I run a summer-only business and need to keep

4 min read

Real situationThe situation: a business built for half

OptionsPractical routes covered

Next stepWhat to check before acting

The situation: a business built for half the year

Some limited companies are built around a season — holiday parks, outdoor hospitality, festival supply, tourism, certain construction and agricultural trades. Revenue is strong for part of the year and drops to almost nothing for the rest. That is not a failing business; it is the shape of the model. The problem is that costs do not go seasonal in the same way. Rent, insurance, loan repayments, core staff, software subscriptions and director's own drawings tend to carry on regardless of what month it is.

The bite comes from timing, not viability. A director can have a genuinely profitable year on paper and still face a period where the bank balance is falling every week with no trading income to offset it. Left unmanaged, that mismatch forces reactive decisions in the quiet months — laying off staff who won't be there to rehire in spring, missing a supplier payment that damages a relationship built up over years, or drawing down personal funds to keep the company going. None of those fix the underlying pattern; they just get through this winter.

The options for bridging the gap

Several routes exist, and the right one usually combines more than one. On the operational side: build a season-shaped budget rather than a monthly-average one, so the plan matches reality instead of fighting it; agree seasonal payment terms with landlords, insurers and key suppliers where the relationship allows it; and look at whether any fixed costs can be made variable — moving from annual to usage-based contracts, or renegotiating a lease around trading months.

On the workforce side, some directors move core staff to reduced hours or a different role over winter rather than losing them entirely, retaining the skills and relationships that make next season work. On the income side, some seasonal businesses develop a secondary off-season activity — storage, events, maintenance work, wholesale — that doesn't replace the core trade but softens the trough.

Where the gap still can't be closed by planning and negotiation alone, external finance is one option among these, not a replacement for them. A facility sized and timed to the trading pattern can carry the company through the quiet months and be repaid as the season builds back up — used to protect the business, not to paper over a model that isn't working.

Matching finance to the seasonal shape, if you use it

The detail that matters for a seasonal business is structure, not just access. A facility that expects level monthly repayments all year fights the same battle as fixed costs do — it demands money in the months there isn't any. What tends to work better is a facility structured around the trading cycle: drawn down as the off-season starts, with repayment weighted toward the months when revenue actually returns.

This is also where a director needs to be honest about repeat use. A facility that bridges one winter and clears when trading resumes is a tool. A facility that never quite clears before the next off-season begins is a sign the business is carrying more fixed cost than its trading pattern supports, and that's worth addressing directly rather than refinancing around indefinitely.

What it means for you

If your company's income genuinely halts for part of the year, plan for that pattern deliberately rather than treating each winter as a crisis to survive. Build the budget around the season you actually have, negotiate what can flex, and keep core relationships — staff and suppliers — intact where you can.

If, after that planning, there's still a real gap between committed costs and off-season income, a facility structured to your trading cycle can bridge it. As an exempt business lender, Credicorp can talk through options with a limited company or LLP in this position — this is general information, not financial advice, and any facility is assessed on the business's own circumstances.

Frequently asked questions

Is it normal for a seasonal business to look like it's struggling in winter?

It's common for seasonal companies to show a cash trough that looks alarming in isolation but is a normal feature of the trading pattern rather than a sign of failure. The useful test is whether the whole-year picture is sound and whether the off-season gap is planned for, not whether the bank balance looks healthy in any single month.

Should I lay off staff every off-season to cut costs?

It depends on the role. Losing core staff who are hard to replace can cost more in retraining and lost continuity than it saves, so some directors move key people to reduced hours or different duties instead. Roles that are genuinely seasonal and easy to rehire are a different case, and cutting those is often the more sensible option.

How do I avoid needing a bridge every single winter?

Look at whether fixed costs are sized for a full year of trading when income only supports part of one — that mismatch is usually the root cause. Renegotiating contracts onto seasonal terms, building a cash reserve during the peak, or adding an off-season income stream tend to reduce reliance on external finance over time, rather than needing a facility every year to cover the same gap.