Why Alternative Lending Solutions are Better for Seasonal Businesses

*This post is from CMB partner Essex Lease. Visit them for flexible lending solutions.

Cash flow problems are a common stumbling block for seasonal businesses, so finding the right lending solutions is particularly important if your industry is seasonal in nature.

Cash flow will directly impact your business’s ability to pursue growth or manage the unexpected, and that can be especially challenging when it comes to operating a seasonal business.

With a partner that can provide expertise in alternative lending solutions, your seasonal business can pursue a range of options that meet your unique needs and circumstances.

Let’s take a look at some of the main ways a lending partner can be an ideal fit for a seasonal business.

1. Cash Flow is a Common Challenge for Seasonal Businesses

First of all, it’s important to know you aren’t alone; many industries see seasonal ebbs and flows in activity and production that make managing cash flow extremely challenging. A financing partner with access to alternative lending solutions can help ensure that your financing products are structured to take your seasonality into account

Cash flow solutions for seasonal businesses can look like:

• Asset-based lending, which allows for flexible repayment terms between high and low seasons that better match actual cash flow.
• An equipment financing agreement that is structured to match your monthly debt obligations to the seasonal nature of your industry.

A lending partner can ensure your financing products are personalized to meet your needs and set you up for success. That’s the kind of flexibility you won’t find with a traditional bank.

2. Even if Your Business is Seasonal, You Need Capital Year-Round to Invest in Growth

Every business owner knows that cash flow is directly related to business growth.

Even if your business shuts down operations for part of the year, you still need capital year-round for things like expanding to new markets, securing equipment, paying suppliers or training staff.

Flexibility is key to ensuring your business has the cash on hand you need to continue to grow, even when you aren’t generating revenues.

3. Having the Right Financing in Place Can Empower Your Business

Having the right financing products in place can be deeply empowering for your business. Flexibility is necessary to create custom solutions that work well for a seasonal business. For example, at Essex, we offer an Asset-Based Lending Line of Credit (ABLoC), allowing business owners to secure credit against free and clear assets.

This kind of flexibility can take a tremendous amount of stress off, giving you the freedom to stay focused on growth and be strategic about pursuing the right opportunities for your business, keeping you in the driver’s seat.

Regardless of your industry, if your business is seasonal in nature, it’s time to ask if your lending partner is truly working with you. If not, pursuing a relationship with a lending partner who can provide alternative solutions may be the right choice.

If your seasonal business is ready to take advantage of flexible lending solutions, it’s time to contact Essex today. 

For over 35 years, they’ve been building custom solutions for seasonal businesses across Canada. If you’re frustrated by big banks who don’t seem to understand the needs of your seasonal business, there is a better way!