Seasonality is normal for many SMEs. The problem is unplanned seasonality—funding peaks late, when options are limited and decisions are rushed. A calm plan helps you fund inventory, staffing, and marketing without over-borrowing.
Step 1: Map your peak cycle in cash terms
Seasonality is not just “busy months.” It is:
- When you spend cash (inventory, staffing, marketing)
- When you earn revenue
- When you actually collect cash
Your financing should cover the timing gap between spend and collection.
Step 2: Decide what you are funding
Seasonal funding typically covers:
- Inventory buys ahead of demand
- Temporary staffing to handle volume
- Marketing spend to capture the peak
- Supplier deposits to secure capacity
Each has different payback timing. Match the facility to the timeline.
Step 3: Avoid common seasonal traps
- Ordering inventory without a sell-through plan
- Hiring too early and burning cash on payroll
- Borrowing “just in case” without usage discipline
- Forgetting post-peak needs (returns, slower collections, restocking)
Step 4: Plan repayments for off-peak months too
A facility should not only be repayable in peak months. Set repayments that work in your off-peak baseline month, then use peak months to build buffer.
Key takeaway
Seasonal financing works best when it is planned early and sized for off-peak sustainability, not peak optimism.
If you are planning for a peak period and want financing that matches your cycle, apply for financing and we will help structure funding around real demand and repayment timing.