Equipment Lending
Equipment Financing for Seasonal Businesses
The iron is the application. This guide covers how that works for one corner of equipment finance.
Equipment Lending
The short version, then the substance.
Key Takeaways
- The seasonal squeeze
- Buying in the off-season
- Structuring around the season
The seasonal squeeze. Landscapers, coastal operators, and ag businesses earn in waves but pay for equipment year-round. The mismatch between revenue season and expense calendar is a financing problem, not a business problem.
Buying in the off-season. The best equipment prices show up when other seasonal operators are selling and nobody is buying. Asset-based capital lets you buy capacity in the trough and have it ready for the peak, which is how the strong operators got strong.
Structuring around the season. Interest-only carry through the slow months with the note retired out of peak revenue fits the rhythm. Tell us the season and we structure to it, because a payment schedule that fights your cash flow helps nobody.
The South Texas angle. Averlend underwrites this every week in Corpus Christi and across Nueces County. If you are working a deal in downtown or anywhere else in the metro, the theory above comes with a local desk attached: see our Corpus Christi lending page or send the deal directly.
Questions
Quick answers from the Averlend desk.
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