Holiday Parks & Glamping Finance

Hiring purchase may be the best option if you require new equipment or facilities for your holiday park or camping site. We recommend a hire purchase in instances where a company definitely wants to own the item at the end of the term, often where the asset has a significant usable lifespan, a high residual value and will not need to be upgraded. For example, facilities like glamping pods, hot tubs and more. Hire purchase usually involves paying the VAT and a deposit up-front, followed by fixed monthly payments. The final option to purchase is guaranteed for a nominal fee, transferring ownership of the asset to the customer.

Equipment leasing allows a business to acquire hard or soft assets without the upfront costs associated with large purchases. A lender purchases the item, and the business then leases it through fixed monthly payments over an agreed term.

Typically, asset finance is provided for high–value ‘hard’ assets such as machinery, equipment, or vehicles, but Portman also arranges asset finance for ‘soft’ assets such as IT, fitness, catering, or vending equipment, as well as premises fit-outs, furniture or even air-conditioning. Making it a perfect option for holiday parks needing new IT equipment for the administration and office side of the business or offering a diverse menu and eatery that keeps guests on site.

Business loans are a way of borrowing money, which is repaid in monthly instalments, including interest, over an agreed term. Business loans are a common way to help smooth out cashflow fluctuations and take opportunities where otherwise they could be missed due to a lack of working capital. For example, you may need to grow your on-site team to keep the day-to-day running smoothly but don’t yet have the cash flow to hire new starters without compromising elsewhere. 

Business loans can be secured or unsecured. Portman typically provides unsecured loans, which can be more flexible and do not require collateral but are likely to require a personal guarantee. Secured loans are tied to an asset which the lender can claim ownership of if repayments are not made. These may be used in equipment refinance deals.

New holiday parks or glamping sites often need an injection of finance to get them off the ground. Start-up loans for new businesses allow you to focus on running your site and bringing in customers, confident that you have the facilities, team and equipment you need without the large initial outlay.

Using finance for equipment means preserving the credit card or overdraft for contingency and operating expenses when the unexpected happens.

If you recently bought a high-value item outright but would now prefer to have financed it, we can help with a sale-and-lease-back agreement. If the item is less than 3m old, give us a copy of the invoice, and we will calculate the current value. After a few checks and acceptance of the term and monthly repayments, we can give you the cash equivalent of the invoice to put back into the business. You’ll then make fixed monthly payments, including interest, whilst your asset earns money.

Suppose your business owns high-value assets that are not currently in finance, subject to a valuation. In that case, it is also possible to use them as security for a loan, with lenders offering a cash loan up to a % of the asset’s value.

Recovery Loans ensure your glamping or camping business gets back on its feet after the long-term effects of the pandemic and subsequent supply chain disruption. Businesses with turnovers up to £45m, including those who have previously benefited from the government’s CBILS, BBL or RLS, can apply.

Recovery Loans can be used for any legitimate business purpose or simply to provide cash flow. Rates are capped, and the government guarantees 70% of the outstanding balance. This gives added security to lenders who can now consider finance for businesses that may have previously found it difficult to obtain.

Up to £2m can be borrowed on terms from 2 to 6 years. Your personal private residence cannot be taken as security.