My business is seasonal. Can I still borrow?

Why can seasonal businesses look risky on paper?

Because a lender skimming the last three months of statements might see a business in hibernation. A Barossa contract harvester in October, a Thredbo ski-hire shop in January, a Christmas-heavy gift store in March — each can look like it’s running out of steam, when really it’s just the off-season.

Mr’s job, and yours, is to make sure the lender sees the whole year.

How do I show the full pattern?

• Twelve months of business bank statements, not three or six.
• Your last four BAS, which show turnover quarter by quarter.
• Two years if you have them, so the lender sees the cycle repeat.
• A one-paragraph explanation: “Our revenue peaks from February to April with harvest; May to January are maintenance and contract months.”
• Forward evidence — bookings, harvest contracts, pre-orders — for the coming peak.

When the quiet months are explained and repeated year after year, they stop being a warning sign and become a predictable pattern.

Which loans suit a seasonal business?

Need	Suits	Why
Covering costs in the off-season	Line of credit	Draw in quiet months, clear in busy ones
Stocking up before the peak	Short term loan or line of credit	Repaid from peak sales
Equipment for the season	Term loan, timed before the peak	Earns its keep in the busy months
Big upgrade or expansion	Property-secured loan	Longer term smooths repayments across the year

The line of credit is the natural fit for most seasonal swings. See line of credit or term loan for the details, and the warning sign to watch for: a balance that never clears even after the peak.

Can repayments flex with the seasons?

Some lenders offer structures that suit seasonal cash flow better than rigid equal repayments — ask about it. Even when repayments are fixed, a line of credit alongside a term loan can absorb the quiet months. A specialist can match the structure to your calendar.

What about tax and super in the quiet months?

This is where seasonal businesses get caught. BAS can fall due in your quietest quarter, based on your busiest. And from 1 July 2026, under Payday Super, employers must pay super for each payday, with contributions due in employees’ super accounts within seven business days — so there’s no longer a quarterly lag to lean on. Seasonal staff in the peak means super due in the peak, which is fine; the trick is not to spend the GST and PAYG you collected in the peak before the BAS arrives.

Mr’s seasonal habits:

1. Set aside GST, PAYG and super as money comes in, in a separate account.
2. Forecast the off-season month by month before the peak ends.
3. Arrange a line of credit while statements are strong, not when you’re already short.
4. Chase debtors hard at the end of the peak.

Read payday super and cash flow and borrowing to pay your BAS for more.

An illustrative example

A Barossa contract-harvesting business earns most of its revenue from February to April. Each year, it needs to service machinery and pay a skeleton crew from May to January. The owner applies for a line of credit in April, when the statements show a strong harvest, and supplies two years of BAS showing the same pattern. The facility is drawn through winter and cleared each autumn. Twelve months later, the lender sees a facility that behaves exactly as promised — a strong record for next time.

What if last season was bad?

It happens: drought, floods, a cancelled festival, a road closure. Explain it clearly, show what’s different this year, and consider property security if the numbers have taken a dent. A lender would rather hear the story from you than spot the gap and guess.

How do I explain seasonality in the enquiry?

Briefly, with numbers. Something like: “Turnover runs at roughly $120k a month from November to March and $35k a month from April to October; this pattern has repeated for four years.” Add what the loan is for and when it will be repaid, tied to the season: “Repaid from the December to February trading period.”

That one paragraph turns a lender’s first impression from “turnover is falling” to “this is a seasonal business with a predictable cycle”. Supporting it with twelve months of statements and four BAS does the rest.

Should I keep a cash reserve as well as a facility?

Ideally, both. A cash reserve built in the peak handles the predictable quiet months without paying for borrowed money. A line of credit handles the unpredictable — a late start to the season, a wet summer, a big repair at the worst moment. Relying on the facility for every quiet month costs more over time, and a lender reviewing it will prefer to see it used and cleared rather than relied upon all year.

Do lenders understand my industry’s season?

Many do, especially for common seasonal patterns like tourism, retail, agriculture and construction. Even so, never assume. Spell out your cycle in the enquiry; it takes a minute and removes the guesswork for whoever reads it.

Seasonal business, predictable pattern?

Tell Mr about your year in about 60 seconds — your busy months, your quiet months and what the money is for. There’s no credit check to enquire, your details aren’t broadcast to lenders who only read three months of statements, and a real person will help you present the full cycle properly. Accurate turnover figures across the year make all the difference. See if you qualify.