Mount and Blade 2: Bannerlord – How to Form and Use a Caravan

Forming a caravan is a great way to invest your money in Bannerlord. This article will take you through the pros and cons of forming a caravan and guide you how to form it in the first place.

This guide is a part of the complete Bannerlord guide covering most of frequently asked questions for the game.

What are the benefits of a caravan

By paying a one-time fee you can get a caravan which will passively earn you gold each day. It’s not a get rich quick scheme but after a while the initial payment will be paid off and from there it’s only profits. However, investing in a caravan is not risk-free. The caravan can be attacked by bandits and enemy factions, which will destroy the caravan and ruin your investment.

Income from the caravan will start out slowly after you set it up as it needs time to get started. It might even net a negative income in the beginning because it starts with no items in stock. This means it has to go to a town and buy some items to sell in another town for a profit.


  • Some trade perks can improve your caravans
  • You can use caravans to upgrade your companions skills
  • You can use caravans to increase relationships with various notables
  • You cannot give troops to your caravan

How to form a caravan

There are some requirements to start a caravan. You need to pay the artisan 15.000 denars for the weak caravan or 22.500 denars for a reinforced caravan. You also need an idle companion preferably with a high trade skill.

Pick a city

The first thing you need to consider is where you want the caravan to be based. There are multiple things to take into consideration before deciding.

If you are part of a faction you might want to form it inside your allied territory as it will get hunted down by enemy lords. If your caravans town is under siege it will also not generate any income for you.

Talk with an artisan or merchant to form a caravan

Bannerlord town merchant location
Bannerlord town merchant

When you have decided which city you want it to be based in it’s now time to pay for the caravan. Enter the town and look in the upper-right corner. There you see different notables. If you hover over their name it will show their type. Find someone with the artisan or merchant type and talk to them. (They will have their trade after their name for example the potter) They will give you the opportunity to form a caravan for 15.000 gold. You can also take the stronger caravan option and pay 22.500 gold instead. When paying for the caravan the trader will ask you which companion you want to assign to the caravan. You should choose the companion with the highest trade as they will make higher profits.

Once it is formed it will automatically wander around the map to buy and sell items for a profit. That’s the end of this guide. You have now learned how to form a caravan in Bannerlord and should be all set for profit.

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