When it comes to growing your business in the tourism sector, you may need financing at some point. Applying for a loan is an option, but it’s not a straightforward task. One crucial aspect to consider is the required documentation that financial institutions need to evaluate and approve your application. In this guide, we provide key insights and important steps to streamline this process and increase your chances of success.

1. This document verifies your business’s tax identification, which is essential for legal and tax-related procedures.

2. If your business is a corporation, provide a copy of the deed that establishes its incorporation.

3. If the powers of representation differ from those established in the incorporation, provide the relevant power of attorney deeds.

4.Demonstrate that your business complies with tax and social security obligations.

5. This plan should provide a detailed description of your tourism activity, location, scope of influence, and other relevant aspects.

6.Include details about partners and the administrator, such as their work experience, industry knowledge, and contributions to the business.

7. Project the financial results for the initial years of operation, including investment costs.

8.  Explain how you plan to finance the investment, whether through equity, external financing, or other sources. Indicate the percentage of contributions from partners compared to the requested financing.

If your tourism business is new and lacks prior documentation to support your loan application, you may need to provide personal guarantees, which involve:

Include updated income tax declarations from each partner to support their income.

If applicable, provide an updated wealth declaration, or offer details about each partner’s assets.

This includes information about rentals, income, salaries, and any employment contracts the partners may have.

It’s important to disclose all debts, both bank and non-bank, specifying the entities, types of operations, maturity dates, and involved guarantees.

If guarantees are provided by corporations, the required documentation differs and should include:

Reflect the current financial situation of the corporate guarantor.

Present model 201 or official financial statements filed for the last two years.

If available, provide audited or filed balance sheets and profit and loss statements from the previous year.

If an audit report exists, be sure to include it in your application.

Similar to previous cases, provide information about the corporate guarantor’s debt, specifying entities, types of operations, maturity dates, and guarantees.

Ensure you include annual VAT summaries, current year’s VAT payments, annual withholding tax summaries from the previous year, and quarterly withholding tax payments for the current year.

1.  Compare interest rates offered by different banks; a lower rate can result in lower monthly payments and a more cost-effective long-term loan.

2. Pay special attention to fees associated with the loan, such as study fees, early repayment fees, and opening fees, as these can increase the overall cost of the loan.

3. Examine the proposed repayment terms from each bank, evaluating how they impact monthly payments and accumulated interest.

4.  Research each bank’s flexibility regarding early repayments, grace periods, and the ability to modify payment terms in the future.

5.  Ensure you understand any other requirements imposed by the bank, such as insurance purchases or opening a current account.

6.  The quality of customer service from the financial institution is crucial. Opt for a bank that provides good service and is willing to address your questions.

7.  Don’t hesitate to negotiate loan terms with the bank; sometimes, you can secure more favorable conditions by demonstrating your business’s solidity and presenting a strong business proposal.

Applying for financing for your tourism business can be a significant step in its development. With the right documentation and thorough evaluation of offers, you’ll be prepared to obtain the funding your business needs to thrive in the exciting tourism industry. Remember that, although the process may seem challenging, investing in proper preparation is worthwhile for achieving success.