Seasonal repayments – could this be the right option for your business?

At Close Brothers Asset Finance and Leasing, this is an option we’ve been offering for many years, and has benefited countless customers, including those who operate in the print and packaging sector.

Seasonal payments can manifest in various forms, depending on the nature of the business or individual expenses. For businesses, examples may include holiday bonuses, increased staffing costs during peak seasons, or higher procurement expenses due to changes in supply and demand.

Firms can face financial challenges when managing seasonal payments, including the influx of expenses during peak seasons which can strain cash flow, making it difficult to meet financial obligations. Moreover, relying on seasonal revenues can create uncertainty, leaving businesses vulnerable during slower periods.

The easiest way to demonstrate how seasonal payments work is through an example deal. When buying an asset to enter or expand into new markets, there can often be a period of time before the new asset begins paying for itself.

Seasonal repayments – low start payments example

Low start payments can help to alleviate this challenge, without the need to raise additional working capital.

A typical low start period would be 3 – 12 months. Within this period, the repayments can be arranged in a way that they gradually increase (see illustration* iii)

*Illustrations are for example purposes only

Seasonal repayments – seasonal low repayments

Seasonal trading fluctuations affect many firms in the Print and Packaging sector, typically in the months of December, January & February.

A seasonal repayment plan is a way of reducing the effect of annual trading lows, without the need for further borrowing.

Products and services are subject to eligibility, status, terms and conditions and availability. All lending is subject to status and our lending criteria. The right to decline any application is reserved.