How to negotiate MCA terms for seasonal businesses?

You run a landscaping business. Ninety percent of your revenue comes between April and October. Winter? Ghost town.

Your ski resort can make 60% of annual revenue in three months. What happens during spring through fall? Paying bills with thin margins.

Your Christmas tree farm brings in $200,000 in November and December. January through October? Steady but modest revenue.

Seasonal businesses face a unique challenge in financing: traditional lenders hate revenue volatility. But MCAs? They can actually work beautifully for seasonal businesses-if you know how to negotiate terms that acknowledge your reality.

Most seasonal business owners don't negotiate MCA terms. They accept the first offer. That's a mistake.

Here's how to negotiate better.

Why Standard MCA Terms Don't Work for Seasonal Businesses

Here's how a typical MCA works: 12% of daily card sales until you've repaid the advance amount plus fees.

For a stable business that is doing $5,000 per day in cards year-round, this works fine. Consistent repayment, predictable timeline.

For a seasonal business? It's a nightmare.

The Problem:

Your landscaping company borrows $40,000 in March prior to the busy season.

• At standard 12% holdback and $8,000 average daily sales, you pay $960/day during the busy season (April-October). In eight months, you've repaid $230,000+, covering the $50,000 total repayment plus extra.
• But then November hits. Revenue drops 80%. Your daily sales fall to $1,600. Your payment drops to $192/day.
• If you still owe $15,000 and you have to pay $192/day, it takes 78 days to finish the payment. That stretches into February of the next year.
• Now you are carrying MCA debt into your slow season when you can least afford it.

The Seasonal Business Negotiation Strategy

Step 1: Display your seasonal pattern

Don't apply with standard business documents. Bring seasonal documentation:

• Bank statements reflecting 24 months, which indicate clear seasonal patterns
• 12 months of merchant processing statements highlighting seasonal variance
• A simple visual chart showing your revenue by month

MCA providers want to know your business before committing. Clearly seasonal businesses showing their pattern are easier to underwrite for and pose less risk. Providers appreciate clarity. Use it.

Step 2: Propose a Seasonal Repayment Structure

Here's what most seasonal businesses don't realize: MCAs can be structured with seasonal flexibility.

Instead of accepting a straight 12% holdback throughout the year, propose:

"Higher holdback during busy season, lower during slow season."

Example for landscaping:

• April-October busy season: 15% holdback-you can afford higher payments
• November-March, slow season: 5% holdback-you need cash preservation

Why this works for providers:

• They get paid faster during your high-revenue months
• They reduce the chance that you can't make payments during slow months.
• Total payback period remains reasonable-even improves

You benefit because:

• Your slow-season cash flow isn't strangled
• You're not carrying debt into next year's slow season
• The higher payments during profitable months actually help you finish paying faster.

Step 3: Negotiate a Seasonal Advance Timing

• Instead of borrowing in January when you desperately need cash, negotiate borrowing before your peak season starts.
• For landscaping: borrow in late March for April needs, not February when revenue is still slow.
• For ski resorts: borrow in August for September opening, not June.
• Why this matters: You're borrowing when you can actually repay, not when desperation forces your hand.

Step 4: Preseason Revenue Bonuses

Propose this to the MCA provider:

"If my busy season revenue is above projections, I will increase the holdback percentage that month."

This sounds weird until you realize that extra revenue months should include extra repayment. You are not struggling, you are thriving; pay more that month.

Providers love this because:

• They get accelerated repayment when you are doing great.
• It aligns incentives-meaning you both benefit from strong seasons.
• It demonstrates commitment to rapid payoff.

Step 5: Negotiate a Pause or Reduction Option

• Request a clause that allows for temporary reduction of holdback during documented slow months.
• "If my January revenue falls below $1,000 daily, which is an established baseline, the holdback diminishes to 5% that month."
• This requires provider approval, but it is indicative of you thinking strategically-not desperately.

The Documentation That Gets You Better Terms

Seasonal businesses win negotiations by coming prepared:

• 24 months of bank statements (demonstrates a real seasonal trend)
• Seasonal revenue breakdown by month
• Explanation of what drives seasonality: weather, holidays, market cycles
• Your historical revenue projections for the next 12 months
• Tax returns for 2-3 years showing a consistent seasonal pattern

What providers reviewing this documentation see: sophisticated business owners who understand their business and plans accordingly.

That's the kind of client providers want to work with-and they'll offer better terms for it.

The Negotiation Reality

Most owners in seasonal businesses accept the first MCA offer, believing that terms are non-negotiable.

They're not.

MCA providers are businesses themselves. They want to:

• Get paid back
• Avoid defaults.
• Establish long-term relations with trustworthy clients.
• Adjust terms when it makes business sense

Your job: show them why seasonal terms make mutual sense.

Bring documentation. Show your pattern. Propose win-win structures. 

Demonstrate you are a sophisticated operator, not some desperate borrower.

Seasonal businesses that negotiate Merchant Cash Advance terms don't just get better financing, but they get financing actually designed for their reality.

That's a conversation worth having.