the Line of credit product starts at 35%
  • Flexible repayment terms up to 16 months
  • Get funding in as little as 24 hours
  • Check your rate with a soft credit pull
Pros & Cons
  • Easy online application
  • Instant lending decision
  • Fast funding times
  • No collateral required
  • Tailored business loans
  • Flexible payment options
  • Startups will not qualify
  • Certain industries will not qualify
  • Rates and fees not disclosed on the website

Backd offers bed and breakfast business loans up to $2 million, making them ideal for those that want to update their space or perhaps purchase a new one altogether. Backd has a unique business model in that they tailor their loans specifically to each business. Founded in 2018, they’ve funded more than $1 billion to more than 10,000 small businesses across the U.S.


Main Features

Backd offers two types of loans to bed and breakfast businesses - working capital loans and business lines of credit. Working capital loans range from $10,000 to $2 million with terms up to 16 months. Payments are made daily, weekly, or semi-monthly depending on what works best for you. Business lines of credit range from $10,000 to $750,000 with unlimited terms. No collateral is required for either type of loan.

To qualify, you must be based in the U.S., have a business bank account, be in business for two years or more, have at least $200,000 in annual revenue, and have a 640 or higher FICO score.

Backd was created to get more businesses the funding they need; you could easily be one of them. It takes just a few minutes to fill out the application and you should receive a lending decision instantly. Review the rates and fees, and then decide whether or not you’d like to accept the loan. If you do accept, funds should be in your account within 24-48 hours.
SMB Compass

SMB Compass - Best for Fast Funding Times

Interest Rates
Starting at 7.99%
Loan Amounts
$10K - $10 million
Min. Monthly Revenue
Key Features
  • Loans up to $10 million
  • Min. credit score: can go as low as 550 for certain loans
  • Min. time in business: 1+ years in business, no startups
  • Funding times: 5 to 7 days for term loans and 24 - 48 hours for line of credit
  • Flexible terms: 2 – 10 years for term loans
  • Interest Rates: starting at 8.99% for term loans
  • Applying does not impact credit score
  • Nine loan products to choose from
Pros & Cons
  • Low, competitive rates
  • Large loan amounts
  • Loan terms up to 25 years
  • Excellent customer service
  • Poor credit not accepted
  • Not available in all states
  • Must be in business at least one year
  • High revenue requirements

If you need a loan for your bed and breakfast business, but aren’t quite sure which loan would be best, SMB Compass can help. While most lenders only offer a few types of business loans, SMB Compass offers nine. Types of loans include business lines of credit, business term loans, SBA loans, equipment financing, invoice factoring, and more. Plus, the lender ranks “excellent” in terms of customer service and a representative is able to walk you through the application process and help determine which loan product is right for you. To qualify, you’ll need a credit score of 650 or higher, one year of business history, and $20,000 per month in revenue.


Main Features

SMB Compass offers nine different types of small business loans to bed and breakfast owners. Their mission is to make loans more accessible to small business borrowers by providing cost-effective and flexible lending solutions. SMB Compass business loans range from $10,000 to $10 million with terms up to 25 years. Rates start at 7.99% for qualified borrowers. The lender has currently provided more than 1,200 U.S. businesses with more than $250 million in financing. To apply, simply fill out their easy online application. It takes just a few minutes and will not impact your credit score. If approved, funding can be dispersed within 24 hours.

SMB Compass can help your bed and breakfast business get where it needs to be, whether that’s with a business line of credit to help cover working capital expenses or a business term loan to refinance some existing debt. Qualification requirements are a bit stricter when compared to other lenders, but in return SMB Compass offers large loan amounts, flexible repayment terms, nine loan types, excellent customer service, and fast funding times. Contact SMB Compass today to get started or fill out their easy online application!

National Funding - Best for B&B Equipment Financing

Factor Rate
Starting at 1.10
Loan Amounts
Up to $500K
Min. Annual Revenue
Key Features
  • Min. Time in Business: 6 months
  • Min. Credit Score 600
  • Borrow up to $500,000 in working capital
  • Equipment financing up to $150,000
  • Factor rate From 1.10
  • Fast funding
  • Early payment discounts
  • Equipment financing repayment 2-5 years
  • Working capital repayment 4 months - 2 years
Pros & Cons
  • Easy application process with minimal paperwork
  • Quick disbursement, as fast as one business day
  • Loans available to borrowers with less than excellent credit
  • Discounts for early repayment
  • Limited repayment terms
  • Factor rates can be high
  • Additional origination fees charged

National Funding is the best loan option for bed and breakfast owners with fair credit.. Repayment is required within 6 to 15 months, which makes this a good choice if you’re struggling with cash flow issues in the off-peak season or need to pay for unexpected expenses.


Main Features

National Funding offers bed and breakfast financing of $5,000 to $500,000. These loans come with payment terms between 6 to 15 months. If more funding is needed, you’re eligible to apply for additional loans 60 days after your original disbursement.

