Why a calendar beats an annual total
A seasonal business can be profitable for the year and still miss payroll in February. The problem is timing: money earned in July is spent by September. A calendar makes timing visible, month by month, so you can see the tight stretch before you are in it.
The template
Copy this table into a spreadsheet, one row per month. Fill it from your last twelve months of bank statements, then adjust for what you expect this year.
| Month | Cash in | Fixed costs | Variable costs | Net | Ending balance |
|---|---|---|---|---|---|
| Jan | |||||
| Feb | |||||
| Mar | |||||
| ...to Dec |
Fixed costs are rent, insurance, salaried payroll and existing payments. Variable costs are materials, hourly labor, fuel and fees.
Reading it: three questions
- Which month has the lowest ending balance? That is the month to protect.
- How many months in a row is net negative? That is how long the cushion has to last.
- When does spending start before income? Pre-season stock and hiring usually land weeks before sales.
An example, for illustration only
A landscaping crew earns most of its revenue from spring to autumn. For illustration, say winter nets minus $9,000 a month for four months, while pre-season equipment service and seed or plant stock needs $30,000 in the last winter month. The shortfall at the low point is $66,000, not just the $30,000 that stands out. The calendar shows the real size of the gap. These numbers are examples only.
Three ways to close the gap
- Reserve: set aside a share of every strong-month deposit.
- Shift timing: ask customers for deposits or earlier payment, order stock later.
- Working capital: bridge the low point with funding sized to the gap.
Most owners use a mix. Funding works best when it is timed before the low point, with bank statements that still look healthy.
How to keep the calendar alive
A calendar is only useful if it is updated. Once a month, replace the forecast with the real figures from your bank statement, then re-forecast the remaining months. Within two or three cycles you will see which assumptions were too hopeful. Many owners find that expenses land earlier than expected and sales later, which is the pattern that creates the gap in the first place.
Keep a note on each month: a trade show, a school break, a roofing season, a holiday. The note explains the number to you later, and to anyone you share the calendar with, including a funder reviewing your statements.
If you decide to apply
Funding runs from $25,000 to $5,000,000. We ask for about three months of statements, consider FICO 500 and above, and need no tax returns. If your recent months were quiet, say so in the application and attach your calendar's logic in your explanation. The application takes about five minutes with a soft credit pull.
Matching the calendar to your statements
The calendar uses the same figures that appear in your bank statements, which is why the numbers are easy to fill in. The bank statements we ask for cover about three months. If those three months fall in your quiet season, your calendar helps explain why deposits look the way they do.