Know your curve
Most seasonal businesses know roughly when the quiet months fall, but fewer map it month by month. A simple twelve-month cash-flow forecast showing expected receipts, wages, rent, VAT and loan repayments will show exactly where the pinch points are and how deep they go.
Fund the gap before it arrives
Lenders are far more comfortable funding a business that applies in a strong month with a clear plan than one applying in the middle of a shortfall. Arrange facilities while your bank statements look healthy.
Facilities that suit seasonal trade
- Revolving credit facilities that you draw and repay as needed
- Merchant cash advances repaid as a percentage of card takings
- Short-term unsecured loans timed to the low season
- Stock finance ahead of a busy period
Watch the tax calendar
VAT quarters and corporation tax deadlines that fall in quiet months are a common cause of stress. HMRC Time to Pay arrangements exist, but planning ahead or ring-fencing tax money in a separate account is usually cheaper.
Review every year
Seasonality shifts as a business grows. Revisit your forecast annually and check that the facilities you have still match the pattern of your trade.
Related service: Business loans, invoice, asset and bridging finance
This guide is general information and not financial advice. B2B Loans UK acts as an introducer only. All finance is subject to status, affordability and lender criteria.