U.S. Financing for Mexican Resorts: Colebrook’s Perspective on a Cross-Border Opportunity
At Resort Trades, we serve as the Timeshare Resort Professional’s go-to resource for industry intelligence. We’re always seeking insight into the most pressing topics shaping our business. One of those topics? Resort financing—particularly when it crosses the border into Mexico.
To dig into the real challenges and opportunities of funding Mexican vacation ownership resorts, we spoke with Bill Ryczek, partner at Colebrook Financial Company. A veteran of resort lending and active participant in ARDA, Bill brought his decades of experience to a candid conversation about legal hurdles, cultural differences, and the cautious optimism that guides his company’s approach.
In the world of timeshare resort financing, few firms have the longevity, reputation, and adaptability of Colebrook Financial Company. Since 2005, the company has quietly made inroads into one of the most complex and under-financed segments of vacation ownership: the Mexican resort market. While the challenges are many—from legal ambiguity to cultural differences—Colebrook has demonstrated that, with the right strategy and partners, it is possible to extend U.S.-style receivables lending south of the border.
Here is what Bill had to say:
Why Mexico?
The rationale for venturing into Mexico is surprisingly straightforward: it’s an inversion of the U.S. market. In the States, independent developers are few and financing is plentiful. In Mexico, independent developers abound, but financing sources are scarce. This gap presents an opportunity for U.S.-based lenders who are willing to understand—and adapt to—the unique dynamics of doing business in a foreign environment.
That said, Colebrook’s venture hasn’t been without obstacles. The legal system in Mexico operates on a very different set of principles than in the U.S., and while Colebrook gets legal opinions stating that its loan documents are enforceable, they’ve never had to test them in court. In fact, Colebrook has never experienced a loan default in Mexico—a testament to the conservative approach they’ve adopted.
Cultural differences also complicate transactions. Business in Mexico is typically conducted at a slower pace than in the U.S., and communication patterns differ significantly from what U.S. lenders are used to. In one case, Ryczek recalled receiving a response to an email a year after it was sent, with apologies for the delay. The recipient had been very busy. Additionally, Mexican developers are often averse to the extensive documentation that accompanies U.S. loan closings. As Ryczek noted, “You close a loan in the U.S., you get a big pile of paper. They’re not used to that in Mexico. Where possible, we limit the documentation.”
Developer Psychology and the Need for Financing
Another hurdle is that many Mexican developers have learned to operate without financing. With limited access to outside capital, they’ve relied on cash sales and high down payments, shaping their sales models accordingly. Salespeople are trained to secure large initial payments, often using multiple credit cards per transaction. While effective to a point, this model limits market access and affordability for many potential buyers.
Where financing becomes attractive is in two key areas: development and sales expansion. Developers may seek funding to build new units or amenities or expand existing amenity packages. More commonly, they want to finance receivables to lower the upfront cost for buyers, thereby expanding their customer base.
Colebrook’s preferred structure utilizes a U.S.-based receivables trust, to which the developer assigns its receivables. The ownership of the trust becomes the collateral. This structure avoids the need for direct Mexican legal enforcement while also benefiting developers by minimizing international tax liability. U.S. buyers paying into a U.S. trust means no cross-border interest taxation.
The State of the Market
Though their first loan in Mexico closed in 2005, Colebrook has averaged less than a deal per year since then. They prefer to start small, lending $3–5 million on an initial deal, and then scaling up based on performance and trust. The ideal client is not a startup but an established developer with a long-standing reputation, diversified business interests, and an existing receivables portfolio.
The portfolios themselves often contain highly favorable characteristics from a lender’s perspective. Down payments are typically 30–40%, significantly higher than the U.S. average of 10%. Loan terms are shorter, often between 12 and 60 months. The catch? Interest rates are often low—sometimes as low as 0%—which makes portfolio financing more difficult due to negative arbitrage. Credit applications and FICO scores are rarely obtained.
Colebrook typically accepts soft FICO scores and then requires full credit applications and credit scores for future originations.
The Bigger Picture: Trends in Timeshare Finance
Colebrook also provides financing in the Caribbean and remains deeply embedded in the U.S. market. Its recent lender education seminar, featured in the July 2025 issue of Resort Trades, shed light on two major trends shaping the industry: resale financing and repurposing of aging resorts.
Speakers included Debbie Ely of Vacation Club Loans, who discussed the rise of secondary market financing—particularly in high-profile brands like Disney Vacation Club—and Scott McGregor of Lemonjuice Solutions, who addressed the growing role of repurposing as many resorts age out of viability.
According to Ryczek, the timeshare industry now operates across several distinct segments: branded developers, independents, travel clubs, resale facilitators, and companies repurposing resort projects. Each has its own financing needs, and Colebrook has positioned itself to serve each segment.
For branded developers, they offer HOA loans. For clubs and independents, receivables lending. For resale markets, they support transactions through their affiliated entity Vacation Club Loans. And for repurposing projects, Colebrook has launched a dedicated financing product.
Adapting to Change
Looking forward, Ryczek remains cautiously optimistic. He acknowledges the disruptive impact of Wall Street on some aspects of the business, particularly where cost-cutting pressures affect service levels. But he also sees promise in the club model, where operators acquire inventory from distressed HOAs and build flexible usage systems.
And while many legacy resorts struggle, some—particularly those in prime destinations like Longboat Key, Florida—are thriving with second- and third-generation owners. Others are finding new life through resale or repurposing, transforming into condominiums, apartments, or vacation rentals.
Colebrook’s message to potential partners is simple: Call us. Email us. Let’s talk. “We still use the telephone,” Ryczek quipped. “When it rings, we answer it.”
To learn more about Colebrook Financial Company, visit colebrookfinancial.com.
For advertising or media inquiries, contact Marla Carroll at Marla@TheTrades.com or 931-484-8819.
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Sharon Scott Wilson is the lead creator and curator for Resort Trades Media Group (ResortTrades.com). Visit ResortTrades.com/eMagazine to subscribe to The Free Weekly Resort Insider.
