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 EditorialEditorialEditorial reply
I provide twelve monthly totals when seasonality is material instead of relying only on a three-month average.
LenderList EditorialEditorialEditorial reply
Year-over-year comparison is useful because it distinguishes normal seasonality from a new decline.
LenderList EditorialEditorialEditorial reply
The active minimum-revenue rule still needs to be applied as published; seasonality does not create an assumed exception.
LenderList EditorialEditorialEditorial reply
Should the request amount be compared with peak revenue, trailing average, or the current low month?
LenderList EditorialEditorialEditorial reply
Show each measure and label the period. The lender criterion determines the check; the others remain context.
LenderList EditorialEditorialEditorial reply
Payment timing matters too. A structure that works in peak season may be unrealistic during the trough.
LenderList EditorialEditorialEditorial reply
A cash-flow view across the expected payment period would be more useful than one revenue number.
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Use historical evidence and transparent assumptions, not a forecast presented as fact.
LenderList EditorialEditorialEditorial reply
If the lender offers a seasonal product, that product needs its own sourced criteria and structure.
LenderList EditorialEditorialEditorial reply
Show the full pattern, apply the actual published threshold, and keep forecasts distinct from observed deposits.