The summer months tend to divide businesses into two categories - those who are incredibly busy, and those whose trade goes a bit quiet. In either scenario, business loans can provide opportunities to help manage cash flow to maximise opportunities, or plan for periods of investment for during quieter periods. 

Short-term business loans to maximise seasonal businesses 

Seaside towns across the UK see an influx of visitors in the summer months, for obvious reasons. Take the popular holiday destination of Salcombe, in Devon. It is said to have a permanent population of 2,500, which rises to 30,000 in the summer. That provides businesses with a distinct window of opportunity in which to make the majority of their money for the year. 

However, it also means that they enter their busiest time following a lengthy period of quieter trade. Even amongst the savviest of business owners, that transition can present cash flow challenges, especially in times where they are preparing for more customers to arrive - ensuring they have enough stock, employing seasonal staff, investing in marketing, merchandise, maintenance, and so forth.  

At Rivers, short-term business loans are available for terms between three and 12 months in amounts ranging from £5,000 to £100,000. This makes them perfect for the requirements of seasonal businesses as they prepare for busy periods, and so they can make the most of these pivotal times. 

Uses include, but are not limited to: 

Inventory stocking before the peak season 

Example: A beachside restaurant before the holidays or a garden centre before spring. 

You may need to buy large amounts of inventory in advance of peak periods at a time where the coffers are low and knowing you won't see revenue for a few weeks or months. 

Hiring seasonal staff 

Example: A ski resort in winter or a theme park in summer. 

You need to get staff in place a little before customers arrive, to get them trained and in situ on time. That means wages for temporary employees need to be paid even before profits start rolling in, and you may also need to provide uniforms. 

Marketing campaigns 

Example: A toyshop selling buckets and spades for the school holidays or a Halloween costume shop in October. 

Short-term loans can fund marketing efforts to maximise visibility during short selling windows and place you in a preferable position against competitors. 

Equipment maintenance and upgrades 

Example: A landscaping business getting mowers serviced in early spring.  

Seasonal operations often rely heavily on equipment that must be repaired or replaced during the off-season. 

Covering off-season expenses 

Example: A summer beach rental agency in the winter. 

Looking towards the winter months, or if the summer is your quieter time, seasonal businesses can also use short-term loans to help covering rent, utilities, tax payments, or insurance during the months when they generate little or no revenue. 

Find out more about Rivers' short-term business loans

Medium-term business loans for investing in growth 

On the other hand, if your business is heading into its quieter period, you might want to use the time and headspace to think about growth plans and investment strategies. This is where medium-term loans can be incredibly helpful, allowing you to maximise opportunities without dipping into funds that are reserved for cash flow. 

Rivers' medium-term business loans are designed for business growth funding and are available for terms between 24 and 60 months, in amounts ranging from £5,000 to £100,000. They are ideal for expansion, acquisition of new premises, and general business development. For example: 

Renovations or facility upgrades 

Example: A café might remodel its interior or kitchen during the off-season to minimise disruption. 

Quieter periods are ideal for construction or remodelling projects that improve customer experience or efficiency. 

Expanding product or service offerings 

Example: A boutique gym adding new classes or equipment. 

Businesses can use downtime to diversify or enhance their offerings to attract more customers in the next busy cycle. 

Investing in technology or systems 

Example: A shop implementing a new inventory management system. 

Medium-term loans can finance upgrades to backend systems that improve operations over time. 

Training and development 

Example: A seasonal hospitality business providing staff with customer service training in the off-season. 

The quieter periods are an excellent time to build a more skilled workforce, with a view to improving performance and customer satisfaction during peak times. It's also a great way to use staff time to your benefit, rather than resorting to cutting hours to save costs, which in turn helps to build loyalty. 

Strategic acquisitions or new locations 

Example: A restaurant chain or franchise buying a new location during slow months. 

Businesses may act on growth opportunities that require funding before the busy season boosts cash flow again. This is a great time to put headspace, energy and resources into new opportunities, so they're ready to hit the ground running when peak periods ensue once again.  

Find out more about Rivers' medium-term business loans