Quick answer
Tourism and caravan park loans fund the purchase, refinance or improvement of businesses such as caravan and holiday parks, motels, B&Bs and tour operators. Because income is seasonal and the property and business are intertwined, lenders assess trading earnings closely. Ownright Custom Finance arranges tourism finance Australia-wide.
Key points
- Covers purchases, refinances, upgrades and working capital for tourism operators
- Lenders look closely at trading history, occupancy and seasonality
- Property and going-concern business are often valued together
- Specialist solutions exist for parks the banks avoid
- Suits
- Caravan and holiday park owners, motel and accommodation operators, tour businesses
- Security
- The property and business assets, sometimes extra security
- Income test
- Trading performance rather than only personal income
- Australia-wide
- Yes
What are tourism and caravan park loans?
Tourism and caravan park loans cover the property and business finance needs of operators in the accommodation and visitor economy. That includes caravan and holiday parks, motels, B&Bs, farm stays, tour operators and similar businesses. The finance may be used to buy a park, refinance an existing one, fund upgrades or provide working capital to carry the business through the quieter months.
These deals sit between commercial property lending and business lending. The land and buildings matter, but so does the trading business, which makes the assessment different from a standard commercial property loan.
Who uses this type of finance?
- Buyers moving into a caravan or holiday park for the first time
- Experienced operators acquiring a second park or expanding
- Owners refinancing a park after a lender has changed its appetite
- Motel and guesthouse operators upgrading rooms and facilities
- Tour and experience operators investing in assets and premises
- Regional entrepreneurs turning a property into a tourism venture
What makes tourism lending different?
| Factor | Why it matters |
|---|---|
| Seasonality | Income peaks and dips, so lenders look at full-year cash flow |
| Going-concern value | Property and business earnings are often valued together |
| Site and room mix | Permanent, long-stay and tourist sites perform differently |
| Location and access | Regional and remote locations affect demand and resale |
| Management | Owner-operator experience can count for a lot |
| Regulation | State rules for parks and accommodation vary |
Several states have specific legislation for caravan parks and residential land-lease communities, so the legal setting depends on where the park is. Lenders will look at it, and so should you.
What do lenders look at?
Trading history. Profit and loss statements, tax returns and BAS, ideally covering several seasons. The guide on BAS and financial statements explains how to gather them.
Occupancy and income mix. How much comes from permanent sites, tourists, cabins, onsite vans and extras such as shops or fuel.
The property. Condition, compliance, infrastructure, flood or bushfire exposure and any planned upgrades. See commercial LVR and valuation explained for how lenders approach values.
Your experience. Prior operating experience, or a plan to bring in management, helps when you are new to the sector.
Your contribution. The deposit, any other security and your overall financial position.
How are seasonal cash flows managed?
Repayments have to be affordable through the slow months, so lenders often check the trough, not just the average. Options that can help include interest-only periods, working capital buffers or a seasonal business loan alongside the main facility. A well-planned buffer built during peak season often matters as much as the loan structure itself.
How Ownright approaches tourism and caravan park finance
Trevor Scott and the Ownright team enjoy deals with character. A park in a regional coastal town, a motel with potential, an operator who has outgrown their lender: these are the kind of situations where a standard bank application can stall. We ask for the full story, then look at lenders who understand tourism and accommodation property, including those that some brokers never approach.
We also think about the surrounding finance. A park purchase might come with commercial property loan needs, equipment for cabins or amenities, and a working capital line. If the current loan needs a fresh home, our commercial loan refinance page covers it. We work Australia-wide, including regional and remote Australia.
An illustration
Illustrative scenario only. A couple wants to buy a small coastal caravan park from a retiring owner. Trading is strong in summer and school holidays but quiet in winter. A broker could prepare several years of trading figures, show the mix of long-stay and holiday sites, and approach lenders that fund tourism assets, with a repayment plan that considers the quiet months.
