AllotCap finances hotel allotment commitments for DMCs and travel wholesalers. Trade credit insurance on every deal. Capital deployed in 7–14 days.
You negotiate great hotel rates but can't fund the deposits. Banks want hard assets. Factors want delivered-goods receivables. Neither fits the allotment model. AllotCap is purpose-built to underwrite the deal structure DMCs actually operate in.
Hotel allotments are intangible, seasonal, and relationship-dependent. Traditional lenders can't underwrite what they can't repossess.
Invoice factors need delivered-goods receivables from creditworthy obligors. Pre-season hotel commitments don't qualify.
Every dollar locked in a hotel deposit is a dollar you can't use to close the next deal. Growth stalls when working capital is frozen.
Enter your allotment deposit amount. We'll show you the financing cost, insurance premium, and how much working capital you free up.
Tell us about the hotel contract, allotment size, deposit required, and season dates. We assess the deal, the hotel, and the booking outlook.
Day 1We structure the financing and place trade credit insurance through a major insurer. No insurance, no deal—this is a precondition, not an add-on.
Days 2–7Funds advance directly to the hotel on your behalf. You secure the allotment without draining your balance sheet. Repay as bookings convert to revenue.
Days 7–14Every deployed invoice is insured through Allianz Trade, Atradius, or Coface. On default, the insurer pays 80–90% of the insured value. Maximum uninsured exposure: 10–20% of deployed capital.
Contracted hotel rooms carry recoverable economic value. In default, allotments can be resold, reassigned, or cancelled with partial refund depending on hotel contract terms.
Realistic worst-case loss is capped at a fraction of deployed capital. More like senior secured lending than venture exposure.
Regional operators negotiating hotel allotments directly with properties, selling to OTAs, tour operators, and corporate buyers. $5M–$100M revenue.
Destination-focused operators with direct hotel relationships and seasonal cash flow patterns. Concentrated in Mediterranean, Gulf, and Southeast Asia.
Larger intermediaries purchasing room blocks on allocation before travel season. Same cash flow problem at greater scale.
Smaller platforms in growth markets building direct hotel supply. Strong demand-side traction but underdeveloped balance sheets.
Submit your deal details and get a financing quote. Or reach out directly—we respond within 24 hours.