Capital Funding Solutions
Capital Funding Solutions
Syndicated Resorts Association "SRA" is a boutique capital funding business founded in Las Vegas (2019) as a Nevada corporation specializing in offering the U.S. domiciled Hotel & Resorts sector a unique, off-balance sheet funding alternative. With determined criteria, SRA will offer its Credit Card Processing Platform Of Settlement In Advance services to Hotels and Resorts. Settlement In advance funding utilizes the projected gross credit card revenue as the basis for yet-to-be-earned revenue funding as a payment in advance of earnings.
SRA has structured an alternate capital source that is not a loan but an organically derived method of funding non-affiliated flagship and affiliated hotels and resorts. SRA does not require hotel/resort collateral, balance sheet, or specific personal guarantees for funding mandatory room or lobby upgrades. SRA is not a lender, finance broker, or entity; its funding facility will not violate a lender's loan terms. SRA offers hassle-free access to capital.
SRA utilizes the hotel/resort's credit card processing revenue to secure settlement-in-advance funding. SRA's concept of settlement-in-advance funds the cash for upgrade requirements; the SRA transaction is not a loan. The transaction is a settlement in Advance of unearned revenue, a collaborative alternate funding source.
SRA utilizes the hotel's monthly credit card processing of Visa and MasterCard revenue as a settlement in Advance of unearned revenue. So, you could have $150,000 over three phases of advances ($50,000 for each phase) to upgrade your facilities with no hassles, no waiting, no extra collateral or guarantees, just available cash to improve your facility and earn even more revenue.
As a material inducement to initiate the Advance, the hotel/resort agrees to sign a new merchant application and affirm SRA's acquiring bank's right to process its future credit card transactions exclusively and unabated until the funding advance is repaid.
The fee for transacting the settlement-in-advance will depend on risk analysis; nonetheless, processing discount rates may increase by at least 1% or 100 basis points on total credit card processing revenue. There is no interest earned or charged for funds advanced. The Advance does require repayment of the principal on mutually agreed terms. Repayment of principal, in whole or part, is at the discretion of the hotel/resort and the satisfaction of SRA. The incrementally increased processing fee is terminated when the client repays the advanced funds.
According to GAAP accounting covenants, the settlement-in-advance funding is not an obligated liability but an interest-free unearned payment in Advance against future revenue. The increase in the processing discount rate is an outright business expense subject to the circumstance and situation of the business nuances, location, and appropriate taxing authority's rules and regulations.
The Sales Process
1. The hotel/Resort is identified.
2. SRA calls or visits the location.
3. The hotel affirms an application to SRA.
§ Facility improvements will occur over multiple phases and funding requests.
§ Review current Merchant statements.
§ Hotel request funding needs for the first phase of facility improvements are determined.
§ SRA explains pricing/rate structure.
§ The hotel approves and signs all documents.
4. SRA funds the settlement in Advance after SRA acquiring bank starts credit card processing.
5. SRA has no responsibilities or liabilities regarding facility upgrade arrangements.
6. SRA stands ready for a continuance of the funding phase when phase one is complete
7. The ongoing hotel/resort adjusted rate pays project funding until the principal is repaid.