Club Premises Finance: How Clubs Borrow Against Their Premises
How clubs borrow against their premises: lender security, core property and members' approval in New South Wales, and how reserves and grants compare.
Business Owners Hub
Club Premises Finance · Core Property · Members' Approval
When a club needs a new roof, a bigger bistro or a second venue, should it spend its reserves, ask members to lend, chase a grant or borrow against the clubhouse? This insight covers how lenders secure and read a club, why members' approval sets the timetable in New South Wales, and how each funding option compares.
Quick Answer
Club premises finance is a loan secured on a club's own land and buildings, used to buy, build, upgrade or refinance its premises, and in New South Wales a sale or lease of core property needs a members' vote first. Lenders take a first mortgage over the clubhouse and read the club's audited accounts and surplus before they read the building, and most projects end up funded by a mix of reserves, a premises loan and, where the club has spare land, a sale or lease of that land. See how we approach licensed venues on our pub and hotel finance page.
Also called: registered club finance, RSL club loan, sporting club premises loan. In banking, a "club loan" also means one loan shared by a small group of banks; that is a different product and is not covered here.
What is club premises finance?
Club premises finance is a loan to buy, build, upgrade or refinance a club's premises, secured on property the club owns or holds on a long lease. The borrower is the club itself, usually a registered club set up as a company limited by guarantee, or a smaller club run as an incorporated association. That makes it business lending to a member-owned venue, not a personal loan to the people on the board.
The clubs that borrow this way include RSL and services clubs, leagues and football clubs, bowling and golf clubs, surf and sailing clubs, cultural and community clubs, and private members clubs in the cities. What they borrow for is familiar to any venue owner: a new roof or air conditioning, a bigger bistro, accessible bathrooms and lifts, a refurbished gaming room, buying the freehold of land the club has leased for decades, or refinancing debt left over from an amalgamation.
On paper a club looks a lot like a pub: a liquor licence, food and beverage trade, functions and often gaming. The difference is ownership. A pub is owned by an operator who can sign for the debt and guarantee it; a club is owned by its members, who elect a board, and the members keep a say over what happens to the clubhouse. Owner-operated venues are covered on our pub and hotel finance page and in the pub and hotel finance guide. Stand-alone reception venues are covered in our function centre finance guide; function rooms inside a club are financed with the rest of the building.
Who lends to clubs, and what security do they take?
Clubs borrow from major banks, non-bank lenders and private funders, and almost every one of them takes a first mortgage over the clubhouse plus a charge over the club's other assets. Major banks tend to prefer larger clubs with a long trading record and a steady surplus. Non-bank lenders take more of the smaller clubs, the clubs part way through an amalgamation and the clubs with mixed or unusual security. Private funders are usually short-term money, for example a bridge while the club waits on the sale of surplus land.
The building itself is a specialised asset. A clubhouse with a bowling green, a gaming room and a large car park has a narrow pool of buyers, so the valuation often reports two numbers: what the venue is worth as a trading club, and what the land is worth for another use. Lenders size the loan off the more conservative reading, and how conservative varies by lender. Our commercial property loans page explains how specialised buildings are valued and geared.
Gaming machine entitlements cannot usually be mortgaged on their own. For a club, gaming sits inside the going concern: the lender values the trading venue with its entitlements attached, rather than lending against the entitlements as a separate asset. How entitlements are treated as security, and the state rules on transfers, are covered in our guide to gaming machine entitlements as loan security.
Does a club need members' approval before it borrows against its premises?
A registered club in New South Wales needs members' approval before it sells, leases or licenses its core property, and the club's solicitor confirms whether a mortgage over that property needs the same vote. At the time of writing, section 41E of the Registered Clubs Act 1976, "Disposal of real property by registered clubs", says a registered club must not dispose of any core property unless three things happen: the property has been valued by a qualified valuer, the disposal has been approved at a general meeting of the ordinary members by a majority of the votes cast, and any sale is by public auction or open tender through an independent agent or auctioneer.
Core property is the real property the club owns or occupies that makes up its premises and the facilities provided for members, plus any property the members declare to be core by resolution. Members can also resolve that a property is not core. The club's annual report must list which of its properties are core and which are not, so the starting point for any loan is last year's annual report.
Source: NSW legislation, Registered Clubs Act 1976, s 41E "Disposal of real property by registered clubs". Read 15 October 2026.
