Key Takeaways
- Introduces term loans and credit lines up to $10,000,000 for small travel industry businesses.
- Requires $10,000 monthly revenue, six months of operation, and a minimum credit score of 550.
- It aims to support struggling travel businesses post-pandemic, facilitating recovery and increased profitability.
San Francisco, CA–WeTravel, a travel booking, and payments solutions company, announced the launch of a new type of loan called WeTravel Growth Capital, targeted at small travel industry businesses.
WeTravel’s Financial Offering
The organization’s website says that the company offers term loans and lines of credit of up to $10,000,000, repayable between six and thirty-six months (among other financing options).
They cater only to businesses in the travel industry, including “group tour operators, custom travel providers, travel agencies, destination management companies, retreat hosts, educational travel organizers, and more.”
Applicants must pass the following criteria to be eligible:
- Prove an average of $10,000 in monthly revenue,
- To have operated for over six months
- Have a minimum credit score of 550
CEO’s Statement
“It has been a difficult season for the travel industry, especially for small, local businesses and operators,” said Zaky Prabowo, CEO and Co-founder of WeTravel, in the release. “As we emerge into a new season, WeTravel is providing additional support to help travel businesses successfully recover and increase profitability with access to the money they need.”
According to a report, 65% of the company’s clients are small businesses.
“As a separate but complementary offering to our platform, offering Growth Capital aligns with our business’s founding mission to provide opportunities for any travel business to operate a business with the assistance of travel-specific technology successfully,” Prabowo added in the report.
Financial Growth
Another report highlights that the organization recently announced a Series B funding round of $27 million (adding up to a total of $34 million) after experiencing rapid growth after the pandemic. A part of the funding was directed towards adding travel fintech solutions to their arsenal.
Transaction volumes have risen by 300%, and revenues are presently at 3x compared to pre-pandemic times.
WeTravel, established in 2014, is a platform on which service providers in the tourism industry can offer their products — stays or experiences in 80 countries — and accept payments. Clients also have the option to embed listings, additional tools, and payment gateways on their own websites or various platforms.
What We Think
WeTravel’s initiative to offer Growth Capital fills a critical gap for small travel businesses, providing vital financial support in a challenging post-pandemic climate.
With eligibility criteria focused on revenue, operational history, and credit scores, it targets businesses struggling to access traditional financing.
As the travel industry faces a gradual resurgence, this tailored financial offering could significantly aid small operators in rejuvenating their businesses and driving growth. WeTravel’s commitment to bolstering the sector with specialized financial solutions aligns with the industry’s pressing needs for recovery and adaptation.
