SBA Loan Structuring and Seasonality

Structuring deals with Small Business Administration (SBA) loans can be complex, particularly for businesses that exhibit seasonality in their cash flow. Seasonal businesses often require significant advance inventory investments prior to peak sales periods, creating a challenge for managing debt repayment during off-seasons. For instance, with a gift basket business primarily generating revenue during the holidays, navigating cash flow becomes crucial to avoid potential default issues. The discussion emphasizes that understanding the cash flow intricacies within seasonal frameworks is essential for anyone considering such acquisitions.