Overview
Seasonality is normal in the car wash business. Financing becomes easier when borrowers show that seasonal swings are understood, managed, and supported by reserves and clear reporting.
Why lenders care about seasonality
Seasonality changes revenue and sometimes costs. Lenders want confidence the wash can pay debt service during slower periods, not just during peak months.
How lenders analyze seasonal trends
Underwriters often review month-by-month performance and compare year over year periods. They look for stability, not just one strong season.
Reserve planning and liquidity
Seasonality increases the value of reserves. Lenders are more comfortable when the borrower keeps an operating cushion for repairs and slower months.
How seasonality can change loan sizing
If cash flow is uneven, lenders may size proceeds off a conservative average or require lower leverage so payments remain comfortable.
How to present seasonality in a lender package
Provide a simple monthly table, explain any abnormal weather events, and show how operations are managed across the cycle.
Bottom line
Seasonality affects loan sizing and reserve expectations. Clear monthly trends and conservative underwriting assumptions keep financing durable across the cycle.