A seasonal business: how is your file read?
A seasonal business’s file is presented with its strong months and its weak months, as the statements show them. The lender reads the whole period and decides.
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- Can a seasonal business present a file?
- Yes, the file can be presented, from the deposits in the business account. The lender reads the peaks and the dips in your statements; it is the whole period that counts.
- Do my slow months hurt the file?
- Not by themselves: a passing dip is read differently from a decline that lasts. The file is presented with the strong months and the weak ones.
- Which statements should I send when revenue varies?
- The statements for the last three to six months, as your institution issues them. If that period falls in the slow season, you can say so in your application.
- The need comes back every year: which product?
- A line of credit answers a need that comes back, if the file supports it. Otherwise, revenue-based financing can be presented too; the lender decides.
- Does the repayment follow the season?
- The repayment schedule is set by the lender, in its written offer. Read it with your weak months in mind before deciding; you are free to decline.
What the lender looks at
- Actual deposits, month by month
- The strong months and the weak months, as they reach the account.
- Trend over the period
- A slow season is read differently from a decline that lasts.
- Days in overdraft
- An overdraft during the slow season shows in the account.
- How long the business has been operating
- A longer history gives the lender more seasons to read.
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An intermediary, not a lender.
The lender sets the final amount and its cost in its written offer.
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