Though the acceptance rate is high for these loans, your B&B will need to be on solid financial ground—your business must earn $250,000 annually and be active for at least 6 months to qualify for a loan. National Funding also charges loan origination fees, which could equal up to 36% of the loan total.

In addition to bed and breakfast term loans, National Funding also offers equipment financing and standard term loans

National Funding is a great choice for owners of an established B&B. The payment terms are relatively short - between 6 to 15 months - which makes them excellent bed and breakfast business loans for owners who are temporarily struggling with cash flow problems.
fora financial logo reviewed on

Fora Financial – Best for Short-Term Loans

Factor Rate
Loan Amounts
$5K-$1.4 million
Min. Monthly Revenue
Key Features
  • Min. time in business: 6 months
  • Min. credit score: 550+
  • Borrow up to $1.4 million
  • Factor rate from 1.15 to 1.40
  • Ideal for plenty of industries
  • Approval not solely credit based
  • Early payoff discounts
Pros & Cons
  • Fast funding in as little as 24 hours
  • Wide range of uses for loans
  • Can qualify with poor credit
  • Low annual revenue requirements
  • Interest rate may be higher than average
  • Borrowing, origination, and late payment fees

Bed and breakfast owners looking for short-term loans should consider borrowing from Fora Financial. They offer loans ranging from $5,000 to $750,000to be paid off within 4 to 15 months. There are no usage limitations on these short-term loans; you can use them to upgrade your B&B kitchen equipment, cover wages during slow seasons, or purchase new mattresses. 


Main Features

Fora Financial offers short-term loans between $5,000 and $750,000 that must be repaid within 4 to 15 months. Interest rates for these loans vary, but they typically fall within a 1.1 to 1.9 factor rate. If you borrow $10,000 at a 1.2 factor rate, that means you’ll need to repay $12,000 ($10,000 x 1.2). They may also assess a loan origination fee and borrowing fee. Fora Financial’s short-term loans are available to bed and breakfast owners with poor credit and limited annual revenue. You only need $12,0000 minimum in gross sales to qualify. The required time in business is also low—just 6 months—making these an excellent option for new B&B owners.

Fora Financial’s short-term loans are a good choice for new B&B owners with limited revenue and poor credit. Disbursement is fast and there are no limitations on fund usage, so you can apply your loan to any of your bed and breakfast’s needs.
biz2credit review

Biz2Credit - Best for Working Capital Loans

Interest rates
Starting at 7.99%
Loan Amounts
$25K to $500K
Min. Annual Revenue
Key Features
  • Working capital up to $2 million
  • Term loans up to $500,000
  • Term loan interest rate starts at 7.99%
  • Loan Repayment 12-36 months terms
  • Variable APR depending on the applicant
  • Funding in 72 hours
  • Soft credit pull
Pros & Cons
  • Multiple loan types available
  • Straightforward application process
  • High borrowing limits
  • Low minimum credit score
  • Fast disbursement of funds
  • Interest rate not disclosed up front
  • High annual revenue requirement
  • Origination fees between 1% to 6% assessed

Biz2Credit’s working capital loans are an excellent option if you need to receive funds fast to cover short-term expenses. Disbursements can be completed within 24 hours after the application is received for amounts between $25,000 to $2 million. These are especially helpful for bed and breakfast owners who need cash quickly to cover shortfalls caused by unexpected vacancies or low off-season demand. 


Main Features

Biz2Credit offers bed and breakfast working capital loans with variable term lengths in amounts between $25,000 and $2 million. Repayment schedules for these loans are flexible; borrowers can make payments daily, weekly, or bi-monthly. Interest rates for working capital loans are not publicly disclosed by the lender but are addressed during the application process. Biz2Credit allows you to apply for a business loan for your bed and breakfast even if you have subpar credit; the minimum credit score required for a working capital loan is 575, which is in the “poor” range. Other qualifications aren’t as lax; your bed and breakfast needs to be open 6 months before applying with Biz2Credit and have an annual revenue of at least $250,000 per year.

Biz2Credit’s working capital loans are a good choice for bed and breakfast owners who need financing quickly. If you’re looking to make renovations, choose Biz2Credit’s commercial real estate loans, but keep in mind they’ll need to be repaid within three years. The credit score requirement is low but your bed and breakfast must earn $250,000 annually to qualify, so check to make sure you meet the requirements before applying.

Main Features of the Best B&B Business Loans

SMB Compass4.5
National Funding4.1
Fora Financial4
  • Min. Credit Score - 500
  • Min. Time in Business - 6 months
  • Min. Annual Revenue - $180,000
  • Loan Amount - Up to $400,000
  • Interest Rate - Factor rates starting at 1.15

How to Choose the Best Bed and Breakfast Businesses Loan

  • Loan features: It’s important to evaluate your B&B loan options by comparing the features of each loan—including loan terms, repayment options, and loan amounts—to your needs.
  • Application process: Take note of how difficult, invasive, and fast the loan application process is. Will you be able to prequalify with a soft credit pull that won’t harm your credit score? How long will it take for approval?
  • Interest rates and fees: Some of the loan fees you might incur include application fees, loan origination fees, monthly service fees, prepayment penalties, late payment fees, payment protection insurance, and charges for non-sufficient funds.
  • Qualification process: Make note of the qualification process, including the minimum credit score, annual revenue needed, and business history requirements
  • Customer support: The best lenders offer live customer service reps who can be reached through multiple communication channels, including online chat, phone, and email.
  • Online user reviews: Take time to look through reviewson independent sites like Trustpilot.
  • Perks and bonuses: Also look for additional perks and bonuses such as payment flexibility, advanced technology, small business education opportunities, and advertising transparency. 

