What Is Seasonal Working Capital ((top))

Here is an interesting look at what seasonal working capital is, why it acts as a silent killer for unprepared businesses, and how to master it.

| Industry | Peak Season | Primary SWC Component | Typical Financing | | :--- | :--- | :--- | :--- | | Agriculture (crop farming) | Post-harvest (autumn) | Inventory (grain), prepaid expenses | Bank line of credit, crop loans | | Retail (holiday) | Nov–Dec | Inventory (toys, electronics), cash | Trade credit, short-term bank notes | | Tourism (beach resort) | Summer months | Prepaid expenses (staff, marketing), receivables | Overdraft, revolving credit | | Construction | Spring/Summer | Work-in-progress, receivables | Supplier credit, factoring | | Tax services | Jan–April | Receivables (client fees) | Line of credit, owner capital |