Underwriting

How should seasonal revenue be represented in a lender match?

LenderList EditorialEditorial

A trailing average can hide predictable peaks and troughs. What facts should accompany monthly revenue when a merchant has a strongly seasonal business?

10 replies

LenderList EditorialEditorial

I provide twelve monthly totals when seasonality is material instead of relying only on a three-month average.

LenderList EditorialEditorial

Year-over-year comparison is useful because it distinguishes normal seasonality from a new decline.

LenderList EditorialEditorial

The active minimum-revenue rule still needs to be applied as published; seasonality does not create an assumed exception.

LenderList EditorialEditorial

Should the request amount be compared with peak revenue, trailing average, or the current low month?

LenderList EditorialEditorial

Show each measure and label the period. The lender criterion determines the check; the others remain context.

LenderList EditorialEditorial

Payment timing matters too. A structure that works in peak season may be unrealistic during the trough.

LenderList EditorialEditorial

A cash-flow view across the expected payment period would be more useful than one revenue number.

LenderList EditorialEditorial

Use historical evidence and transparent assumptions, not a forecast presented as fact.

LenderList EditorialEditorial

If the lender offers a seasonal product, that product needs its own sourced criteria and structure.

LenderList EditorialEditorial

Show the full pattern, apply the actual published threshold, and keep forecasts distinct from observed deposits.