Mistakes to avoid
- Applying without several seasons of trading evidence
- Assuming the valuation will match the asking price
- Underestimating compliance and upgrade costs
- Ignoring the winter cash flow when choosing a structure
- Not checking the state rules that apply to the park
Documents to have ready
- Profit and loss statements, tax returns and BAS
- Occupancy and booking reports
- Contract of sale or property details
- Site and accommodation schedule
- Asset and liability summary and photo ID
See the documents guide and how commercial property loans work for more. The commercial loans hub lists related options, including pub and hotel loans and hospitality business loans.
How do lenders value a going concern?
A tourism property is often valued on its trading earnings as well as the land and buildings, which is why accurate and consistent financials matter. Valuers may look at the earnings before interest and tax, compare similar sales and consider the quality of the infrastructure. A park with strong books, well-kept facilities and a clear income mix tends to be easier to value with confidence. If the books are messy, tidy them before the valuer visits.
What about flood, fire and insurance?
Many tourism properties sit near coasts, rivers or bushland, and lenders pay attention to natural hazard exposure and the availability of insurance. Expect questions about cover, claims history and emergency plans. Having your policy and recent evidence of compliance ready can prevent last-minute delays. Rules and risks differ widely by region, so we discuss local factors with you at the outset.
Can I finance a tourism business that is not property-owning?
Yes. Operators who lease their premises or run tours, experiences or hire businesses can look at business loans, equipment finance or a working capital loan. Without property as security, lenders put more weight on cash flow and trading history, which is where thorough paperwork helps.
How long does tourism finance take?
It depends on the lender, the property type and how quickly the paperwork arrives. Tourism deals often involve valuations, trading reviews and sometimes site inspections, so they usually take longer than a simple equipment loan. Having several years of financials, a clear site schedule and insurance details ready makes a real difference. If a purchase has a contract deadline, tell us at the start so we can plan the timetable honestly.
Ready to fund your tourism business?
Sounds like you’re looking for caravan park or tourism finance. We’re the lending experts in these properties and the seasons that come with them, so click the button below and see if you qualify.
How it works, step by step
- 1
Step 1
Tell us about the park or business, the trading history and your goal.
- 2
Step 2
We review the numbers, seasonality and security, and spot what lenders will query.
- 3
Step 3
We approach lenders that fund tourism and accommodation properties.
- 4
Step 4
Valuations and documents are completed, then funds settle.
Frequently asked questions
Can I get finance to buy a caravan park?
Yes, lenders do fund caravan and holiday park purchases, although the pool is narrower than for standard commercial property. They typically assess trading performance, site mix, condition, location and your experience. A deposit is usually expected. We help work out which lenders are comfortable with that type of park.
How do lenders deal with seasonal income?
They usually look at trading over a full year or more, often several years, to see the peaks and troughs. Strong seasons can balance quieter months, provided cash flow covers repayments throughout. Repayment structures and working capital buffers can help; we discuss what suits your calendar.
What is the difference between a park with permanent sites and one with holiday sites?
Long-stay or permanent sites can offer steadier income, while tourist sites can earn more in peak periods but fluctuate. Some parks also operate under residential park or land lease rules, which differ by state. Lenders look at the mix, so we get the details of your site types early.
Can I refinance an existing tourism business?
Yes. Owners refinance to move away from a lender that is no longer comfortable, to consolidate debts, or to release funds for upgrades. Lenders look at recent trading, the property condition and any arrears. We look at refinance options Australia-wide, including when a bank has declined.
Is a valuation needed for tourism finance?
Lenders generally require a valuation, and for going concerns the valuer often considers both the real estate and the business earnings. Specialist valuers are common for tourism assets. Valuation outcomes can differ from owner expectations, so we prepare the file to give the valuer the full picture.
Can I finance upgrades like cabins, amenities or glamping?
Often, yes. Lenders may fund improvements that are likely to lift income, such as new cabins, amenity blocks or powered sites, sometimes with staged drawdowns. They will want to see budgets, approvals and the expected income uplift. Small items may be better suited to equipment finance.