Henry Howard Finance

How asset finance can support caravan park owners

Asset finance arrangements are providing an attractive alternative for caravan park owners struggling to secure finance, according to Henry Howard Finance.

The comment comes as the traditional caravanning season comes to an end and at a time when park owners are looking to invest in new facilities and better experiences for visitors.

The specialist commercial finance provider felt that caravan park owners often faced difficulties in securing financial support for these investments from traditional lenders due to the seasonal nature of caravan park income.

However, it added that the commercial lending market had evolved to fill the gap left by stricter lending criteria.

“Many traditional lenders, such as banks, shy away from supporting businesses with irregular incomes, such as caravan parks,” said Dave Smith, account manager and caravan finance specialist at Henry Howard Finance.

“As SME finance specialists, we know this can be a significant barrier to growth for park businesses that need to keep making off-season investments, but don’t want to pay a significant amount of money upfront.

“As an independent finance house with its own capital – as well as access to numerous specialist lenders – Henry Howard Finance has an appetite to lend to almost all types of caravan sites and leisure parks.”

Henry Howard felt that asset finance was a simple and cost-effective way to purchase the equipment or assets a business needed to grow or diversify.

This meant owners could access finance to cover the costs of new static caravans through to multi-use sports and games areas.

“Every six to eight years, caravan park owners seek to replace their static caravans with many placing orders at trade shows this autumn that will be delivered in time for Easter 2019,” added Dave.

“It’s important they know there is a range of flexible finance options out there.

“We wouldn’t rule out lending to new owners of an existing park or a park seeking to expand its footprint ahead of the next holiday season.”

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