There is no perfect season or company, and there certainly are no perfect CEOs. Now that we have that out of the way, let’s discuss the reality of seasonal cash flow and businesses that have historically gotten very good at making lots of money while their proverbial “sun is shining” but then learning to save, cut back, and scrimp to save that money to cover debt while their cash registers are not ringing. By definition, a “seasonal” business relies in some fashion on changing the seasons from one to another. Seasonal in this context could also relate to a company focused on specific events like holidays, sporting events, local celebrations in a specific community, or even the beginning or end of the school season.

The image shows a businessman with a flexible body bending backward while using a laptop.

More businesses fit into this category than you might realize, including:

  • Ski Resorts that only have a 3-4 month window of opportunity if the weather cooperates
  • Landscaping businesses, whether commercial or residential, have to wait for the thaw and then lawns to dry out and operate only until it gets cold. However, some do not have to wait to clean the snow off the teak table or shovel the driveway, as they can start doing that at the end of the blizzard.
  • Retail operations that make 90% of their profit during the Christmas season and then hunker in for the next ten months
  • Commercial photographers who make their living taking yearbook and graduation pictures for sale
  • Bed and Breakfast inns or lodges in a resort town could be a winter opportunity or summer-only
  • Service businesses like lawn fertilization, roofing, landscaping, and many more

Let’s face it: Many thriving businesses have had to learn to manage cash flow as a way of life.

So what happens when the cats grooming the slopes at the ski resort need to be upgraded or replaced? How about the mowing equipment and trenchers that need to be replaced and then idled for six months or more of the year for a landscaping operation? How about the destination lodge that desperately needs to upgrade its kitchen or heating and cooling systems before the next season hits? There are hundreds of stories from real business owners struggling with operational realities that most “non-seasonal” companies that enjoy a steady cash flow year-round with an occasional great month don’t understand.

If you own or operate any of the above businesses, you should explore “flexible terms” in your equipment leasing agreements. Most leasing companies using their own capital to finance their client projects understand that being flexible in loan repayments to match the business’s cash flow is critical in creating a long-term relationship beneficial to all. If your equipment leasing company refuses to discuss this reality with you, then perhaps you are sitting at the wrong table!

In a world dominated by electronic communication, 140-character Twitter (Now known as X) feeds, and 30-second videos, it’s nice to know there are financial service providers in the market that care about the businesses they serve and do all they possibly can to make the first transaction the stepping stone to the 20th. That only comes through people taking care of people in the way that we all hope for but rarely experience.

Picture of Steve Hansen
Steve Hansen
Mr. Hansen is the CEO of Equipment Leases and manages all of the day to day operations. He has an extensive network of lenders that are invaluable partners in providing capital to the SMB market. He also has owned a web development agency for more than 30-years. In his career he has built more than 10,000 websites and sold many of his high trafficked sites to other larger agencies.