How extreme is the swing?
It varies by town, but some restaurants see sales fall by more than half in the off-season. Some close for weeks or months; others stay open with reduced hours.
Use your own monthly history to see the swing. The decision to stay open or close depends on whether off-season sales cover the added costs of staying open.
How do restaurants plan?
Save a large share of peak profits, reduce hours and menus off-season, cater to locals with specials, and line up staff for next season early.
Locals are the off-season lifeline. Specials, events and loyalty programs aimed at year-round residents keep the doors open.
When does funding fit?
When peak season reserves fall short of the off-season gap, or when the restaurant needs to prepare for the next season before it starts.
Pre-season costs, such as repairs, hiring and inventory, often fall in the last off-season weeks. Funding can bridge until the first busy weeks.
| Season | Focus | Cash action |
|---|---|---|
| Peak | Maximize sales | Save a large share |
| Shoulder | Adjust hours | Trim costs |
| Off-season | Locals, events | Use reserves |
| Pre-season | Hiring, repairs | Bridge if needed |
Worked example: a beach-town seafood restaurant
A beach-town seafood restaurant that averages $60,000 in monthly deposits across the year, heavily weighted to summer, needs $20,000 in late spring to hire, repair and stock before the season. Using an illustrative factor rate of 1.22, $20,000 would mean $24,400 repaid over roughly 6 months: 26 weekly payments of about $938.
That works out to about $4,067 a month, or 6.8% of the $60,000 this business deposits monthly, and the total cost of the money is $4,400. The first busy summer months cover the payments, and the term ends within the season.
For comparison, repaying the same $24,400 over 4 months would lift the monthly outlay to about $6,100, or 10.2% of deposits, and a shorter term can come with a lower factor rate, so comparing both versions side by side is worthwhile.
| Average monthly deposits | $60,000 |
|---|---|
| Amount funded | $20,000 |
| Factor rate (illustrative) | 1.22 |
| Total repaid | $24,400 |
| Cost of the funding | $4,400 |
| Term | about 6 months |
| Weekly payment (26 payments) | $938 |
| Payments as a share of deposits | 6.8% |
Who this fits
Usually a fit
- Restaurants in seasonal markets
- Operators preparing for peak season
- Owners with strong peak history
When another route makes more sense
- Restaurants without seasonal history
- Owners with sufficient reserves
- New restaurants without history
What you’ll typically need
- Recent business bank statements
- Seasonal sales history
- Business details
Frequently asked questions
Do funders understand seasonal deposits?
Many review a full year of statements to see the pattern.
Should I close in the off-season?
Compare costs of staying open with sales.
Can I choose weekly payments?
Ask; weekly may fit uneven deposits better.
Can lower credit still get pre-season prep covered?
Often, yes. A restaurant owner with a score from 500 can apply for pre-season prep, and as credit improves the offers generally get better.
Season about to start?
Apply and get ready.
Updated October 6, 2026