2 min read
The seasonal problem in plain terms
A holiday park, campsite or seasonal attraction takes the bulk of its money between spring and early autumn, then faces a long winter of outgoings with little income. On top of that, the busiest spending often comes just before the season opens — refurbishing pitches, servicing facilities, restocking — precisely when the previous year's cash is at its thinnest.
Why a revolving facility fits better than a term loan
A revolving credit facility lets a seasonal business draw down through the lean months and repay through the peak, so it only pays interest on what it uses when it uses it. A fixed term loan, by contrast, demands the same repayment every month regardless of season — a poor match for income that arrives in a rush and then stops.
Funding pre-season preparation
Where the need is a defined pre-season project — new lodges, a facilities upgrade — a short-term business loan sized to be repaid over the coming season can make sense. The key is matching the repayment profile to when the money actually comes in. See how tourism and leisure firms in serviced accommodation and hotels approach the same challenge.
Model the season before you commit
Use our seasonal cash-flow planner and seasonal cash buffer calculator to map peak and trough, then size the facility to the real gap. The seasonal cash flow guide on Learn covers the discipline of provisioning from peak income. General information, not an offer of finance.
Frequently asked questions
Do lenders understand highly seasonal businesses?
Yes — seasonality is common across tourism, agriculture and retail, and commercial lenders assess it as a normal feature of the trade. What matters is that the annual figures show the business generates enough across the year to service the facility, and that the repayment profile is matched to the peak.
Should a seasonal business use a loan or a revolving facility?
A revolving facility usually fits recurring seasonal gaps better because you draw and repay in line with income. A term loan suits a defined pre-season project with a clear repayment plan. Many seasonal operators use one of each.
How much off-season funding does a holiday park need?
It depends on fixed winter costs and the length of the trough. Mapping monthly cash in and out with a seasonal planner gives a precise figure; sizing a facility to the deepest month of the trough is the usual approach.
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