How money moves in this industry
Refurbishments and marketing often happen before a peak season. Low-season rent, wages and maintenance still need to be paid.
A practical example
A motel owner refurbishes rooms in the quieter months and needs to bridge the cost until occupancy recovers.
This illustrates a funding need; it is not a lender eligibility claim or a recommendation to borrow.
Common reasons to explore finance
- Room refurbishment
- Vehicles or tour equipment
- Property purchase
- Seasonal working capital
Equipment and assets that may be financed
Asset finance depends on the lender's product, the asset, its condition and the proposed term. Examples in this industry include:
- Accommodation property
- Furniture and equipment
- Tour vehicles
Questions to prepare for a lender discussion
These are useful preparation questions, not a statement that any particular lender accepts this industry.
- What are occupancy and booking trends by season?
- Are deposits refundable?
- How will works affect trading capacity?
Insurance and business continuity
Finance is one part of a business decision. This industry may also need to consider property, public liability, business interruption cover, depending on its activities, contracts and legal obligations. Our business insurance guide explains the concepts and links to official Australian sources.