How should I explain a fab shop’s seasonal cash gaps when I ask a lender for help?

Lenders hear about seasonal gaps often, so they respond best to a clear picture and a plan. Start with a cash flow forecast, built from your actual receipts and payments across a full cycle. Mark the low points and the reason behind each. For a fab shop it may be steel bought for a big job before the customer pays, or a quiet stretch when contractors pause.

Explain what is predictable. If the same gap appears every year, say so, and show how you managed it before. Include how the shop collects from customers, what deposits it takes and how long it waits for payment. A lender may care as much about the habit of payment as about the gap.

Present the ask precisely: the amount, the period and the source of repayment. Offer ways you are working to narrow the gap, such as progress billing, deposits or better scheduling. Your accountant can prepare statements on the same basis the lender uses, since cash and accrual views can look different. Be ready to answer questions about what happens in a bad season.

Key takeaways

• Build a cash flow forecast from real receipts and payments across a full cycle.
• Say what causes each gap and show how you handled earlier ones.
• State the amount, the length of time and the repayment source for your request.
• Prepare a plan for a weaker season than usual.