Does a mortgage count as a disposal of core property?
A mortgage is not named in the Act as a disposal, so whether a charge over core property needs a members' vote is a question for the club's solicitor to answer before the loan is signed. The Act defines disposing of property as selling, leasing or licensing it, or dealing with it in any other way the regulations prescribe. The club's own constitution may set a stricter rule than the Act, and many do. From the underwriter's seat, the safe reading is simple: if the loan is repaid by selling or leasing part of the property, core property needs a members' vote, and the lender will want to see the resolution, the minutes and the solicitor's advice before it settles.
What about clubs outside New South Wales?
Clubs in other states work under their own liquor, gaming and associations laws and their own constitutions, so the first question is the same everywhere: what can the board sign on its own, and what needs the members? Buying an owner-operated hotel in Sydney runs on a different approval altogether, the state licence transfer, which is covered in our insight on pub finance in Sydney.
How does a lender assess a club's finances?
A lender assesses a club on its audited accounts, its trading surplus and the quality of its board, and only then on the building. A club's surplus, not its turnover, is the number that repays the loan: a club can take a great deal of revenue through the bar, the bistro and the gaming room and still have little left once wages, maintenance, member benefits and donations are paid.
- Audited accounts. Usually several years, read for the trend in the surplus and in cash, not one good year.
- Income mix. Gaming, food and beverage, membership subscriptions, functions and any rent from tenants or sporting bodies. Heavy reliance on gaming is read as a concentration risk, particularly while the announced New South Wales gaming reforms are phased in.
- Membership. Whether member numbers and visitation are steady, growing or ageing out.
- Governance. Board stability, the tenure of the general manager or chief executive, the regulator's view of the club, and whether any amalgamation talks are under way.
- The building. Deferred maintenance is read as a future cost the loan may end up funding.
The club loans that move quickly are the ones where the board has already answered these questions in a short paper before the first lender sees it.
Should a club use reserves, member loans, grants or a premises loan?
A club should usually fund a project from a mix of reserves, member loans, grants and a premises loan, sized so it still holds a cash buffer once the work is finished. Spending every dollar of reserves on a refurbishment leaves the club exposed to one bad year; borrowing the whole cost when the reserves sit idle makes the repayments heavier than they need to be. The table sets out how each option typically compares.
| Option | What it suits | What it costs the club (indicative) | Approvals usually needed | Risk |
|---|---|---|---|---|
| Club reserves | Smaller works and the club's contribution to a larger project | No interest, but the cash buffer is spent | Board resolution, and whatever the constitution requires | The club is short of cash if trade dips after the works |
| Member loans | Small clubs with loyal members and modest projects | Whatever return the club offers members, plus legal costs to document it | Board resolution and solicitor-drafted terms; the solicitor confirms any fundraising rules | Repayment calls from members at a bad time, and strained relationships if the project runs late |
| Government or community grants | Accessibility, sporting facilities and community spaces | Application time, and often matching funds from the club | The grant body's conditions on use, timing and reporting | Uncertain timing; grants rarely cover a whole project |
| Bank or non-bank premises loan | Larger works, refinancing and buying freehold | Interest, fees, valuation and legal costs, which vary by lender | Board resolution; a members' vote where the constitution or the Act requires it | Repayments rely on the surplus holding up |
| Private funder bridging loan | A short gap before a land sale or a longer-term loan settles | Typically higher than a premises loan, priced for months rather than years | As for a premises loan, plus a written exit | The exit is delayed and the cost keeps running |
| Selling or leasing non-core land | Clubs with surplus land, such as a spare green or car park | Agent, legal and planning costs; the land is gone or tied up for years | Board resolution and the constitution; if the land is core, a valuation and a members' vote | Planning or buyer delays push out the timetable |
Bridging is explained in more depth in our bridging finance guide, and short-term private money on our private lending page. Before a club picks a mix, it helps to know how a lender will read its file.
Passes the lender's first read
- Audited accounts showing a steady surplus
- A board resolution to borrow, with the amount and purpose
- Core and non-core property identified in the annual report
- A members' vote held or timetabled where it is needed
- A written plan for how the debt is repaid
Fails the lender's first read
- Deficit years covered by drawing down reserves
- A project announced before members were consulted
- No clear answer on whether the land is core property
- Gaming carrying the whole surplus with no plan if it falls
- Board or management turnover in the middle of the project
How do small private members clubs and incorporated associations borrow?
