Best Bed and Breakfast Business Loans

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

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 loans to help B & Bs stay in business despite their reduced cash flow.

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

Our Top Picks for Best Bed and Breakfast Business Loans

biz2credit review
  • Multiple loan types available
  • Funding in 48h
  • Soft credit pull
credit score
Min. Credit Score 600+
loan amount
Loan Amount $25K - $6M
loan repayment
Loan Repayment 12-36 months
Fundbox review
  • No monthly fees or prepayment penalties
  • Same-day or next-day funding
  • Best for business lines of credit
Credit Score
Min. Credit Score 600+
Loan Amount
Loan Amount $5K - $150K
Loan Repayment 6-12 months
  • Ideal for plenty of industries
  • Approval not solely credit based
  • Early payoff discounts
Credit Score
Min. Credit Score 550+
Loan Amount
Loan Amount $5K-$750K
Loan Repayment
Loan Repayment 4-15 months

How to Choose the Best Bed and Breakfast Businesses Loan

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. Our experts recommend using the criteria below to evaluate loans for a bed and breakfast—it’s the same factors they used to rank lenders in this article:

  • 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. For example, if you plan to borrow a large sum to renovate your B & B and want to pay it back over the next five years, you can exclude lenders that only offer short-term loans.
  • Application Process: Take note of how difficult, invasive, and fast the loan application process is. Does the lender require a long list of financial records for your B & B that you don’t have handy? 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—will you get your loan on time?
  • Interest rates and fees: You can save a considerable amount of money by shopping around for the best interest rates and fees on bed and breakfast business loans. 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. Make sure you meet the requirements in advance, so you don’t waste time applying for a loan you don’t qualify for. For example, if your B & B has only been open for three months and the minimum is one year, you should move on to other lenders.
  • Customer support: At some point in the life of your bed and breakfast business loan, you’ll probably need to talk to the lender’s customer service team. The best lenders offer live customer service reps who can be reached through multiple communication channels, including online chat, phone, and email. It’s also helpful if the lender offers supplemental information to answer your questions, like blog posts, an FAQ page, and help center.
  • Online user reviews: Bed and breakfast owners who have taken out loans for their business will often leave reviews about their experience. Take time to look through these reviews, especially on independent sites like Trustpilot—they can tell you a lot about what to expect from a lender. For example, if customers routinely complain about how difficult it is to reach a customer service representative, you should check other options.
  • Perks and Bonuses: Also look for additional perks and bonuses such as payment flexibility, advanced technology, small business education opportunities, and advertising transparency. They may seem like small benefits at first glance, but they can add up quickly to provide you with a more seamless B & B loan experience.

Best Bed and Breakfast Businesses Loans for 2022 - Full Overview

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

1.Biz2Credit - Best for Working Capital Loans

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.

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 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 six months before applying with Biz2Credit and earn at least $250,000 per year.

The Bottom Line

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.

2. Fundbox - Best for Line of Credit

Fundbox’s business line of credit is ideal for bed and breakfast owners who need a quick infusion of cash but want to pay it back quickly. With a line of credit through Fundbox, you can be approved for any amount between $1,000 to $150,000 to be paid back in 12 to 24 weeks. This allows you withdraw funds whenever you need them, instead of having to take out another loan every time room occupancy doesn’t match your business forecast.

Easy application process
Funds typically disbursed in one business day
Borrowers with “fair” credit can apply
No origination, prepayment, or registration fees
No monthly minimum withdrawal
Payment is made automatically
Interest rates are high
Low maximum loan amount
Limited repayment terms

Bed and breakfasts can take out a business line of credit through FundBox in any amount between $1,000 and $150,000. Unfortunately, interest rates are high for Fundbox’s lines of credit; the annual percentage rate averages around 20%. Of course, you won’t be paying the full amount since this is an annual rate and repayment must be completed in less than a year (12 to 24 weeks, to be exact).

Fundbox’s requirements for time in business, minimum credit score, and annual revenue requirements are fairly easy to meet; to qualify, your bed and breakfast must be operational for 6 months and earn at least $100,000 annually. You must also have a credit score of 600 or higher for approval.

The Bottom Line

Fundbox’s line of credit is a great choice for bed and breakfast owners who need short-term funding that offers flexibility; you can borrow as little or as much as you’d like and only pay interest on what you’ve taken out. Payments are automatically deducted every week and the interest rates are high, but you don’t pay the full annual interest rate since loans are paid back quickly.

Try Fundbox

3. Fora Financial – Best for Short-Term Loans

Bed and breakfast owners looking for short-term loans should consider borrowing from Fora Financial; they offer loans ranging from $5,000 to $500,000 to be paid off within four 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.

Fast funding in as little as 24 hours
Wide range of uses for loans
Can qualify with poor credit (500 minimum)
Low annual revenue requirements
Interest rate may be higher than average
Borrowing, origination, and late payment fees

Fora Financial offers short-term loans between $5,000 and $500,000 that must be repaid within four to 15 months. Interest rates for these loans vary, but they typically fall within a 1.1 to 1.3 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 a credit score of 500 and yearly revenue of $12,000 to qualify. The required time in business is also low—just six months—making these an excellent option for new B & B owners.

The Bottom Line

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.

4. Fundera - Best for Microloans

Fundera offers a wide range of loan options, but the best choice for bed and breakfast financing is their microloans; these are available in amounts up to $50,000, which allows B & B owners to take out a small loan to cover unexpected expenses of off-season costs.

