What operating records help a campground buyer get financing?
A lender will want several years of financial statements and tax filings, plus records that explain the seasons: site bookings, occupancy by month, rate sheets, and cancellations. Add expense detail, maintenance logs for the roads, utilities and buildings, and an equipment list. Together they show how the campground earns and what it needs to keep running.
Campgrounds earn in bursts, so a lender will ask how steady those bursts are. Ask the seller for booking records that show demand by month and by site type, and whether seasonal guests, day visitors and shorter stays are growing or shrinking. Bring the statements that match them, so the story and the numbers agree.
Expenses deserve equal attention. Look at utilities, insurance, seasonal wages and repairs, and ask which costs the current owner does themselves without paying a wage. A lender will want the margin after a fair wage for whoever runs the place.
Next, the property. Keep records for water and septic systems, electrical service, roads, washrooms and docks, with dates of work and quotes for upcoming repairs. Lenders also consider the land and buildings as security, so ask what valuation or inspection they will want. Have your accountant check that your projections are realistic. Clear, consistent records often make the conversation with the lender shorter. Cancellation and refund records show how reliable the bookings really are. Organize the records in one folder, labelled by year, before the first meeting.
Key takeaways
- Match booking and occupancy records to the financial statements, month by month.
- Show expenses after a fair wage for the person who will run the place.
- Document the condition of utilities, roads and buildings, with quotes for upcoming work.
- Include cancellation records, which show how firm the bookings are, and recent capital repairs.
Related reading
15 pages on the same subject, grouped by topic.
Financing
Buying
Due diligence
Selling
Sources
This answer is checked against primary sources. Links were last confirmed on the dates shown.
- 01Business Development Bank of CanadaGovernmentWhat is the operating profit margin?
- 02Innovation, Science and Economic Development CanadaGovernmentHelping small businesses get loans - Canada Small Business Financing Program
- 03Business Development Bank of CanadaGovernmentHow to conduct due diligence when buying a business
- 04Business Development Bank of CanadaGovernmentCommercial Real Estate financing and construction financing
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