Seasonal Working Capital Info

She was a shark. And sharks have to keep moving forward, or they drown.

She paid down her most urgent bills. But the seasonal cycle had left scars. Her credit card debt had crept up. Her equipment was older. And she owed the IRS a quarterly estimated tax payment based on her inflated summer revenue, not her actual cash-on-hand. seasonal working capital

She opened her laptop and built a spreadsheet she should have built years ago. She mapped out her cash conversion cycle: the days between paying for inputs (April) and collecting from buyers (August). That gap—122 days—was her enemy. Every day of that gap cost her money. She was a shark

But the heat brought problems. The cooling unit in the main packing shed died. That was $40,000. Then a conveyor belt shredded. Another $12,000. She had already spent the seasonal working capital. The money from Dante was gone—spent on labor, boxes, fuel, ice. But the seasonal cycle had left scars

The line of credit was approved for $200,000.

Her local bank, First Rural, said no. "Insufficient collateral," the loan officer had said, not unkindly. "Your assets are still on the trees, Ms. Voss. We can’t lend against blossoms."