As a seasonal business manager, you know the struggle of dealing with huge fluctuations in cash flow and business demand as the calendar changes.
Some businesses, like farms and agricultural enterprises, tend to quiet down in the winter and pick up in the summer. But others such as retail outlets and logistics services experience the opposite.
Managing your business throughout both low and peak periods can be a serious challenge, especially in terms of maintaining cash flow and meeting asset needs.
Asset finance is a popular solution for seasonal businesses, as it helps you smooth out cash flow fluctuations and acquire assets when you need them most.
The best part? You can do it all under one flexible, low-risk contract that’s tailored to your specific requirements.
How does asset finance support seasonal businesses?
All seasonal businesses have two main financial needs:
- To improve cash flow during off periods
- To ramp up operations to meet demand in peak periods
Asset finance allows you to do both.
Depending on the type of asset finance you choose, you can either release the capital of existing assets to fund operations or acquire essential assets without large upfront payments.
Whichever you need right now, asset finance is a safe and affordable option that helps seasonal businesses not just stay in business but grow consistently throughout the year.
What types of seasonal businesses could benefit from asset finance?
Businesses with changing consumer demand
All businesses experience peak periods. But for seasonal businesses, the calendar dictates whether you’re flooded with cash or running completely dry.
Either way, you still have payments to make.
Asset finance helps you maintain cash flow, cover expenses like payroll or rent, and even continue to grow during your off-season.
Businesses running commercial campaigns
If you’re not constantly in the public eye, advertising, promotional activities and marketing campaigns become incredibly important when your time of year rolls around.
With the support of asset finance, you can capture the attention of your target market with explosive campaigns that drive revenue, even after a prolonged dry spell.
Businesses that constantly adjust their resources
As a seasonal business, you need different levels of staff, stock and facilities throughout the year.
When it’s time for you to accelerate your business activities, asset finance funds the resources you need to operate at peak capacity during your busiest periods.
Examples of seasonal businesses that leverage asset finance
Seasonal businesses that benefit most from financing business assets include:
- Holiday retailers, such as those dedicated to Christmas or Halloween
- General retail businesses during peak periods
- E-commerce and delivery services
- Tourism and tour guides
- Farming and agricultural organisations
- Event management firms
- Ice cream vans and mobile caterers
- Holiday clubs for kids
- Gardeners and landscapers
Best types of asset finance for seasonal businesses
- Finance leasing: The lender buys the asset and leases it to you for monthly repayments that cover the initial cost and interest. They’re responsible for insuring and maintaining the asset, and at the end of your lease you can return it to free up cash flow
- Operating lease: You secure equipment for a limited amount of time. This is ideal for acquiring assets you don’t want to own outright. The lender maintains the asset during your contract period, so you don’t need to divert resources towards maintenance
- Contract hire: For leasing vehicles for commercial fleets. The lender sources and maintains the vehicles you lease from them while you make flexible, predictable payments that are easy to budget for
- Sale and leaseback: You sell an asset to a lender and lease it back from them. This lets you release the capital tied up in the asset when you need an extra cash flow injection. In addition, you can enjoy tax reductions that minimise your outgoings
- Asset refinancing: You put up existing assets as collateral to secure a loan, releasing their capital to cover regular expenses and fund day-to-day operations
How asset finance supports your seasonal business
Options for flexible seasonal repayments
Unlike many types of borrowing or finance, you can find asset finance agreements with flexible repayment plans that match your seasonal cash fluctuations.
When you apply for asset finance with Kane Financial Services, we help you find structured agreements with tailored repayment schedules that align with your cash flow cycles.
That means you make smaller repayments during quieter periods and pay more when you have more money coming in.
Continue growing during off-peak periods
Asset finance provides working capital that you can use to keep your business growing even outside of your busiest periods.
You can use these funds to enter new markets, pay suppliers or launch new business initiatives, all in time for your most profitable months.
Even out your cash flow fluctuations
Managing periods of high and low cash flow can be a financial nightmare for any seasonal business.
Using asset finance to inject cash when you need it lets you enter your peak period well-prepared to generate revenue.
It also makes your finances more predictable and easier to manage, reducing stress and freeing up your focus to optimise your business for maximum profitability.
Buy stock at the right time
When it comes to stock purchases, timing is everything.
Times, when stock prices drop, might not coincide with those in which you have spare cash to invest. But asset finance gives you a quick cash injection when you need it most.
That means you can seize opportunities when they arise and enjoy the best, most profitable deals.
Enjoy stable financial management all year round
Asset management improves your cash flow, letting you maintain consistent finances throughout the year.
Even when your pockets are empty, you can release capital tied up in your existing assets and meet your financial obligations with confidence.
Make your seasonal business a success with Kane Financial Services
As a leading independent asset finance broker, we’ve been supporting seasonal and full-time businesses throughout the UK and Northern Ireland for more than 35 years.
We can often match you with exclusive deals that aren’t available from high-street lenders. So you can fund your business at the best rates and terms possible.
Apply for asset finance online today to see if you’re eligible, or contact us to find out more.