Article Directory

How to navigate seasonal fluctuations with a business loan

Posted on June 24th, 2019

One well-known challenge that any entrepreneur might face is navigating seasonal fluctuations in the businesses or industry. The strategy to do this successfully involves developing skills and smart practices that will allow the company to remain profitable during off-seasons and periodic slowdowns. A seasonal fluctuation results from dips in customer demand or supply issues. No one can prepare for every possible contingency, but consider availing a business loan and avail business loans in India.

Short-term business loan

A short-term business loan could be your best bet if you need working capital for a short period. Like a term loan, this is what you likely think of when you hear “business loan”—it’s a lump sum you borrow from a lender, deposited into your business bank account. You’ll be able to use it as you need for the term of your loan. Short-term loans are usually less than a year to repayment, and some go to around 18 months. So, you theoretically could use the capital during your off-season and make the money back during your peak to repay your lender.

Inventory purchase financing

If the explicit reason you’re applying for a seasonal business loan is to refresh or replace the gear you use to make your business go, then you’ll want inventory purchase financing. With this type of business loan, you get a quote for the inventory you’d like to purchase, and, if you’re approved, your lender will approve you for the amount of money you need to make the purchase. This is an outstanding business loan for a few reasons. Number one, it’s what’s called a collateral-free loan, which means that the inventory itself serves as collateral, so you don’t need to put up anything extra. Lenders can also finance up to 100% of the purchase price of the inventory. And, sometimes, in a matter of days which makes it a great option for seasonal business owners who need to navigate seasonal fluctuations as fast and inexpensively as possible.

When to apply?

You have plenty of cash and zero time during your busiest time, so it makes sense to apply for your loan when things slow down, right? Wrong. In fact, don’t wait if you want that money. Although the idea of adding yet another task to your insane to-do list during your peak season might seem awful, that’s exactly when you need to apply for your seasonal business loan. And, it makes sense if you think about it: Lenders need to see the absolute strongest picture of your financials. Obviously, they know you’re a seasonal business. That said, if you can show them your strongest months, applying toward the end of your high season, your lender will be more inclined to give you the thumbs up. You’ll make a lender feel more confident that you can pay off your business loan, since you generate a lot of high-season revenue later, and have more in your bank account now.

The Bottom Line

It’s so simple that it almost seems silly to say, but it’s true: If you run out of money during your off-season, you won’t make it to your next peak season. You might not have considered taking on debt before, or might have decided it wasn’t the right option for you. Actually, business financing just might be the difference between whether or not you open up your doors the next time the seasons fluctuate.

Trending Articles

Most Popular Wireless Hacking Tools

Posted on December 12th, 2018Introduction of Wireless Hacking ToolsInternet is now the fundamental need of our daily life. With the increasing use of smartphones, most of the matters at the moment are on line.Every time we ought to do something, we just use our cellphone or computer. This is the cause wireless hotspots may be discovered anywhere.People also use WiFi of their home community to attach all gadgets. Every character can see the neighborhood WiFI Networks inside the machine, and they... Read More

The Coronavirus spreads across the United States, killing over 100

The Coronavirus is spreading rapidly in the United States, which has been engulfed by all states and the total number of cases has exceeded 6,000. The outbreak of the Coronavirus from China has engulfed 166 countries around the world, bringing the total number of victims to 98,543, out of which more than 82,000 have been cured and 7988 have been killed. According to US media, the Coronavirus has spread to all states and the number has risen to 6,515 after 104 new cases... Read More

What is Hantavirus Pulmonary Syndrome?

Hantavirus infection was noted in Japan in the mid-1970s when a series of patients with unknown fever occurred among rat handlers at medical animal experimental facilities in various locations, and the etiology was unknown at that time. (The outbreak continued until 1984, a total of 127 cases, one of which died). Earlier, in the 1960s, an unknown fever was reported in a poorly lived area in Umeda, Osaka (two of 119 cases died). Before the war, there was an epidemic in the Amur River... Read More

Great news for Mobile Customers

In this Emergency Solutions, the telecom companies operating in the country have taken various steps to ensure that the users of these services will not face any problem but can be facilitated. Learn about some of the services these companies are providing to mobile phone users during this difficult time. Telenor The company is providing a free WhatsApp facility for locals in the provinces to connect with their loved ones due to lockdown in the provinces. It... Read More


Far from the warm heat and glorious light of our sun, there is a dark and distant area inhabited by a frozen icy body well hidden from the curious observer’s pr cordy eyes. Indeed, astronomers have just begun exploring this strange area of ​​everlasting dusk, far away and not easily accessible to its many fascinating and bewitching secrets. This distant area at the outer limits of our solar system is called the Kuiper Belt, and the icy dwarf planet Pl and its... Read More