Guide

Seasonal cash flow planning for Canadian businesses a practical guide.

Canada's climate makes many businesses seasonal. Planning the gap in advance is cheaper than reacting to it.

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Overview

Canada's climate makes many businesses seasonal. Planning the gap in advance is cheaper than reacting to it.

Map your year

List twelve months with deposits and major costs. Mark the months you run behind. You will usually see two or three weeks to two months where costs run ahead of revenue.

That gap, not a general sense of being busy, is what you plan funding around.

Time the money to the first cost

The cash you need is not when the season peaks. It is when payroll, stock and equipment start before the first sale. Funding too early means paying for idle money; too late means missing the window.

A request equal to the gap, plus a modest buffer, is easier to approve and cheaper to repay.

Choose a structure that eases in the quiet months

A fixed daily payment continues in the slow season. A share-of-revenue structure eases off. If your off-season deposits fall by more than a third, the second is worth asking about.

Plan the exit

Repay out of peak-season deposits and note the date the facility should be fully repaid. If you will need money again next year, plan for it, because a recurring gap is a reason to build a standing facility instead of repeated advances.

Typical starting points

Monthly revenueTypically from around $20,000 a month in deposits for Canadian files. The exact line varies by funder and by file.

Time in businessTypically about 12 months. Newer businesses can be reviewed, but the options narrow.

Account healthLimited low-balance or negative days. Funders read the last few months of bank statements for this.

CreditScores from 500 are considered. A score of 600 or higher opens more options and better offers.

DocumentsA signed application and recent business bank statements, typically the last four months.

Existing advancesFiles with an existing advance can be reviewed, including second position.

Takeaways

Map twelve months, mark the gap, size to the gap
Fund the first cost, not the first sale
Prefer structures that ease in the quiet months

Common questions

When should I arrange funding?

A few weeks before the first major cost, so timing is not rushed. Too early costs money; too late costs the window.

Can I use the same plan every year?

Yes. A repeatable calendar is the strongest evidence a funder can see of control.

What if the season underperforms?

Plan against a 30% weaker peak. If the payment still fits, the plan is safe.

Keep reading

GuidesPractical guides for Canadian owners GlossaryPlain-language definitions Funding requirementsTypical starting points for Canadian files Documents you needWhat to have ready before you apply Funding use casesPayroll, inventory, expansion and more

Educational information only. It is not legal, tax or accounting advice.

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