Summertime ushers in hotter weather, a break from school, planned vacations, and a boom in business for some industries. Understanding that your business's peak season is during the summer is quintessential to your business’s success.
Due to the warm weather and summer vacation, there is a boost in summer industries like ice cream parlors, beach and pool accessories, outdoor recreation, event planning, and hospitality. With each of these unique small businesses comes an exceptional need for funding to match their business needs. In a world with unlimited funding program options, some are ideal for seasonal businesses.
Merchant Cash Advances
Merchant Cash Advances offers small businesses a one-time lump sum to the merchant in exchange for a percentage of future credit card sales. Repayment is made through a percentage of daily credit card transactions. This is a great option for small businesses in the hospitality industry, beach and pool accessories.
Small Business Administration Loans
An SBA loan is a small business loan that is partially guaranteed by the Small Business Administration, which helps eliminate some of the risk for the financial institution issuing the loan. SBA loans typically have favorable terms and lower interest rates compared to traditional bank loans. This is a great option for small businesses in event planning and outdoor recreation.
Equipment Financing
Equipment financing is a financial solution that allows small businesses to purchase essential new or used equipment without the burden of the upfront cost. This helps usher in the ability of a small business to update its technology or enhance the operational capacity of the business. This is an ideal financing solution for small businesses like ice cream parlors.
Revolving Line of Credit
A revolving Line of Credit is a flexible financing option that allows small businesses or individuals to borrow money up to a certain limit, pay it back, and borrow it again as needed. It’s similar to a credit card but generally offers a higher credit limit and lower interest rates. This is a great option for many small businesses.
Conclusion
Ultimately every small business is different and has unique needs that have to be taken into consideration when looking into funding that may help alleviate the stress of peak business season. Understanding how each of these financing options can benefit your small business and which of the terms are ideal for your business gives you the best chance of picking the best financing option. Connect with a summertime business advisor today to discuss what funding option is best for your business!
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