A megatrend in our industry is the emergence of “Glamping” which is defined in Wikipedia as “… a style of camping with amenities and, in some cases, resort-style services not usually associated with “traditional” camping. Glamping has become particularly popular with 21st-century tourists seeking the luxuries of hotel accommodation alongside “the escapism and adventure recreation of camping.” Consequently, a big trend in our industry is to install cabins and yurts to offer a “glamping” experience which also increases revenue. To facilitate this expansion, our company is offering OHI members the following 2 financing opportunities to prepare for the expansion:
- We offer USDA loans, SBA 7(a) loans & SBA 504 loans to finance a new RV Park or to refinance existing business debt with the option to add equipment, improvements and working capital. If you decide to refinance, you will enjoy a fully amortized loan for 25 years for SBA loans and 30 years for USDA loans. Additionally, when you refinance, you can include upgrades to your RV parks and campground including cabins, yurts, tiny homes and other improvements and equipment such as IT equipment to improve your customer’s glamping experience!
- We offer equipment financing to finance cabins, broadband, Direct TV, golf carts, landscaping equipment, kitchen equipment and/or any equipment needed to operate your RV park and campground. The following is a list of 5 key benefits of leasing equipment:
- No Need to Refinance Your Mortgage – You can make significant purchases and improvements to your RV park and campground without having to refinance your existing mortgage. A lease is a separate transaction where the equipment being financed is initially owned by the leasing company and rented by the lessee. Once the final lease payment is made, the ownership passes from the lessor to the lessee.
- Conserve and Control Cash. Equipment leasing saves your working capital & bank lines for day-to-day expenses, expansions, or unexpected expenses. A lease will provide a pre-determined monthly line item to help you budget more effectively. With predictable monthly expenses you can develop long-term plans with confidence and get your RV park and campground set up with the equipment you need, while keeping your cash flow available for other expenditures.
- Upgrade Outdated Equipment. Equipment leasing helps you stay on top of the latest advances in equipment and technology. The many exhibitors at the OHI’s OHCE offer new products and features every year to improve your RV park and campground.
- Tax Benefits. Lease financing presents your RV park and campground with potential tax benefits. In many cases, leasing provides your RV park and campground with a full deduction of lease payments against current earnings. It is a great idea to check with your tax advisor to determine the benefits for your RV park and campground.
- More Attractive Balance Sheet. Monthly lease payments are viewed as a RV park and campground expense instead of long-term debt. Having less debt on your balance sheet helps you secure financing to fund other needs for your RV park and campground.
Ultimately, a few simple rules of thumb may help you decide to lease or pay cash. If your equipment requirements are relatively small and you have the money, just buy it to save the additional cost. However, if you require a substantial amount of equipment, equipment leasing may be a better option. Why tie up a large amount of cash especially when you can keep the money as a buffer or use that money to grow your RV park and campground in other ways.
In summary, our company offers all major business financing options: USDA loans, SBA 7(a) loans, SBA 504 loans & equipment financing. Since every RV Park and campground owner is in a unique situation, we encourage you to contact Paul Bosley, Business Finance Depot’s Founder. by emailing paul@businessfinancedepot.com or by calling (800) 788-3884 to discuss your situation and how we can assist you by providing the financing that will work best for you!
