New Zealand has a lot of seasonal businesses. Queenstown and Wānaka tourism operators swing between ski and summer seasons. Hawke’s Bay and Bay of Plenty horticulture runs to harvest. Coastal cafes live on summer weekends. Landscapers, pool builders and roofers slow down in winter; heating and firewood businesses do the opposite. Retailers make much of their year between November and Christmas.
The businesses are often healthy across a full year, but the cash runs thin at the same point every year. Here’s how to fund that without scrambling.
What makes seasonal funding different?
The main risk isn’t the lender — it’s timing. If you apply in the middle of your quiet months, a lender reviewing the last three months of statements sees your low point and may offer far less than your annual turnover supports. Apply at the right time, with the right statements, and the picture changes completely.
Which funding suits a seasonal business?
A business line of credit. Usually the best fit. You get an approved limit, draw on it through the quiet months for rent, wages and loan repayments, and repay it as the busy season’s takings come in. You typically pay only for what you use. Available to businesses usually trading 6+ months, sized to turnover and bank statements. See our answer on whether you need a line of credit.
A short-term unsecured loan. A lump sum for a specific pre-season need: stock, a refurbishment, marketing, a new vehicle before the rush.
A property-secured loan. For larger investments — a new site, a big equipment purchase, or consolidating debts that have built up over a hard season — equity in New Zealand property can secure $20,000 to $1m, with no financials needed for the initial assessment.
When should I apply?
The best time is at the end of your busy season, when your recent bank statements are strongest, and before the quiet months begin, so the facility is ready when you need it. Applying in a panic in the middle of the off-season is the most expensive and stressful way to do it.
Provide twelve months or more of bank statements if you can, so the lender sees the full cycle rather than a slice of it. And explain the pattern up front: “We turn over most of our year between December and March.”
Plan the quiet months before they arrive
A simple seasonal cash plan makes both the business and any lender more comfortable:
- Map the year. Month by month, estimate takings and fixed costs. Our guide on preparing a cash flow forecast walks through it.
- Find the low point. The month where cumulative cash is lowest tells you how big a facility you need.
- Diary the tax. GST and provisional tax don’t care about your season. Check where your due dates fall against your quiet months — our GST and provisional tax guide sets out the calendar. If they collide, ask your accountant about filing frequency or the provisional tax method.
- Talk to your landlord and suppliers. Seasonal rent arrangements and supplier terms can reduce how much you need to borrow.
- Set the facility up early.
What about staff in the off-season?
Keeping good staff through a quiet season is often worth the cost — rehiring and training every year is expensive. If a line of credit lets you keep a core team, it can pay for itself. Just make sure PAYE and KiwiSaver deductions stay current; employer deductions carry heavy penalties when they fall behind.
How is seasonal funding priced?
Every facility is priced on the individual situation — your trading pattern, the security, the limit and how it’s used. We compare across our lending partners and explain the total cost of a realistic draw-and-repay scenario, so you can judge it properly.
Plan it now
If your quiet months are coming, ring the Hotline now rather than in the middle of them. A specialist will help you size a facility to the low point. Or request a call back.