Seasonal borrowing: funding the gap between peaks

The seasonal cash gap

Retailers stocking up before Christmas, tourism firms fitting out before summer, farmers buying inputs before harvest — all spend heavily before the season that repays them. Seasonal borrowing funds that run-up so the business is ready, then clears from the takings when they arrive.

Facilities that fit

A short-term working-capital loan timed to the season, a flexible facility, or a seasonal buffer all suit. The key is matching the repayment to when the cash comes in, not to an arbitrary level schedule that ignores the calendar.

Sizing the borrowing

Borrow to cover the gap, not the whole season. Add up the costs you must meet before revenue lands, add a modest buffer, and stop there. Over-borrowing means paying interest on money that sits idle. See affordability when seasonal.

Timing it right

Arrange the facility while your last peak is fresh in the accounts, so affordability is easy to show, and draw it just as the run-up begins. Repay as the season pays out, ideally clearing before the next lean stretch. Read planning for seasonal cash flow.

Plan the season

Use the calculator to size the buffer your season needs.

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