How to Combat Small Business Seasonality
Most small business owners start out down a similar path: they gain experience in their chosen field, develop their own expertise, formulate a plan for how to improve things, and finally branch off to start their own company. While some are fortunate enough to hit the ground running, with pre-existing clients in tow, many are focused on drumming up new business for the first months – or even years – of their new ventures. This often requires copious amounts of spending on startup costs, marketing and staffing, to name a few. Once a merchant overcomes these large initial challenges, the next one can rear its ugly head… seasonality.
Seasonality describes the increase and/or decline in demand for a product or service, based on the time of year. Several key factors can contribute to seasonality, including weather, consumer behavior patterns, travel, and more. Some examples of seasonal businesses include vacation and travel entities, lawn care, retail (especially those with a sports and recreation focus), tax services and education services, among many others. These seasonal companies experience fluctuations in resources that are two-fold: they often require available capital to keep up with the surge in demand during the busy seasons, and funds to cover operational costs during the slow times. A lack of funding during the former can lead to missed opportunities while lacking resources during the latter can have more dire consequences. Either way, it can be extremely beneficial for small business owners to know what options are available to them if a need for quick funding arises.
Small Business Loans for Seasonal Companies
Many seasonal businesses are not candidates for traditional bank financing if they are light on assets, have low or insufficient credit or simply can’t wait weeks or months to receive the funds they need to take advantage of their opportunities. MobyCap is considered the premier specialty finance option for small business owners seeking funding to make the most of seasonality. We’ve successfully deployed over $1 billion and counting to merchants in similar situations over the last decade and continue to refine our offerings while streamlining our approach to make it easier than ever for small business owners to acquire funding tailored to their exact needs. Unlike other private lenders, we offer a full suite of options including term loans, revenue advances and lines of credit. We typically underwrite for all possible options before presenting the best approvals and moving quickly through the closing process.
This streamlined approach requires minimal documentation to start underwriting and can yield approvals within hours of receiving the items we need to start. Moreover, we assign a team of specialists to every deal in order to gain a deeper understanding of our clients’ current needs and future aspirations, which allows us to truly customize offers suited to their exact needs. This also inspires us to focus on speed and ease, as we know business owners would rather focus on running their operations, rather than tracking down the resources needed to do so.
There is no hard credit pull or personal guarantee necessary to underwrite, so you have nothing to lose and much to gain by calling in to discuss your options with our funding experts. Don’t hesitate to submit your information through our Contact Us page, or call (737) 577-1180 to get started. Thank you, we look forward to working with you and are confident we can be a valuable asset to your business.