How do I calculate a seasonal reserve?

Multiply fixed monthly costs by the number of slow months, then subtract the surplus you can set aside in peak months.

Will my slow season make an application harder?

Seasonality is normal. We read about three months of business bank statements, so explain a seasonal trough if it shows.

When is the best time to arrange a bridge?

Before the trough, while your statements still show strong deposits.

Is the calendar the same for every business?

No. It is a general framework. Your own revenue pattern should drive the plan.

Can a sole proprietor apply?

Yes. Sole proprietors can apply.

Seasonal Cash-Flow Calendar for New York Businesses

Three seasonal patterns

New York's seasons shape cash flow in different ways depending on where and what you sell. Three patterns show up most often.

Winter-driven upstate. Snow removal, heating-related trades, ski-area and cold-weather businesses earn when the weather is harsh and slow down when it eases.
Summer-driven shore and resort areas. Restaurants, rentals, marinas and seasonal shops earn heavily in warm months and run thin for the rest.
Holiday-driven retail. Shops and gift businesses earn disproportionately in the last weeks of the year.

Each has a peak that carries the year and a trough that threatens it.

The calendar

Season	Winter upstate	Summer shore	Holiday retail
Winter	Peak revenue, high equipment strain	Slowest months, fixed costs continue	Post-holiday lull, returns and clearance
Spring	Revenue falls, repairs and replacement	Hiring, repairs and stocking up	Rebuilding cash, reordering carefully
Summer	Quiet, lowest-demand period	Peak revenue, labor-heavy	Planning the fall, supplier talks
Fall	Preparation and equipment prep	Wind-down, staff reductions	Heavy stock purchases, cash lowest

Illustration: the reserve method

Suppose a seasonal business has $20,000 in fixed monthly costs, and its slow period lasts five months. It needs about $100,000 of cushion to get through without borrowing, either saved from the peak or covered by funding. If the peak produces only $70,000 of surplus, the business is $30,000 short by the end of the trough. The numbers are invented to show the method and are not our terms.

The formula is simple: fixed monthly costs times the number of slow months, minus the surplus you can reasonably set aside.

Habits that smooth a seasonal year

Set aside a percentage every peak month

Move money into a separate account right away, before it can be spent.

Do maintenance in the trough

Repairs done before the peak prevent a breakdown in the middle of it.

Negotiate seasonal terms

Some landlords and suppliers will flex payments to match your calendar if you ask before you fall behind.

Plan the bridge in advance

Know what you would use if the reserve runs out, and what documents it requires, while you are still comfortable.

Funding a seasonal business

We fund $25,000 to $5,000,000, in as little as 24 hours. A seasonal pattern is visible in about three months of business bank statements, so tell the funder if your statements show a trough rather than a decline. We consider FICO 500 and above, require no tax returns, use a soft credit pull and take about five minutes to apply. Sole proprietors can apply.

A seasonal cash-flow calendar for New York businesses