How to Qualify for an MCA as a Seasonal Business?

Rachel owns a Christmas decorations store, which fetches about 85% of her annual sales between October and December alone. Every year, she always faces the same kind of struggle in September: she requires $60,000 to replenish her stock ahead of the holiday season, yet her August bank statements reveal almost no income. Conventional lenders lock her out immediately for her “unreliable” income stream.

MCA Lenders? Well, they see something different. They see an operations-based business that is racking up around $200,000 in credit card transactions during its busy quarter, an indicator of activity and predictable cash flow. This time, Rachel is approved in 48 hours, brings in some merchandise, and has its best quarter yet.

There are challenges to funding a seasonal business; however, MCAs are ready to go with their business cycles. The key is understanding where MCAs put their value and knowing how to present a seasonal business to them. This is how seasonal structures qualify for funding in MCAs when traditional lenders refuse to give them the time of day.

Finding the Best Providers in MCA and the Language

At its most fundamental level, the MCA crowd has just one question: “Can this business make enough credit card volume to repay the advance?” The banking industry is seeking steady, year-round business; they know about seasonal fluctuations. They're not spooked by the quiet times reflected on your processing statements; they're happy about how robust you're when you're at full strength.

That is one key difference, and it is important. One weakness of traditional lending, revenue collected over a short period, is made into an advantage for MCAs

Core Qualification Rules for Seasonal Businesses

• Time in business: While most MCA providers require a business to have a six-month to one-year track record, if you are a seasonal business, it will take at least one complete season to turn a profit. For example, if you started a ski resort business last November, it will be one complete season by September.
• Volume of processing during peak season: This can be variable, but you'll want to show at least $10,000-$15,000 per month in card processing business during the peak. This is often the case with seasonal vendors, who can process more than that, possibly $30,000, $50,000, or $
• Business bank account: An active business checking account is required, along with off-season earnings deposited into the business. It doesn’t matter how much money the business makes or keeps off-season, as long as the bank recognizes the consistent peaking season deposits.
• Min credit score: While lenders want to see a personal credit score of 500-550, exceptions can be made for high volumes of loans. This is much more relaxed than what banks will want for credit scores of 680 or higher.
• Legal standing: Your business needs to be in good standing, licensed, not have any ongoing bankruptcies, and not have any tax liens. These are non-negotiable even with low processing volumes.

Approach 1: Apply During or Just After the Peak Season

Timeliness can be a big plus for approval chances and conditions. The optimal moment is when the data is processed or right after, when it is still ‘hot.’

A pumpkin patch would apply in October when thousands are processed each day. A tax preparation center would apply in March or April when their revenue is at its peak. A beach rental company would apply in July or August.

Why? Because the past 3-6 months of processing data are reviewed by the lender. If your best processing time is evident in those 3-6 months, you are viewed as good. There's little activity in off-season applications, resulting in difficulty in getting loans along with unfavorable terms.

Strategy 2: Provide Full Year Context

Do not assume the lender has any seasonal factors. Anticipate their model and revenues.

Make a one-page summary including the following:

• Peak seasons and their respective usual revenues
• Off-season months and low revenues
• Total processing done in a year and all seasons combined
• Evidence of consistency over several years, if present

Example: “Our landscaping company sustains an average of 80% of yearly revenue between April and October. This peaks at 40,000 dollars and 60,000 dollars on a month-to-month basis. We are slow during winter when we close due to snow. We have processed an average of 300,000 dollars on an

This story keeps the idea of the summer/winter dip from being looked at as a problem when it’s just an indication of your typical track record.

Strategy 3: Emphasize Year-over-Year

To make your point, if you’ve completed several seasons, evidence improvement. Extract processing figure trends from similar periods over several years.

“December 2023: $45k; December 2024: $62k” represents a prosperous business where demands are increasing, although Jan-Sep may be uneventful

"Lenders love growth stories, they signify higher revenues in the next seasons."

Strategy 4: Focus on Your Repayment Advantage

The advantage of seasonal businesses is that the repayment schedule gives you an edge, and that is that you will be repaying the loan faster during the peak season since you will have more business. You won’t be under so much pressure during the

Let’s break it down saying, “Our Christmas season is November through December, with card sales of approximately $180k. Drawing on the $50k cash advance in October allows us to carry high-ticket inventory, with the daily repayment due primarily in our lucrative months with little effect through September.”

This harmonization with your beat demonstrates sophistication that lenders will appreciate.

Strategy 5: Show Cash Reserves or Secondary Revenue

If you have seasonal reserves or off-season income, record it. It will provide security for the lenders as well.

“Although the peak period is during summer, we hold reserves of $25k for off-season spending.” Small off-season earnings also matter: “Our ski resort earns $8k each month in summer from mountain biking and scenic lifts, which gives us basic cash flow.”

Strategy 6: Ask for Realistic Advance Amounts

Seasonal businesses should be particularly conservative about advance amounts. A good rule of thumb: request no more than 20% to 30% of your total peak season processing volume.

Three-month peak value is $150k. This is sought for $30k-$45k. This is too large and triggers doubts about financial literacy. 

Strategy 7: Collaborate with Seasonal-Friendly Providers

Not all MCA sellers offer the models. There are some that have year-round processing while others are expertise in seasons. They understand their model. 

Direct question: “Do you work with seasonal businesses? Do you understand models where 70%+ of revenue comes in a concentrated period?” Pick partners who "get" your model early on, and it will definitely help. What To 

The Bottom Line 

Businesses that are seasonal can be qualified for merchant cash advances. This can even be easier than securing traditional funding. The trick is knowing what the lenders are looking at, getting the application in at the right time, and looking at the seasonal aspect of the business as an advantage rather than an issue. Your seasonality is not a weakness. This is a business model, and a good MCA partner will work with your business rhythm.