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FINANCIAL MANAGEMENT

In any business financial planning and accounting are important factors that help judge the fiscal health of the asset and support of strategic decision making. Timely and accurate accounting information, properly presented, allows owners and asset managers to make meaningful business decisions.  Review of historical data is useful  in terms of measuring goals and success, however accounting can play a vital role to achieve future goals and reach alignment with the asset's full capabilities.

MTEL uses The Uniform System of Accounts, endorsed by the American Hotel and Lodging Association to present financial information. The following is a summary of the financial management services MTEL offers:

 

Financial Reporting

  • Profit/Loss Statement and Balance Sheet
  • Monthly Account Reconciliation
  • Bank Reconciliation
  • Statement of Cash Flow & Analysis

Accounts Payable

  • Vendor Invoices
  • Utilities
  • Loan Payments
  • Partner Distribution
  • Electronic/ACH Payment

Reporting

  • Check Registers
  • Open Liability Reports
  • Vendor Aging

Sales

  • Local/State Sales Tax Filing
  • Help Manage Sales and Use Tax Audits

Treasury Management

  • Maintaining Inner Company Balances for Multiple Units
  • Daily/Weekly Sweep of Accounts
  • Cash Flow Projects
  • Assist with Banking Relations

Fixed Asset Reporting

  • Maintaining Fixed Asset Ledger
  • Tax, Book and AMT
  • Preparation of Depreciation Schedules

Payroll Processing

  • Centralized Data Collection
  • Check and Advice Printing
  • Direct Deposit
  • Garnishment Processing
  • New Hire Reporting
  • Third Party Tax Filing and Compliance
  • Reports
  • Exployment Verifications
  • W-2 Reporting
 

 

Both monthly and quarterly reports are prepared for ownership. These reports include an analysis of present, past and projected performance.  The monthly financial statements include balance sheets, cash flow statements and income statements.  A quarterly report is prepared to show and explain deviations in the income statement from the budget, personnel changes, market conditions, sales updates and capital improvement expenditures.

 

MTEL can either perform all of the accounting functions, from disbursements to statement processing, at our corporate office or decentralize any portion of the process to the hotel level. MTEL believes in tight internal and cash controls, combined with strong management responsibility to maximize profitability. 

With an ever expanding and well experienced staff in the hospitality industry, MTEL is competent and knowledgeable in providing services to our clients that will maximize cash flow and return on investment for any investor, for any type and size of hotel property

 

Small Business Administration Loans


Basic 7(a) Loan Guaranty:  The Basic 7 (a) loan program serves as the SBA’s primary business loan to help qualified small businesses obtain financing when they might not be eligible for business loans through normal lending channels. It is also the agency’s most flexible business loan program, since financing under this program can be guaranteed for a variety of general business purposes.  

 

Loan proceeds can be used for most sound business purposes including working capital, machinery and equipment, furniture and fixtures, land and building (including purchase, renovation and new construction), leasehold improvements, and debt refinancing (under special conditions). Loan maturity vary from up to 10 years for working capital and generally up to 25 years for real property

 

All 7(a) loans are provided by lenders who participate with SBA in the 7(a) program.  A key concept of the 7(a) guaranty loan program is that the loan actually comes from a commercial lender, not the Government. Lenders who choose to structure their own loans per SBA's requirements and may receive a guaranty from SBA on a portion of this loan. The SBA does not fully guaranty 7(a) loans. The guaranty which SBA provides is only available to the lender. It assures the lender that in the event the borrower does not repay their obligation and a payment default occurs, the Government will reimburse the lender for its loss, up to the percentage of SBA's guaranty. The guaranty is a guaranty against payment default. It does not cover imprudent decisions by the lender or misrepresentation by the borrower.

 

Under this program, the borrower remains obligated for the full amount due.  In order to obtain positive consideration for an SBA supported loan, the applicant must be both eligible and creditworthy.

 

SBA offers multiple variations of the basic 7(a) loan program to accommodate targeted needs.

 

504 Loan Program delivered through a Certified Development Company (CDC): The CDC/504 loan program is a long-term financing tool for economic development within a community. The 504 Program provides growing businesses with long-term, fixed-rate financing for major fixed assets, such as land and buildings. A Certified Development Company is a nonprofit corporation set up to contribute to the economic development of its community. CDCs work with the SBA and private-sector lenders to provide financing to small businesses. There are about 270 CDCs nationwide. Each CDC covers a specific geographic area.


Typically, a 504 project includes a loan secured with a senior lien from a private-sector lender covering up to 50 percent of the project cost, a loan secured with a junior lien from the CDC (backed by a 100 percent SBA-guaranteed debenture) covering up to 40 percent of the cost, and a contribution of at least 10 percent equity from the small business being helped.

 

Microloan, a 7(m) Loan Program: Microloan 7(m) program provides short-term loans of up to $35,000 to small businesses and not-for-profit child-care centers for working capital or the purchase of inventory, supplies, furniture, fixtures, machinery and/or equipment. Proceeds cannot be used to pay existing debts or to purchase real estate. The SBA makes or guarantees a loan to an intermediary, who in turn, makes the microloan to the applicant.  The microloan program is available in select locations in most states.