Seasonal funding for manufacturing - tools to navigate production cycles
Thursday 14th August 2025
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Cash flow challenge: I face large material and production costs ahead of seasonal peaks, leaving cash tight until customer payments arrive.
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Perfect for: Manufacturing firms needing flexible finance solutions to bridge production costs during downturns or lulls.
Novuna helps manufacturers access funding to keep production consistent during seasonal demand changes, either through our award winning in-house service or by comparing the market to find the best fit for your needs.
We connect you with providers who understand manufacturing cycles, help you apply, and make sure you get the right deal to keep production on track.
Why seasonal production cycles create cash flow pressure
Manufacturers often experience peaks and troughs tied to customer demand, weather, or retail schedules. Yet operational expenses continue regardless of demand, leading to periods when working capital is tight or tied up in inventory.
Financial strategies to manage seasonal production cycles
- Revolving credit and working capital lines: Flexible funding that you can draw on as needed and repay as cash flow recovers - helpful when demand is slow or variable.
- Invoice finance (factoring or discounting): Access cash tied up in your unpaid invoices especially valuable when you’re waiting on payment for large production runs
- Short-term business loans or asset refinance: Use short-term loans to cover raw material costs or refinance machinery to free up capital for operations.
- Seasonal payment plans for equipment acquisition: Finance machinery purchases with flexible terms and seasonal repayment schedules.
- Grants, tax incentives, or matched funding: Look to regional grants, capital allowances, or government-backed schemes to fund equipment or tech improvements.
- Financial foresight and planning: Monitor production trends, map financial needs to cycles, and prepare funding ahead of seasonal shifts to avoid last-minute scramble.
Choosing the right funding mix
Evaluate each option based on speed, flexibility, cost, and alignment with your production cycles. Combining tools like pairing invoice finance with short-term loans can give you liquidity without excessive borrowing costs.
How Novuna Business Cash Flow supports this
We offer flexible, expert support that maps to your production cycle. Whether it’s invoice finance, short-term borrowing, asset refinance, or long-term investment, we guide you to the best fit that preserves cash flow and helps you scale confidently.
