Canadian Seasonal Business Financing

 

What is a Seasonal Business?

 

Canada’s climate, geography and the nature of many of our businesses leads to a high percentage of seasonal businesses. Cyclical businesses often result in the total shut-down or significant differences in sales between 2 periods i.e. ski hills, outdoor activities, food manufacturing, and fishing.

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Problems Faced by Seasonal Businesses

Obtaining financing can be challenging for seasonal businesses for two reasons

  1. Traditional financial institutions, banks and factoring companies consider these businesses to be high risk.

  2. Repayment of business financing during the seasonal businesses’ down time.

Traditional financial institutions, banks and factoring companies consider seasonal businesses to be high risk as annual projections are generally based on data that is a year old. What if the weather changes, what if there was a one time event last year? So, in addition to the regular inherent financing decisions with respect to risk, there is also a larger “what-if” factor of external circumstances.
Another major challenge for seasonal businesses is not only the difficulty of obtaining the business funding but the difficulty of the repayment of this financing. During the down season, a business will most likely not have the cash flow needed to make the payments on their business loans. It causes strain on the business, which hinders the business’ growth rather than benefit it.
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The Solution

With AdvanceIt's Merchant Cash Advance program, Canadian seasonal businesses can finally obtain financing to use towards any of their business needs without affecting their cash flow. Our Merchant Cash Advance program is tailored to the specific needs of cyclical businesses providing you with the flexibility to have your payments based on your debit and credit card sales. Ensuring that if your sales are low so are your payments!
AdvanceIt approves businesses in industries that banks often reject and makes the process of obtaining working capital easier and more accessible than through traditional loans. That’s why our program is tailored to help seasonal businesses achieve growth and increased profitability without having to deal with the red-tape encountered when dealing with financial institutions. Business owners do not have to put up outside collateral to qualify or go through the loan-qualification process.