Seasonal Cashflow Gap Bridged for a Garden Centre in Shropshire
£120,000 · 12 months · 8.50% pa. A family-owned garden centre in Shropshire experienced a pronounced seasonal trading pattern - strong cash generation from March to September, but a significant cash shortfall from October to February when payroll.
The Client
Family-owned garden centre in Shropshire
The Challenge
A family-owned garden centre in Shropshire experienced a pronounced seasonal trading pattern - strong cash generation from March to September, but a significant cash shortfall from October to February when payroll, supplier invoices, and heating costs continued while customer spending dropped sharply. The owners had been using a personal overdraft to bridge this gap at considerable personal cost.
Our Solution
Doulton arranged a £120,000 revolving credit facility specifically structured around the garden centre's seasonal cashflow profile. The facility was available to draw from October and designed to be repaid in full by June. Interest was only charged on drawn balances. The facility replaced the personal overdraft entirely.
The Outcome
First winter season with the facility in place, the owners drew £87,000 at peak and repaid in full by May. Personal overdraft closed. The business now plans its winter buying programme with confidence rather than restricting orders due to cashflow anxiety. Key highlights: Seasonal drawdown and repayment profile matched to trading cycle; Interest only on drawn balances - cost-efficient structure; Personal overdraft closed - business and personal finances separated.