For some businesses, holidays may dictate high and low seasons. For others, their flow of customers might depend on the goings-on of another industry. But no matter what dictates your company’s seasonality, it’s important to anticipate your slow season and plan for it.
Yes, that means thinking about ways to bring in loyal customers and find new ones. But it also means making sure you have the funds in place to cover gaps in revenue. In some cases, that may involve taking out a loan like The Pursuit Wine Bar in Washington, D.C., did.
The Pursuit Wine Bar is a comfortable and relaxing establishment in the nation’s capital that serves an eclectic array of varietals that span the globe, from French sauvignon blancs to Australian semillons to petite sirahs from Napa and beyond. It pairs those wines with sweet and savory dishes on its brunch and dinner menu as well.
Opening a bar like The Pursuit was a dream its owner, Thomas Boisvert, thought would happen later in life.
“Then the opportunity presented itself earlier than expected, so I decided to seize it while I had the chance,” said Boisvert, who had previous careers as a teacher and a lawyer.
It was the right decision. The Washington City Paper has dubbed his wine bar “The Best Wine Bar in D.C.” two years in a row.
But even an award-winning wine bar isn’t excluded from the peaks and valleys of seasonality — no business is.
While Boisvert wasn’t looking for financing, a loan offer through Square Capital eased his mind as The Pursuit approached a slow season.
“We had just been reviewing our financial projections and we knew that we were coming into a slow season for the bar,” said Thomas Boisvert. “The loan through Square Capital was a good option to provide us with a cash flow buffer, which relieved a lot of stress in the moment.”
The Pursuit used Upserve — a partner of Square Capital — as its restaurant management platform. While pulling data through Upserve’s dashboard, Boisvert saw a notification that the bar had received a loan offer through Square Capital, a subsidiary of Square.
The Pursuit did not need to submit financial or tax documents or fill out any lengthy forms to request a loan, which in a traditional loan application process may take several hours, if not days, to complete. Square Capital was already able to determine that the bar was a good candidate for a business loan based on its historical daily sales processing activity with Upserve.
Without any complicated request, The Pursuit was eligible for loan offers through Square Capital, and it took Boisvert just a few clicks to complete the application and accept the loan. Within days, the funds were transferred directly into The Pursuit’s bank account.
And The Pursuit’s loan repayments are based off a fixed percentage of the bar’s transactions, providing the bar with the flexibility to pay more of its loan back when business is good and less when business is slower.
“I don’t have to worry about being able to make my loan payments because it’s based off my sales,” Boisvert commented. He added, “For a business looking for short-term cash flow financing or to make an investment without depleting its cash reserves, this is a great product.”
Square Capital, LLC is a wholly owned subsidiary of Square, Inc., d/b/a Square Capital of California, LLC in FL, GA, MT, and NY.All loans are issued by Celtic Bank, a Utah-Chartered Industrial Bank. Member FDIC, located in Salt Lake City,UT. Loans are not issued to borrowers in ND. The individual authorized to act on behalf of the business must be a U.S. citizen or permanent resident and at least 18 years old. Valid U.S. bank account and Social Security number or Individual Taxpayer Identification Number are required. Actual fee depends upon payment card processing history and loan amount. A minimum payment of 1/18th of the initial loan balance is required every 60 days and full loan repayment is required within 18 months. All loans are subject to credit approval.