Many travel agency owners run into financial trouble not because they seek funding, but because they rush the process or miss critical details when choosing a lender. Treating a loan as a quick fix instead of a long-term strategy often leads to higher costs and mismatched terms, especially when financing decisions are made under pressure. Speed can be tempting, but lenders that prioritize fast approvals over transparency may hide fees or repayment structures that create problems later, so clarity should always come first. Seasonal cash flow is another common blind spot, as travel agencies experience peaks and dips that rigid repayment schedules fail to accommodate, making flexibility essential for stability. Working with lenders who lack industry-specific experience can also be costly, since they may not understand commission timelines or revenue cycles and offer terms that don’t align with how travel businesses actually operate. Finally, focusing only on interest rates or low monthly payments can be misleading, because those numbers don’t reflect the true cost of capital. Evaluating the full repayment picture, including fees and long-term impact, helps ensure financing supports growth rather than creating strain. With thoughtful planning, transparent partners, and a clear understanding of your business model, funding can become a powerful tool that strengthens your agency instead of putting it at risk.
source: https://working-capital.com/articles/mistakes-travel-agencies-make-when-choosing-lenders/
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