Fund Your Business Through Seasonal Fluctuations
Seasonal businesses face unique challenges due to the natural ebbs and flows of their business operations.
Funding with altLINE can help seasonal business owners better manage cash flow and feel more confident, even in the off season.
Seasonality management
Stress Less During Seasonal Fluctuations
Whether your seasonal business fluctuations are caused by weather conditions, seasonal demand, the nature of your industry, or annual holidays, you’ve likely experienced the difficulty of properly managing your working capital throughout the year.
Financing through altLINE can help you better manage your cash flow during off seasons and grow during peak seasons.
Optimize Cash Flow Year-Round
Better Manage Cash Flow During On and Off Seasons
It’s no secret that cash flow can shift quite a bit in a seasonal business, but how you manage your cash flow can help you thrive in peak seasons and be more confident in off seasons.
Working with a factoring company like altLINE can help you scale operations and ensure you have enough working capital available during slower periods.
- Scale During Peak Season
- Access Financing on Your Schedule
- No More Waiting on Customer Payments
Stay Flexible & Prepared
Be Prepared for the Unexpected
Running a seasonal business comes with ups and downs, so it’s important to plan for the unexpected. altLINE’s seasonal business funding gives you the flexibility to adapt to changes in performance.
How altLINE Helps You Stay Prepared:
-
Adapt to Market Shifts
Secure funding to handle sudden demand spikes or slow periods. -
Hire Seasonal Workers
Easily bring on temporary staff during peak times. -
Scale Financing Up or Down
Adjust funding levels based on business performance. -
Reduce Financial Stress
Gain confidence knowing you have a flexible funding plan.
Why Work with altLINE?
Discover What Makes altLINE Unique
FDIC-Regulated
Lender
NO HIDDEN RATES OR FEES
altLINE is a branch of The Southern Bank Company, giving you direct access to secured funds and allowing us to offer competitive rates without hidden fees.
DEDICATED ACCOUNT MANAGERS
You will work with one of our dedicated account managers who will help you manage your back-office tasks, including collecting invoice payments.
Smooth Customer
Onboarding
Complimentary
Customer Vetting
Same Day Funding
Available
Client Success Story
See How altLINE Helped a Client Grow 1000%
Frequently Asked
Seasonal Business Funding FAQs
What is seasonal business funding?
Seasonal business funding is a type of business financing designed for companies that deal with seasonal fluctuations in cash flow and working capital. Seasonal businesses typically have peak seasons and off seasons, creating constantly changing working capital needs. Because of the ever-shifting working capital cycle, these companies need flexible, customizable funding solutions that allow them to easily adapt to shifts in seasonal demand.
Seasonal business funding includes of a variety of financing products, including invoice factoring, seasonal business loans, and business lines of credit. The product that is best for your business depends on your particular needs. For example, if you need a lump sum of cash to get you through the off season, a business loan may be the best option. However, if you need to be able to easily increase payroll as you hire new workers for the peak season, invoice factoring may be a better option as its flexibility allows you to scale your financing up and down, as needed.
What types of financing options are there for businesses that experience seasonal fluctuations?
There are many types of financing options available for seasonal businesses. We’ve overviewed some of the most common types below for you to consider:
- Invoice factoring – Invoice factoring allows you to sell your unpaid invoices in exchange for a cash advance, and it is an excellent seasonal funding option for businesses that deal with customers who pay slowly or for businesses that need to easily hire more employees during peak seasons. This financing option is scalable and easier to be approved for than traditional types of financing, but it can have slightly higher fees than these traditional borrowing options.
- Business loans – Seasonal business loans provide you with a lump sum that you can use for a variety of expenses throughout the year. Business loans are a good option for those that need to make several larger purchases, but they can be more difficult to qualify for than other seasonal lending options.
- Business line of credit – A line of credit allows you to borrow money on a continuous basis, as long as you pay down your balance. Lines of credit tend to be flexible borrowing options, making them great for seasonal businesses, but like business loans, they can be more difficult to qualify for, especially if you are a new business or have poor credit history.
- Merchant cash advance – Merchant cash advances are short-term lending options that are used by businesses that process many credit and debit card sales. While they can be very easy to qualify for and can supplement short-term cash flow needs, they come with hefty interest rates. Additionally, merchant cash advances are typically repaid on a daily or weekly basis, as the lender deducts a percentage of your credit/debit card sales until the loan is repaid.
- ACH loans – An automated clearing house (ACH) loan is very similar to a merchant cash advance; however, instead of paying back the loan based on a percentage of your credit/debit card sales, ACH loans are repaid by automatic ACH withdrawals from your checking account. Similar to merchant cash advances, ACH loans provide short-term financing that can be helpful when working capital is low, but they come with hefty fees and rigid repayment structures.
Why is invoice factoring a popular choice for seasonal businesses?
Invoice factoring provides seasonal businesses with a scalable funding solution as many factoring companies allow businesses to alter how much of their ledger they’ll be factoring on a monthly basis. Seasonal businesses often have shifting working capital needs throughout the year, so the ability to routinely adjust how much of their ledger is factored is considered a huge benefit. For instance, a business may need to factor their entire sales ledger to keep up with their working capital needs during a busy period, but during off season months, they can scale back and factor only a portion of their ledger.
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Mastering Working Capital for Financial Stability
When it comes to your company’s finances, few practices are more important than working capital management. By understanding the definition of working capital management and effective working capital solutions, you can improve the financial stability of your business.
