Seasonal businesses face a cruel timing problem: the biggest expenses arrive before the season and the biggest revenue arrives during it. The fix is capital in the right month and repayment that follows the sales.
When to apply
Lenders average your last three months of deposits. Apply at the end of a strong season and the average is high; apply at the end of the off-season and it is low. The best window for most seasonal owners is the last month of peak or the month right after, funding the next season in advance.
Repayment that tracks revenue
Revenue-based financing remits a percentage of sales. A landscaper remitting 5% of a $70,000 June and 5% of a $12,000 January pays $3,500 and $600 respectively. A fixed payment of $2,000 would be easy in June and painful in January.
What seasonal owners fund
- Pre-season equipment and vehicle repairs
- Spring hiring before the first invoices
- Inventory for a short selling window
- Snow or holiday equipment that converts the off-season into a second season
- Marketing timed to the start of demand
Showing seasonality to the lender
A one-sentence note ('revenue runs April through October') with the application helps a specialist read the statements correctly. If a prior year's statements show the same pattern, offer them.
Qualifying
Affirmative Funding requires $20,000 in average monthly revenue over the last three months and six months in business. A seasonal business that averages $35,000 a month in season and $8,000 off season qualifies when the recent three-month average clears $20,000.
Next step
See what your business qualifies for
Businesses with $20,000+ in monthly revenue and six months of history qualify. Three minutes, three bank statements, decision in minutes.