Quick answer
Rural and seasonal businesses in New Zealand, from orchards and vineyards to agricultural contractors and tourism operators, often earn most of their income in a few months and spend all year. Seasonal business loans and revolving credit cover the gaps between harvest, sale or peak season and the costs that come before it. Lenders look at a full year's bank statements, and property, including rural land, can support larger amounts.
Key points
- Income arrives in peaks; costs run all year.
- Lenders review a full 12 months to see the cycle.
- Revolving credit suits recurring seasonal gaps.
- Rural property and equipment can secure larger needs.
- Unsecured
- Typically $5,000 to $500,000 on bank statements
- Property-backed
- $20k to $5m, including some rural land
- Speed
- Same-day funding possible for smaller unsecured amounts
- Purpose
- Business purposes only
A kiwifruit orchard spends money on pruning, sprays and labour for most of the year, then gets paid in waves after harvest. An agricultural contractor is flat out in spring and autumn and quiet in winter. A Fiordland tour operator earns most of its income in summer. These businesses are often profitable over a full year, but the cash comes in lumps.
The seasonal funding problem
Seasonal businesses usually face two pinch points:
- Pre-season costs. Labour, inputs, maintenance, stock and marketing before revenue arrives.
- Off-season fixed costs. Rent, loan repayments, permanent staff and insurance during quiet months.
Some also face timing quirks unique to their industry, such as payment schedules from packhouses, wineries or co-operatives that spread income across many months.
Funding options that fit
Revolving credit
For a cycle that repeats every year, a line of credit is often the best fit. Draw it down before the season, repay it as income arrives, and it’s ready again next year. Interest applies only to what’s used.
Short-term seasonal loans
For a one-off need, such as a bigger crop, an expanded tour programme or replacing a worn-out piece of kit before the season, a short-term loan repaid from the season’s income works well.
Equipment finance
Tractors, sprayers, harvesters, boats, buses and other seasonal equipment can be financed against the asset. See equipment and vehicle finance.
Property-backed
Larger needs, such as buying an adjoining block or bridging until a sale, can be secured over rural, lifestyle or residential property. Lenders often apply more conservative loan-to-value limits to rural land.
Show the lender the full year
The biggest risk with seasonal businesses is a lender looking at only three months of statements and seeing the quiet season. Help them see the whole cycle:
- Provide twelve months or more of bank statements.
- Point out your peak months and typical revenue in each.
- Share any contracts or supply agreements for the coming season.
- Explain how off-season costs have been covered before.
Tax timing
Seasonal businesses often have lumpy provisional tax and GST. Talk to your accountant about options such as the ratio method for provisional tax or different GST filing frequencies, which can align payments better with income. Planning tax around the season can reduce how much you need to borrow.
An illustrative example
A Marlborough contract vineyard management company employs 22 seasonal staff for pruning and harvest. It’s paid by its winery clients monthly in arrears, with a large reconciliation payment after vintage. Every year between June and September, wages run well ahead of income.
The company sets up a $250,000 revolving facility after a strong vintage, when its statements look their best. Each winter it draws on the facility for wages and machinery maintenance, and repays it from April to June as vintage payments land. One year it also uses equipment finance to replace two tractors, keeping the facility free for wages.
When to apply
The best time to arrange seasonal funding is straight after your peak, when bank statements are strongest, not halfway through the quiet months when the account looks thin. If you’re already in the quiet season, a full year of statements and a clear explanation still go a long way.
Find your route
Use the funding speed finder to see which option can land before your season starts.
Weather, prices and the unexpected
Seasonal businesses carry risks that city businesses don’t: a late frost, a wet harvest, a fall in export prices or a cyclone that closes roads for weeks. Lenders know this, and the most useful thing you can do is show how the business has handled a bad year before. If you came through a poor season, explain what happened and how the business adjusted, whether that was trimming costs, drawing on a buffer or changing the crop or product mix.
Insurance matters here too. Crop, business interruption and equipment cover all reduce the chance that one bad event turns into a loan you can’t repay. Having your insurance schedule ready, along with any contracts for the coming season, gives a lender confidence that a single setback won’t derail repayments. That confidence usually translates into a quicker answer and a more comfortable repayment schedule, because the lender doesn’t need to price in uncertainty that you’ve already managed.
Ask a real person
Asking what’s possible doesn’t touch your credit file, and we don’t send your details to a crowd of lenders. A real person reads your enquiry, takes the season into account and calls you. Start your enquiry.
Frequently asked questions
Will lenders understand a seasonal pattern?
Specialist lenders who see a full year of statements can recognise a seasonal cycle. Explaining it upfront, with last year's peak months, helps a lot.
Can I borrow against rural land?
Some specialist lenders accept rural and lifestyle property, usually at lower loan-to-value ratios than urban residential property.
What about farm machinery?
Tractors, harvesters, sprayers and similar equipment are commonly financed with the machine as security. See our page on equipment and vehicle finance.
Does this cover tourism businesses too?
Yes. Tour operators, accommodation providers and activity businesses with seasonal peaks face the same pattern and can use the same approaches.