Travel Agency Business depends a lot on the working capital. On the one hand, they need to offer 30+ days credit period to the corporates as per their credit policy and on another side, they need to pay the amount within 7 days to the travel aggregators and airlines they work with. This creates a huge gap in the working capital and travel agencies need to look for a Travel loan for business to grow their business and meet their working capital needs as without enough capital they can’t book any more business.


Earlier, travel agencies had to look for personal contacts to raise money as traditional lenders were not keen on lending to them, this resulted in a lot of problems as this was neither scalable and even the rates charged were astronomical. However, times have changed now and while traditional lenders still take a lot of time and avoid giving travel loan or the loan to travel agencies, there are digital lenders who are helping travel agencies to grow. This has resulted in a healthy ecosystem for travel agencies to grow.


Here are our top 6 tips for travel agencies to help them get a business loan for travel agency faster.


  • Keep it Digital. Digital lenders welcome travel agencies as they look at their transactions with online aggregators and provide them a loan basis that. The new age lenders look for a digital trace of transactions in order to analyze and help the travel agencies with credit, so prefer dealings with aggregators who maintain a digital ledger and share access to the same, this may be your key to getting unsecured business loan for travel agency.
  • Maintain a Good Credit Score. While the digital lenders access the travel agencies on the basis of their transactions with the travel aggregators, they also look at  other parameters to build overall profile of the business and a good credit score is an important criteria, in fact it has become a basic hygiene, so while the lenders may access you on the business transactions, they will still look for a good credit score to give you offers for travel loan.
  • Maintain Cash Flow and Records. Having a record of cash flow is mandatory as the lenders will analyze if travel the agency could pay them back without any hiccups. In order to create the underwriting scorecard, they will access if the agency has enough cash flow to support the loan amount they are looking for. Invest in a good accounting system and ensure that the business has sufficient cash flow in their books.
  • Choose the Right Clients. Every travel agency wants more clients. However, it is important for them to choose the right clients, look for the profile of clients and take feedback from the market. If a client has a bad reputation of not making payments on time, it may be worthwhile to avoid them. Also, choosing the right clients will help travel agencies to opt for new age credit instruments like invoice discounting, whereby they can submit the invoice raised to large corporates to the digital lenders who will then pay you the amount as invoice discounting and the travel agency can pay it back once they receive their payments from the corporate. 
  • Keep your Banking and Taxation Digital. Keeping your banking and taxation documents and login details handy will help you to stay ahead of the curve when it comes to applying for a business loan for the travel agency as the entire process of applying for a travel business loan with the digital lenders is online and if the travel agency is able to access its bank account and other details online, it smoothens the process and one may get a loan decision almost real time as well.  
  • Choose a Digital Lender. While traditional lenders are not keen on providing travel loans and ask for multiple documents, collaterals to pursue any loan for travel agencies, there are digital lenders like Indifi, who treat travel agencies on priority by having a specific travel loan product in their portfolio and help them get unsecured business loans basis their transactions with the travel aggregators. Thus, we recommend looking for a right digital lender that has a travel loan in their portfolio to make your travel loan journey quick and simple.


Published by Mohsin Ahsan