Business illustrated

Preparing for Seasonal Swings in Business While Acquiring the Equipment You Need to Operate

ow to purchase equipment for your business with no cash and combat unexpected equipment purchase requirements and seasonal cashflow restrictions.

With less customers, you’re likely to experience a depressed cashflow and you need to budget for expenses in a more conservative way unlike you would in busier months. Like a squirrel preparing for the winter, spend your abundant months setting aside finances to help cover any costs, such as your static overhead expenses, that cannot be covered by the revenue generated in the off season. You may need to consider cutting costs through reducing staff, making less inventory purchases, and even lowering your hours of operation.


Seasonal Business Equipment Financing Plans

If you find your business is consistently seasonal, a viable option when considering equipment financing and leasing would be to take advantage of seasonal financing plans. For example, if you are in the snow removal business, you could consider making payments for snowplows in the winter months and marry your cashflow to the equipment expenditures of that time. Come the summer months, your payments could be reduced to a nominal amount such as a $50 a month touch payment when the equipment is not in use. This same scenario plays out in the manufacturing sector, particularly in North America, were in the summer months output can be restricted by vacationing staff and clients and have an impact on a company’s cashflow position.

Need Equipment Now but Can’t Pay Until Later

You may find that you need to acquire equipment unexpectedly to meet the demands of a new contract, increased workload, or to unexpectedly replace equipment that has broken down. Having these unexpected business events arise can create both opportunities and stress if you have not prepared for such a situation. This can especially be a burden on cashflow.

In circumstances such as these, Jocova Financial offers equipment financing plans that allow you to acquire the equipment you need today, while deferring payments until a time that is more optimal and aligned with cashflow; such as busier seasons or when payment for contacts start to come in.

Typical options include:

  • Start of a new contract that has a 30 to 90-day payment deferral
  • Don’t Pay for 90 Days or $1 a Day plans

Be sure to ask your equipment supplier if this is an option for your business or connect with an equipment financing company first to get pre-approved before seeking equipment.


Step-Up Equipment Financing Payment Options

If your business is entering into a new contract where you have had to purchase new equipment to increase output or are bringing on a new line of work for your business that also requires additional equipment, you may want to consider a step-up equipment financing plan. In this scenario, you would start off with lower payments and build up to the full payment stream as you get busier with work and collecting invoice payments. Typical step-up equipment financing plans run from one to six months but can also be customized for almost any business and cashflow scenario.

Step-up equipment financing options also allows you to also enter new markets with products and services that the equipment allows you to offer. The step-up plan allows you to build a customer base and start generating revenue from the equipment with small monthly equipment payments and increase the payments as you increase sales.


Take Advantage of Slower Times in Business to Get Ahead

The slow season can give you much needed time to reflect on the success of your busy season and how to maintain your momentum in the upcoming months and years.

Business owners and managers should take time to access key segments of their business:

  • Planning and Goal Setting
  • Strategy
  • Research
  • Organize
  • Training
  • Customer Service
  • Implement new systems and processes
  • Upcoming equipment and capital purchase
  • Budget
  • Sales and Marketing
  • Technology & IT


All businesses experience peaks and valleys as they grow and in the general, seasonality of their business no matter what industry they service. It is important to have a plan in place to get you through the slower times in business and for unexpected issues that arise but all the while keep you aligned with the mission of your business and servicing customers.

For equipment financing issues that arise, there are several factors business owners should consider to combat seasonal cashflow restrictions or unexpected equipment purchases. These considerations are seasonal payment plans, deferred payment options, and step-up equipment financing options. Ask your equipment supplier about payment plans that suit your cashflow needs or contact Jocova Financial to get pre-approved for equipment financing before shopping for equipment.


See also Why Lease Equipment to review the benefits of equipment financing and equipment leasing for your business.

References: Originally posted on Jocova Financial