Merchant cash advances for seasonal businesses

• Cash flow challenge: Seasonal businesses often experiencing uneven cash flow, with quieter trading periods making fixed loan repayments difficult to manage.

   

• Perfect for: Seasonal businesses with card-based sales, such as hospitality, retail, tourism, events, and leisure firms with predictable peak and off-peak trading cycles.

Novuna helps seasonal businesses access flexible funding through merchant cash advances, either through our award-winning in-house service or by comparing trusted providers to find the right fit for your trading cycle.

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How merchant cash advances work for seasonal businesses

A merchant cash advance (MCA) provides upfront funding that’s repaid as a percentage of your daily card sales rather than fixed monthly instalments.

Here’s how it works:

1. Your business receives a lump sum based on your historic card turnover.
   
   
2. Repayments are taken automatically as a small percentage of daily card transactions.
   
   
3. During quieter periods, repayments reduce in line with lower sales.
   
   
4. When trading increases, repayments rise naturally with your revenue.
   

Why seasonal businesses use merchant cash advances

Seasonal businesses often need funding at very specific points in the year – before peak trading begins or to bridge quieter months.

Merchant cash advances are commonly used to:

• Prepare for peak season: Fund stock, staffing, or marketing ahead of busy periods.
• Cover off-season costs: Manage rent, utilities, or payroll during quieter months.
• Respond quickly to opportunities: Take advantage of short-term growth without long approval processes.
• Avoid fixed repayments: Reduce financial pressure when sales temporarily slow.

Benefits of merchant cash advances for seasonal businesses

• Flexible repayments: Payments rise and fall with your card sales.
• Fast access to funds: Funding is often available within 24–48 hours.
• No fixed monthly instalments: Ideal for fluctuating income.
• Minimal security required: Funding is based on trading performance, not assets.
• Simple application process: Fewer checks than traditional lending.

Merchant cash advances compared to other funding options

Merchant cash advances work best as a short-term cash flow solution rather than long-term finance. If your business has predictable monthly income, a business loan may offer lower overall costs and structured repayments.

If you need short-term flexibility to manage day-to-day expenses, a working capital loan could be a suitable alternative. Some seasonal businesses also use an alternative overdraft facility to manage short gaps between income cycles.

Choosing the right option depends on how variable your income is and how long you need access to funding.

Is a merchant cash advance right for your business?

A merchant cash advance may be suitable if:

• A large proportion of your revenue comes from card payments.
• Your income fluctuates significantly throughout the year.
• You need funding quickly to prepare for peak trading.
• Fixed monthly repayments would create pressure during quieter periods.

Boost your cash flow Speak to an expert

How Novuna Business Cash Flow can help

At Novuna, we understand the challenges seasonal businesses face, from unpredictable trading patterns to the pressure of preparing for peak periods.

Speak to our experts today to help you make the right decision for your situation.