How do I manage cash flow in a seasonal business?

2 min read

Whole-year viewForecast peaks & dips

Save in peakFund the trough

Draw & repayBridge the gap

The approach

Map income and costs across all twelve months so the troughs are visible before they arrive — the seasonal cash-buffer calculator does the arithmetic. In the peak, set aside a reserve rather than treating a good month as permanent. In the trough, cover fixed costs from the reserve first, then a facility for the remaining gap.

Where finance fits

A revolving facility suits seasonality perfectly: draw to cover the quiet months, repay as the busy season's cash lands, and pay interest only on what you use. That is far cheaper than a large fixed loan sitting idle for half the year. Credicorp Flex is built for this draw-and-repay pattern. Sector-specific guidance is on https://sectors.credicorp.co.uk/ for trades with strong seasonality.

What it means for you

Credicorp lends to your company, not to you personally, and takes no personal guarantee. See business loans or apply online.

Frequently asked questions

Should a seasonal business take a fixed loan or a facility?

Usually a facility. A fixed loan charges interest on the full amount all year, even in the busy months when you don't need it. A facility lets you draw only in the lean season and repay in the peak.

How do I stop a good season masking a cash problem?

Forecast the full year and ring-fence a reserve during the peak. Treating peak cash as everyday income is how seasonal businesses get caught out when the quiet months arrive.