Various loan types offered
Prequalify with a soft credit check
Partnerships with multiple lenders
Competitive interest rates
No minimum annual revenue or business history
Extended repayment terms
May take a while to receive funds
Not all qualifications are divulged publicly

Fundera microloans are an excellent option if you need a small business loan for your bed and breakfast with an extended repayment period. These microloans are often used to help B & B owners get through the off-season when occupancy is limited. Loans can be taken in any amount up to $50,000 with an APR that falls between 8% and 13%. Borrowers have up to six years to repay the loan, which is considerably longer than loan terms with other lenders.

Borrowers should find it relatively easy to qualify for microloans through Fundera; there are no requirements for time in business or annual revenue and the minimum credit score is 550, making these a great choice for B & B owners who are still growing their business. Fundera also offers a several other financial products, including business lines of credit, term loans, SBA loans, equipment financing, and commercial real estate loans.

The Bottom Line

Fundera offers a broad range of financial products, but the best option for financing a bed and breakfast is likely to be their microloans. With a microloan, B & B owners can borrow a small amount of money to help get them through the off-season. Payments can be spread out over years so borrowers aren’t overburdening themselves with debt repayment during periods of high occupancy.

Try Fundera

5. National Funding - Best for Bad Credit Business Loans

National Funding is the best loan option for bed and breakfast owners with bad credit; their minimum credit score requirement is just 500, which opens the door to far more borrowers. Repayment is required within six 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.

Easy application process with minimal paperwork
Quick disbursement, as fast as one business day
Loans available to borrowers with poor credit
No compounding interest rates
Discounts for early repayment
Limited repayment terms
Factor rates can be high
Additional origination fees charged

National Funding offers bed and breakfast financing of $5,000 to $500,000 to owners who’ve had credit troubles in the past; the minimum credit score required is just 500, which is within the “poor” range. Factor rates on these loans start at 1.17 with payment terms between six to 15 months. If more funding is needed, you’re eligible to apply for additional loans 60 days after your original disbursement.

Though the credit score requirement is low for these loans, your B & B will need to be on solid financial ground—your business must earn $100,000 annually and be active for at least 12 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 bad credit bed and breakfast loans, National Funding also offers equipment financing and standard term loans. Qualification requirements are the same for these loans, but interest rates and payment terms may be more favorable.

The Bottom Line

National Funding is a great choice for owners of an established B & B who have bad credit. The payment terms are relatively short—between six to 15 months—which makes them excellent bed and breakfast business loans for owners who are temporarily struggling with cash flow problems.

6. OnDeck - Best for Term Loans

OnDeck terms loans are great for B & B owners who need money fast; you can apply, get approved, and receive funding in as little as one business day. Repayment can take up to 24 months with payments automatically deducted every day or week. This speed and flexibility make OnDeck term loans an excellent option if your bed breakfast requires unexpected repairs or you need financing to cover operational costs in the off-season.

Simple application process
Fast approval decisions
Funding in as little as 24 hours
Relatively low credit score requirement
Discounts for repeat borrowers
Only two borrowing options available
Widely ranging interest rates
Limited term length
May charge origination and maintenance fees

OnDeck offers bed and breakfast business loans in amounts ranging from $5,000 - $250,000. The APR for these loans starts at 11.98% for well-qualified borrowers but can range up to 46.06%. Repayment can be spread out over 24 months with discounts for early payoff. Be forewarned that OnDeck does charge loan origination and maintenance fees.

OnDeck also offers a business line of credit of $6,000 to $100,000 at APRs ranging between 10.99% and 35.2%. Both term loans and lines of credit require that you have a credit score of 600, be in business for at least one year, and earn $100,000 in revenue each year. The application and approval process for both types are quick and easy; you may be able to receive funding within 24 hours of completing your application.

The Bottom Line

OnDeck term loans are an excellent choice when you need money fast to cover unexpected expenses at your bed and breakfast, like replacing a broken air conditioning unit or refrigerator. The application process is simple, and you can expect to receive your funds in as little as one business day.

Try OnDeck

Best Bed and Breakfast Business Loans - Features Comparisons

Use the table below to view the various bed and breakfast business loan features and how they compare between lenders.

Company Min. Credit Score Min. Time in Business Min. Annual Revenue Loan Amount Interest Rate
Biz2Credit 575
6 months
$250,000 $25,000 to $2 million Disclosed on application
Fundbox 600 6 months $100,000 $1,000 to $150,000 Approximately 20%
Fora Financial 500 6 months $12,000
$5,000 to $500,000 Factor rates between 1.1 and 1.3
Fundera 550 No minimum requirement No minimum requirement Up to $50,000 8% to 13%
National Funding 500 12 months $100,000 $5,000 to $500,000 Factor rates starting from 1.17
OnDeck 600 12 months $100,000 $5,000 - $250,000 11.98% - 46.06%

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 $1000 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?

  1. Learn About Various Loan Options
  2. Take some time to education yourself on the different kinds of loans that are available to bed and breakfast owners, including working capital loans, microloans, lines of credit, etc.

  3. Build And Maintain Your Credit
  4. 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+).

  5. Prepare Your Documents in Advance
  6. 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.

  7. Know How Much You Need to Borrow
  8. Determine how much you need to borrow before applying for bed and breakfast business loans. If you’re using the money to purchase equipment or make renovations, be sure to get estimates in advance.

  9. Decide What Type of Loan You Need
  10. 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’re need a quick infusion of cash to cover unexpected repairs, look into short-term loans.

  11. Apply Only for Loans That Match Your Qualifications
  12. 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.

In this article we’ve reviewed several of the top business loan options for a bed and breakfast. The next step is to find which loan best matches your financial needs and qualifications then submit your application. Soon, you’ll have the resources you need to help your business thrive.

Related Loan Picks

About the Author

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