Definition
Seasonal payment
A seasonal payment (seasonal loan) is a loan that is repaid in keeping with a company’s seasonal cash flow.
Businesses in sectors like tourism, agriculture, hospitality and outdoor sports tend to have strongly seasonal business cycles. With seasonal payments, a tourism business will make smaller loan payments during its off-season months and larger payments during its high-season period.
A seasonal repayment schedule can be associated with many types of loans: Fixed-rate, floating-rate, demand and line of credit.