3 min read
The pre-season stock squeeze
Garden-machinery retail is a bet placed in winter and settled in spring. Manufacturers run pre-season programmes: order early, take delivery over the colder months, and earn better terms or stock allocation. That means a dealer's biggest cash outlay — pallets of mowers, ride-ons, compact tractors and groundcare equipment — happens before a single customer walks in. When the season turns, sales come fast and concentrated; a wet spring or a late one shortens the window and leaves stock sitting.
Behind the showroom sits a workshop that needs its own working capital: spare parts, consumables and the float to service and repair while customers' machines are off the road. Trade and grounds-maintenance customers may also buy on account, adding a receivables gap. The result is a business that is asset-rich and cash-tight at exactly the moment it needs to be ready to sell.
What dealers typically fund
Directors borrow to get the right stock in at the right time and to keep the workshop moving. Common uses include:
- Pre-season stock build — funding manufacturer pre-order programmes before spring sales arrive.
- Parts and workshop float — spares and consumables to service and repair without delay.
- Ex-demo and used fleet — buying in part-exchanges and demo machines to resell at margin.
- Trade-account receivables — bridging grounds-maintenance and landscaping customers who buy on terms.
- Premises and handling kit — forklifts, racking and yard improvements to hold seasonal volume.
What to consider before borrowing
Size the facility to the season, not to optimism. Base your stock build on realistic sell-through, and keep some headroom for a slow or late spring so unsold machines do not turn into expensive stored capital. Match repayment to when stock realistically converts to cash — a defined seasonal gap suits a short facility you can clear by mid-summer.
Mind manufacturer terms and any existing stocking finance so you are not over-committed across lenders. Check the all-in cost, any fees and whether you can settle early if the season is strong. Used deliberately, a short facility lets you carry the range customers expect; used to hold slow stock indefinitely, it just adds cost.
How short-term company finance fits
Credicorp lends to UK limited companies, not to directors personally — so there is no personal guarantee and your home is not on the line. For a garden-machinery dealer, the lending decision rests on the business itself, not your personal balance sheet.
A short-term facility — taken as a lump-sum business loan or a revolving business credit facility you draw on as you need it — is built to be repaid as your income lands, over weeks or months rather than years. You can apply online as a company, with no personal guarantee.
Frequently asked questions
Can a dealer get finance to buy spring stock during the winter pre-season programme?
Yes — funding the pre-season stock build is one of the most common reasons dealers borrow, because the cash goes out months before spring sales come in. A short-term facility can cover the order and be repaid as the season sells through.
Will I have to give a personal guarantee?
Not with Credicorp. The finance is provided to the limited company, not to you personally, so there is no personal guarantee and your personal assets are not pledged as security.
Can the same facility help with workshop parts, not just whole machines?
Yes. Many dealers use working capital for the parts and consumables float behind servicing and repair, which keeps customers' machines moving and protects a steady, year-round revenue stream alongside seasonal sales.
Funding for UK limited companies
Credicorp lends to your company, not to you personally — short-term working capital with no personal guarantee. See what your business could access.