What Are the Costs of Running a B&B Business?

Running a B&B business can be an incredibly rewarding experience, but it’s not without its costs. Here’s a rundown of what you should expect to spend while operating your bed and breakfast. 

  • Initial costs: If you don’t already own the home you want to convert into a bed and breakfast, you’ll need to invest in one. The cost of the property will vary depending on its size, location, and condition but you can expect to spend anywhere from $200,000 to $1 million or more. 
  • Renovations: Once you’ve acquired your property, you’ll need to invest in renovations to get it ready for guests. Common renovations include bringing the plumbing and electricity up to code, expanding the dining area, building a commercial-grade kitchen, installing a security system, and updating bathrooms. These renovations can range anywhere from $5,000 to $50,000 and up.
  • Licenses and insurance: You’ll need to register as a legal business then obtain the proper licenses, permits, and insurance before you open up for guests. The exact requirements and costs will vary by location, but these expenses could add up to several thousand dollars. 
  • Bedding: Each guest room will need new mattresses, bedding, pillows, and towels which can run you up to $1,000 per room.
  • Food: Your food costs will depend on what type of meals you serve and how many you offer per day, but you can typically expect to spend at least $7 per guest for each meal. 
  • Marketing: If you want to attract guests, you’ll need to set up a website and actively market your bed and breakfast. Initial web site setup could cost a couple thousand dollars with monthly marketing costs reaching approximately $500 per month.


How Can You Use Bed and Breakfast Business Loans?

While some lenders may have strict rules about loan usage, most allow bed and breakfast owners to use loans in whatever way they wish. Here are a few examples of how bed and breakfast financing can be used.

  • Additional space: You can use bed and breakfast business loans to add rooms to your home, expand outdoor seating, or enlarge dining and lounge areas.
  • Interior upgrades: Loans for a bed and breakfast can also be used to paint the interior, add wallpaper, install new flooring, or purchase new furniture.
  • Kitchen remodel: Another popular option is to use bed and breakfast financing to remodel the home’s kitchen and bring it up to code. 
  • Security improvements: Loans can also be used for security improvements like a key card entry system, smoke alarms, and fire alarms. 
  • Day-to-day operations: Loans don’t have to have to be applied toward special investments—you can use them to cover the cost of day-to-day operations, especially during the off-season.


How to Qualify for a B&B Business Loan?

Learn About Various Loan Options

Take some time to educate yourself on the different kinds of loans that are available to bed and breakfast owners, including working capital loans, microloans, lines of credit, etc.

Build And Maintain Your Credit

To qualify for a wider range of loans and get the best loan terms possible, do all you can to raise your credit score and keep it in the “fair” range or above (580+).

Prepare Your Documents in Advance

Make sure you have all the necessary documentation available, including your business plan, bank statements, business license, income statements, balance sheets, cash flow statements, and statements of capital.

Know How Much You Need to Borrow

Determine how much you need to borrow before applying for bed and breakfast business loans. If you’re using the money to purchase equipment, such as baking equipment, or make renovations, be sure to get estimates in advance.

Decide What Type of Loan You Need

Spend some time evaluating your options before choosing bed and breakfast financing. For example, if you only need to borrow a small amount, focus on lenders offering microloans. If you need a quick infusion of cash to cover unexpected repairs, look into short-term loans.

Apply Only for Loans That Match Your Qualifications

Don’t waste your time applying to lenders if you don’t meet their qualifications. Check the requirements in advance to improve your odds of getting approved for a B&B loan.



Running a bed and breakfast comes with a unique set of challenges. Because occupancy rates fluctuate throughout the year, it can be hard to predict your cash flow and pay for unexpected expenses, especially during the off-season. The good news is you don’t have to worry about how to finance your bed and breakfast and keep it operational—there are many lenders willing to offer help when you need it.


*The required FICO score may be higher based on your relationship with American Express, credit history, and other factors.

Christi Gorbett

Written by: Christi Gorbett

Freelance Content Marketing Writer

Freelance Content Marketing Writer specializing in finance, personal development, education, marketing, web development, food & beverage manufacturing, pet, and contracting/home improvement niches.

More about me
Jen Hubley Luckwaldt

Reviewed by: Jen Hubley Luckwaldt

Content Writer and Editor

Jen Hubley Luckwaldt is an editor, writer, and content strategist with a focus on personal finance, careers, and DEI. A small business owner for over a decade, Jen helps publications and brands create and optimize B2B and B2C content.

More about me

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