A small private members club or incorporated association borrows under its own rules, which decide whether the committee can borrow and charge club property and whether members must approve it first. Many association rules are silent or vague on borrowing, so the first job is to have the club's solicitor read them. Changing the rules usually takes a special resolution at a general meeting, which takes time to call.
Lenders lending to a small club may ask for a members' resolution approving the loan and, where the club's own security is thin, guarantees from committee members, often backed by their own property as security. Committee members should take independent advice before they sign anything personal for a club. Many smaller clubs avoid that altogether and rely on member loans, grants and a modest first mortgage over the clubhouse.
How do clubs fund a redevelopment of their land?
Clubs usually fund a redevelopment by selling or leasing surplus land to a developer, often for seniors housing or apartments, and using the proceeds, sometimes alongside a new clubhouse delivered by the developer. In many deals the non-core land funds the new clubhouse. Where the land is core property, the members' vote and the independent valuation from the approval section above apply, and members can resolve to declare land not core before it is sold.
The club's side of the deal is about timing and cash. The developer's lender will usually want presales before it funds the build, so the club's sale or lease may settle in stages, and the club may need to trade from temporary premises or a reduced venue while work is under way. A short premises loan or a bridge can cover that gap. How the developer's side is funded is covered in our development finance page, the property development finance guide and the glossary entry on development finance.
Where should a club start?
A club should start with a board resolution, its accounts and a clear answer on whether the land is core property, then a valuation and a plan for telling members. The order matters because the members' vote is often the step with the longest lead time.
- Resolve to explore finance. A board resolution naming the project, the likely cost and the funding options under review.
- Gather the accounts. Recent audited accounts, current management accounts and a simple forecast of the surplus after repayments.
- Check the property status. Confirm from the annual report which land is core and which is not.
- Get legal advice early. Ask the club's solicitor what the constitution and the Act require for the loan and any sale or lease.
- Order a valuation. A qualified valuer's report supports both the lender's credit decision and any members' vote.
- Plan the member communication. Members who understand the project before the general meeting are far more likely to support it.
When those pieces are in hand, a broker can take the file to the lenders most likely to fund it. The documents a hospitality lender usually asks for are listed in our hospitality loan pack. You can check eligibility or read more on the Business Owners Hub.
A club borrowing against its premises is read on its surplus, its governance and its security, in that order. In New South Wales, selling, leasing or licensing core property needs a qualified valuation and a members' vote, and the club's solicitor confirms whether a mortgage is caught too. Most projects end up funded by a mix of reserves, a premises loan and, where the club has surplus land, a sale or lease of that land.
Key takeaway: settle the accounts, the valuation and the members' approval before you approach a lender, so the vote is not the last thing holding up settlement.Frequently Asked Questions
A registered club in New South Wales is a club that holds a club liquor licence and is governed by the Registered Clubs Act, usually run as a not-for-profit company owned by its members. RSL clubs, leagues clubs, bowling clubs and many sporting clubs fall into this group. For finance, what matters is that the club itself borrows, a lender usually takes a first mortgage over its premises, and the members keep a say over its core property.
A private club can get a loan for its premises when it owns the land or holds a long lease, and when its rules let the committee borrow and charge club property. Lenders read the club's accounts, its surplus and its membership trend, and may ask for a members' resolution or guarantees from committee members. A valuation of the clubhouse usually sets how much can be borrowed.
Clubs finance a new clubhouse with a mix of their own reserves, a premises loan secured on the club's land and, where the club holds surplus land, the proceeds of selling or leasing it to a developer. Where a developer is involved, its own development finance and presales usually set the timetable. In New South Wales, selling or leasing core property needs a members' vote first.
A club loan and a syndicated loan are both large loans shared between several banks: in a club loan a small group of banks lends together on equal terms, while a syndicated loan is arranged by a lead bank and sold down to a wider group of lenders. Neither is the same as a loan to a sporting or registered club. A loan to a club for its premises is ordinary commercial property lending secured on the clubhouse, which is what this insight covers.
A club can rarely borrow against its gaming machine entitlements on their own; lenders usually take them as part of the security over the whole trading venue. How entitlements are treated as security, and the state rules on transfers, are set out in our gaming machine entitlements guide. The club's solicitor confirms what its own constitution allows.
FBAA Accredited
