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Summer is in full swing, and for many small businesses, especially those in seasonal industries like tourism, retail, food service, and recreation, it’s go time. A profitable summer season can make or break the year, but to capitalize on it, your business must be prepared. That takes planning and cash. If you don’t have cash on hand, a small business loan might be the answer.

These busy months can bring a huge influx of customers, but they also demand significant investments in staffing, inventory, space updates, and marketing.

Have you refreshed your space for the influx of customers?

Whether you’re running a beachfront café or a Main Street boutique, first impressions count. Fresh paint, upgraded signage, outdoor seating, and new fixtures can help attract more foot traffic and enhance customer experience. But renovations or even simple upgrades require cash flow, often before the rush of revenue begins.

Have you hired and trained enough seasonal staff?

Service-oriented businesses thrive or fail based on customer experience. Hiring seasonal staff isn’t just about getting more hands-on deck, it’s about ensuring those hands are trained to deliver the kind of service that keeps customers coming back. Payroll costs, onboarding, and training time all represent a significant investment early in the season. Summer workers are often young and inexperienced, and they tend to be more nonchalant than older staff when it comes to not showing up because they don’t feel like coming into work. Thus, it’s important to hire and train accordingly.

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Are you stocked up on inventory to meet peak demand?

From ice cream shops to retail stores to landscaping services, stocking up is critical to avoid missed sales. However, bulk inventory purchases can strain your working capital, especially if you’re still recovering from a slower off-season. Securing funding can help ensure enough inventory is on hand for peak selling periods.

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Do you have a plan to manage fluctuating costs?

Summer can also bring unpredictable cost increases. Utilities like electricity may spike due to increased A/C usage, and gas prices often rise during summer travel months. Fuel costs can take a big bite out of small business earnings for establishments that rely on delivery vehicles or travel. Unexpected cost increases can squeeze margins if you’re not adequately prepared.

If summertime preparations will put a big dent in your cash flow, it may be time to consider a small business loan. The good news is that there are many funding options to help small business owners manage periods of growth and meet seasonal demands:

1. Small Business Term Loans

These are traditional bank loans where you borrow a fixed amount and repay it with interest over a set period of time. They’re ideal for one-time purchases like equipment upgrades, inventory buys, or renovations.

While inflation has eased and President Trump continues to put pressure on Federal Reserve Chair Jerome Powell to cut rates, the central bank has not lowered interest rates in several months. At the Federal Open Market Committee (FOMC) in June, Chair Powell signaled that rate cuts are likely to occur sometime this year, it would not be surprising if the Fed takes action at the next FOMC meeting scheduled for July 29-30.

Interest rates currently range from 6% to 15% depending on creditworthiness. If you are in a hurry to secure funding, online lenders can typically provide capital in as little as 1-3 days, while bank term loans often take weeks.

2. Business Lines of Credit

A line of credit allows you to draw funds as needed up to a credit limit, making it a flexible option for fluctuating costs or unexpected expenses during the season. The good thing about having a line of credit is that you only pay interest on what you have utilized, rather than the full amount that the line provides.

Related: Four Ways To Know If A Business Line Of Credit Is Right For Your Company

The interest rates are usually variable, in the 8% to 20%. As with term loans, online lenders are usually able to make a business line of credit available in 24–48 hours.

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3. SBA Loans

Loans backed by the Small Business Administration, such as the SBA 7(a), tend to offer low interest rates and long repayment terms, but they come with more paperwork and longer approval times.

As of mid-2025, SBA 7(a) loan interest rates range from about 10.25% to 13.25% depending on loan size and lender terms. However, the government-backed loans typically take a few weeks for approval and funding. Assuming that you have already gathered required documentation and prepared a business plan, processing of the application usually takes 2-4 weeks after the paperwork has been submitted. The loans are not made by the SBA itself, rather the funding is provided by approved lenders for whom the government guarantees a portion of the money if a borrower fails to pay the money back.

4. Merchant Cash Advances (MCA)

For businesses with strong credit card sales, an MCA provides upfront cash in exchange for a percentage of future sales. MCA funding is an alternative for small business owners who have bad credit – or even no credit history at all – and cannot qualify for traditional loans.

These are comparatively easy to access (compared to bank loans) but come at a high cost of capital. For example, MCAs charge a “factor rate” (ex: 1.2 or 1.4), meaning that a $10,000 advance could require $12,000–$14,000 repayment. This is a much higher rate than a traditional bank loan or SBA loan. A primary advantage of MCA funding is that the money can arrive within 24-48 hours.

What Should You Look for in a Small Business Loan Lender?

When choosing a loan, it’s important to consider several key factors beyond just the interest rate.

Look at the total cost of borrowing, including fees and other charges, to understand the full financial impact.

Evaluate the repayment terms and schedule to ensure they align with your financial situation and ability to repay.

The speed of funding can also be crucial, especially if you need access to funds quickly.

Finally, consider the reputation and transparency of the lender to ensure you are working with a trustworthy institution that provides clear and honest information.

Is a Small Business Loan Right for Your Business?

A small business loan isn’t a magic solution—but it can be a powerful tool to help you meet demand, grow revenue, and set your business up for long-term success. If you’ve planned strategically but need help bridging the cash flow gap between preparation and profit, securing the right kind of financing can make all the difference.

Before taking on any debt, consult your accountant or financial advisor to ensure the loan fits your business model and seasonal revenue projections. But don’t let lack of capital hold your business back during its most important months. A small business loan can help keep you afloat in the summer and throughout the year.