Expert Financing Tips for Seasonal Business

Are you operating a seasonal business? 

Seasonal business models are unique, which means seasonal business owners must take a strategic approach to their financing needs. 

When you're operating a seasonal business, it's essential to understand your sales cycle inside and out. From identifying trends, understanding the cyclical highs and lows and anticipating the unexpected, seasonal businesses should be asking themselves some essential questions, such as;

• Are your sales cycles the same year over year?

• Do your financing terms match your cash flow?

• How are you planning for the working capital you need to grow your business?

At Essex Lease Financial, we have helped many seasonal businesses succeed, so we understand how complex operating these kinds of businesses can be. 

Here is our expert advice on how seasonal business owners can leverage their lending and financing relationships to thrive.

Budget to Reinvest

Managing cash flow is essential regardless of your business, but cash flow can quickly become complicated for seasonal business owners. When most of your revenues are generated in a short window, how do you ensure you have the cash to manage expenses throughout the year and invest for growth?

Seasonal businesses will be best served by working with a financing partner that can help them match their debt obligations to their cash flow. With the right financing terms, business owners have more control to budget for the cash on hand they need to respond to growth opportunities.

Leverage Your Assets & Control Debt

Given seasonal businesses' limited window for generating revenues, effective debt management is essential. Flexible solutions like asset-based lending allow businesses to leverage the value of free and clear assets for debt consolidation, debt restructuring and raising working capital.  

Seasonal business owners will need to think "outside the box" and utilize versatile financing tools to ensure they can manage debt without choking off the capital they need for growth.

Negotiate Better Financing Terms

When it comes to seasonal business, having a personal relationship with your lender is crucial. And when your lending partner takes the time to understand your business personally, your character and integrity become part of your business's value proposition, which means better lending terms and more flexibility. 

Remember that financing is a negotiation. If your lending partner isn't responsive to your unique needs as a seasonal business, it may be time to look for a lender who understands your challenges and is genuinely committed to helping you succeed.

For more than 35 years, Essex Lease Financial has been building custom solutions for seasonal businesses across Canada. Our personalized, flexible approach to lending and financing makes managing the ups and downs of seasonal business cycles simple and effective.

If your seasonal business is ready to take advantage of custom financing, reach out to us today to learn more or get started.