April 08, 2021
Seasonal Business Loans: How to Select the Best Option
By pursuing a business loan for your seasonal business, you’ll find it easier to meet your business expenses during down times. Since there are a variety of seasonal business financing options out there, it’s important to explore all of the loans at your disposal.
In this post, we'll explain how small business owners can select a loan product that fits their seasonal operation's needs. We'll also detail popular loan options, and what is typically required on seasonal financing loan applications.
Why Small Business Loans Benefit Seasonal Businesses:
A seasonal business loan or other type of financing can be useful if your business experiences cash flow shortages during certain seasons. Often, seasonal business owners use financing for the following expenses:- Purchasing inventory: With a business loan, you can fulfill current inventory orders or stock up for your busy season.
- Investing in equipment: Having access to seasonal business financing can allow you to fix, upgrade, or purchase equipment, which is often a costly expense.
- Meeting payroll or hiring new employees: If you're struggling to meet payroll or want to hire more employees prior to your busy season, consider using your loan for these staffing needs.
- Marketing costs: With a loan you can invest in marketing costs to generate additional sales during your off season. It can help you cover the cost of traditional and digital marketing initiatives like paid search, search engine optimization, direct mail, and billboards.
- Emergency Funds: A seasonal business loan can provide you with the emergency funds you need to pay for unexpected expenses. These expenses may pop up as a result of equipment failures, building damages from bad weather conditions, and other similar circumstances. Most notably, many business owners have required emergency funding since the start of the COVID-19 pandemic.