Strategies for Repaying Your Merchant Cash Advance during the Slow Seasons

It's January. The landscaping business that was crushing it in September is now only trickling in revenue. The beach shop printing money in July looks at empty aisles today. The holiday boutique doing 70% of its annual sales in November and December is now. Well, quiet. And that Merchant Cash Advance that seemed so manageable during peak season? It suddenly feels a whole lot heavier.

Here's the thing nobody tells you when you're riding high during the busy season: the slow months will come. They always do. But with smart strategies, you can navigate MCA repayments during the lean times without drowning in stress or draining your business dry.

Let's talk about how to actually survive-and even thrive-during the slow season, while keeping your MCA obligations under control.

Strategy 1: Build Your War Chest During Peak Season

This is the golden rule, and it starts before slow season hits.

When you're killing it during peak months, and cash is flowing, it's tempting to celebrate: new equipment, staff bonuses, that vacation you've been putting off.

Stop. Breathe. Think ahead.

In those months of high revenue, set aside a certain percentage-even just 15-20%-in a separate "Slow Season Survival" account. Label it as such. Don't touch it. Forget it exists.

Here is the math: If you're processing $40,000 in card sales per month in peak season at a 15% MCA holdback, then $6,000 per month goes toward repayment. In the slow season when those sales drop to $10,000, your holdback drops to $1,500. That's a $4,500 difference.

If you banked even half that difference during your three peak months, you've got $6,750 cushion for the slow months ahead. That's breathing room. That's survival money.

Strategy 2: Maximize Every Dollar of Card Sales

Every single credit card transaction is more important than ever during the slow season.

Get aggressive about encouraging card payments:

• Make cards the path of least resistance. In other words, if paying by card is easier than paying cash, people will use cards. Invest in tap-to-pay, mobile payment options, and seamless checkout processes.
• Incentivize card usage where legally permitted. Minor discounts, loyalty points, or VIP perks given for card payments influence customer behavior. Even an increase in your card percentage from 60% to 75% makes a meaningful difference when every dollar counts.
• Train your staff. During the slow season especially, staff should present card payment as the default option - not an alternative.

Remember that your MCA repayment is directly based on card sales volume. If the total sales are down but the percentage that goes to cards increases, this will keep your repayment manageable and show consistent activity.

Strategy 3: Find Off-Season Revenue Streams

The best defense is a good offense. Don't just accept that a slow season means no revenue-get creative.

• Complementary services: Your landscaping company could add snow removal in winter. Your pool maintenance business could offer hot tub servicing. Your tax preparation firm could do bookkeeping year-round.
• Online expansion: Can you sell products online during the off-season? Gift cards for future services? Digital products or consultations?
• Partnerships: Partner with firms that complement your services. A wedding photographer might also partner with venues for corporate off-season events.
• Maintenance and prep work: Offer discount services to customers for getting ready for next season. Winter landscape design consultations. Pool opening packages sold in March.

These don't need to replace peak season revenue - they just need to generate enough card transactions to keep your MCA repayment reasonable and your business operational.

Strategy 4: Communicate with your MCA provider

Here is something that few business owners will know: many MCA providers will work with you if you are proactive and forthright.

Reach out before you're in crisis. Describe your seasonal business model to them. Show them your peak season performance and your plan for managing the slow seasons.

Some providers offer:

• Adjusted holdback percentages for documented slow seasons
• Temporary payment arrangements
• Modified terms for established customers with good track records

The key word is proactive. Calling when you are already three weeks behind is crisis management. Calling beforehand is professional business planning.

Not all providers will accommodate, but you'll never know unless you ask. And those who work with seasonal businesses understand the rhythm, they just want to see you have a plan.

Strategy 5: Slash Unnecessary Expenses

Audit season is slow. Go line by line through every single business expense with a critical eye:

• What can be paused? That expensive software subscription that you barely ever used? Pause that for three months. Extra marketing spend when no customers are coming in? Cut it. Non-essential memberships? Freeze them.
• What can be downsized? Reduce inventory orders to bare minimums. Scale back on hourly staff. Cut operating hours if foot traffic is non-existent.
• What's negotiable? Call vendors and negotiate better terms. Many would rather give you a discount than lose your business altogether.
• For every $500 you cut from monthly expenses, the more money that's available for vital costs and MCA repayments.

Strategy 6: Utilize Slow Seasons for High-Value Activities

You can't change that revenue is down. You can change how you use the extra time.

• Marketing for next season: building your email list, creating content, developing partnerships, and planning promotions. You know, all that stuff you're too busy to do during peak season.
• Process Improvement: Streamline operations, reorganize inventory, and update systems. Efficiency gains will pay dividends in the next busy season.
• Skill development: Take that online course. Learn new techniques. Level up your craft to come back stronger.

These activities don't generate immediate cash, but they multiply your effectiveness during peak season, which makes next year's slow season easier.

Strategy 7: Get Selective About New Opportunities

• In the slow season, you may be tempted to say yes to every opportunity, even marginally profitable ones.
• Sometimes that makes sense. But if a job requires significant upfront costs, takes time away from better opportunities, or won't generate meaningful card sales for MCA repayment, then it's not worth it.
• Be strategic. Target opportunities that actually move the needle, not just busy work that makes you feel productive.

The Mental Game

• Here's the truth: the slow season is stressful even with perfect planning. You'll have moments of panic. That's normal.
• Just remember, you survived last slow season. Thousands of seasonal businesses accomplish this every single year. You are not unique in facing this challenge-which means there are proven strategies you are implementing.
• Your MCA felt manageable in peak season because it was. It's not about making the slow season feel like peak season - that's simply not possible. The goal is to make the slow season survivable until your busy months return.

Looking Forward

Wherever you are within a seasonal cycle, the time is now, and it makes the most sense to begin enacting these strategies.

Peak season? Start banking reserves and planning ahead.

In the slow season? Perform the expense cuts and revenue generation strategies now.

Between seasons, you say? Perfect timing to build those relationships with your MCA provider and set up systems for future success.

Your seasonal business model is not a weakness; it's just one of those characteristics that requires smart management. With these strategies, your MCA becomes manageable rather than a constant source of stress.

The slow season will eventually end. It always does. Your job is making sure your business is still standing, strong and ready, when the busy season returns.