Motel owner realizes business goals with working capital financing for motels
Growing up as a child in India, Rajiv dreamt of the day when he would own his own property. He grew up in the slums of Bangalore where there were hundreds of souls living in an area of a square kilometer. Each slum in a large Indian City could cover an area of over a hundred square kilometers. At the time, Rajiv could not have imagined how would realize the American dream of successful entrepreneurship helped in part using working capital financing for motels.
Rajiv’s childhood home, if you want to call it that was a structure with a wood roof and floor and metal walls. The entire structure was home to his extended family consisting of not only his parents and siblings but rather his paternal grandparents as well. This simple wood and metal structure that covered less than 450 square feet housed seven souls.
Because of Rajiv’s economic situation, he learned early on that he could overcome poverty through extremely hard work. He also realized that his chances for success were much greater in a country that was not his homeland.
Rajiv’s 10,000 mile move
When he not yet 10 years old, Rajiv’s uncle Sudeep took a risk to move to the United States to pursue the American dream. Sudeep arrived to the United States with less than $67 in his wallet. Within a short period of time, he was able to land a job working nights at a gas station.
Six years later Sudeep had managed to save enough money to buy his own gas station. Needing help running his store, he invited Rajiv to move to the United States to help him run his gas station.
As a 17-year old boy fighting to find his place in the World, Rajiv jumped at the opportunity.
Six months after making his decision to move, Rajiv found himself travelling on an airplane for the first to his new home in the United States. Once he arrived, Rajiv dedicated his early adulthood to growing his uncle’s business.
Hard work finally pays off.
Rajiv was smart enough to learn early on that his dreams could only be realized through entrepreneurship. After nine years of working with his uncle, he had finally saved enough money to do his own business.
As Rajiv matured into an adult, he never outgrew his dream of one day owning property of his own. His dream was realized in the form of a motel along Interstate xx in Minnesota. Rajiv had bought a 24-unit motel that he could call his own. He was 27 years old when he realized his dream.
A property magnate in training
Over the next fifteen years, Rajiv’s poured his life into his motel. He had expanded from 24 rooms to 78 rooms with the addition of two new buildings on the property. Having done everything he could to grow his current property, Rajiv set about growing his budding property empire. Over the next three years, he had added two small motels to his portfolio.
With three motels under his belt, he was bitten with the acquisition bug. Rajiv wanted to add yet more motels to his empire.
Early on his career, Rajiv learned just how difficult it was to work with the banks. He had tried unsuccessfully to secure funding for his growth but the banks would have nothing of it.
After his initial experience with banks, he did want to risk losing time trying to pursue a banking relationship. After some research, he thought he could find a way to use working capital financing to build his business.
Our paths crossed somewhat randomly over two years ago in the form of a banner ad online. Rajiv just happened to click an ad that was running on a financial site where he was researching funding options. He clicked the ad eventually making his way into Rory’s inbox. Rory was the Zip Capital Group financing specialist that received the lead.
A budding friendship ensues
Rory worked with Rajiv to complete his application for a working capital financing. Rajiv owned his motels and had stable, predictable cash flows. Rajiv’s strategy was to take out a working capital financing so that he could use more of the revenues produced by his motels to acquire yet more motels.
Business goals met
Fast forward almost two years and four working capital financing later, Rajiv was able to add two additional properties to his ever-increasing motel empire. While his approach is somewhat unconventional, it worked. Rajiv met his business goals.
When asked about his experience working with Zip Capital Group, Rajiv says ‘Zip Capital Group took a chance working with me when many others would not. I am grateful for the opportunity to work with them. I have been able to meet my business goals. I look forward to working with them in the future.”
We are thankful for the opportunity to work with Rajiv. We appreciate that he values our relationship enough to refer his friends to us to help them realize their business goals.
If you have questions regarding a working capital financing for your business, please contact or call us at 800-795-3919. We hope that this case study about working capital financing for motels was helpful.