Seasonal Payment
What does it mean
Seasonal Payments refers to the practice of customizing a borrower’s payment schedule to match its operating season. An example would be a construction company in a northern climate. In a northern climate, a construction company doesn’t fully operate during the winter, and as a result, it has little to no revenue during that time. If seasonal payments were in place, the borrower’s loan payments would also only occur during the spring, summer and fall, and no payments would be required during the winter.
Why does it matter
Seasonal payments is one way to show a customer that you understand their business. You recognize when they are generating revenue, and you recognize it is easier for them to make the payment when they have money going through their account, and ultimately as a banker, your goal is to get the loan repaid; so isn’t this in your best interest too?
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A bit about me
Greetings! I'm Clay Sharkey, and there is nothing I like more than assisting others in achieving their goals. I firmly believe that by enhancing a banker's understanding of their customer's' business, they can provide superior service. This superior service, in turn, leads to stronger relationships for the bank, improved performance for the businesses, and better experiences for our communities. Win-win-win.
