Quick answer
Seasonal stock funding helps New Zealand shops and hospitality businesses buy stock months before the season sells it. It's usually a short unsecured facility sized on turnover — typically $5,000 to $500,000 — drawn before the buying deadline and repaid from the season's takings. Lenders look at last year's sell-through, your supplier terms and the gap between paying for stock and selling it.
Key points
- Stock funding works best when the stock's own sales repay it.
- Christmas retail, ski-season gear and summer tourism stock all follow the same pattern.
- Last season's sell-through is the strongest evidence you can bring.
- Remember the GST bill that follows a big selling season.
Every seasonal business knows the feeling. The order has to go in now — Christmas stock in August, ski gear in March, summer sunglasses and jandals in September — but the customers won’t arrive for months. Until then, the stock sits in a container, a storeroom or on the shop floor, and the money that paid for it sits with the supplier.
That gap is one of the most common, and most sensible, reasons a main-street business borrows.
When does the stock gap open?
| Business | Buy | Sell |
|---|---|---|
| Gift and homewares shop | August–October | November–December |
| Outdoor and ski retailer | February–April | June–September |
| Beach-town café and shop | September–November | December–March |
| Bike shop | July–September | October–February |
| Bookshop | September–October | November–December |
Wellington City Council’s September 2025 retail report found spending peaks at Christmas and declines in January when residents go on holiday — a pattern most New Zealand retailers will recognise.
The cash gap estimator shows where your own gap opens and closes.
What’s the best way to fund seasonal stock?
The cleanest pattern is self-liquidating: the stock you buy with the funding is the stock that repays it. That points to short-term funding, drawn before the order and repaid as the season’s sales come in.
Unsecured working capital — typically $5,000 to $500,000 for trading businesses, sized on turnover and bank statements — suits most seasonal stock needs. It doesn’t need property security and can be arranged around your buying calendar.
A line of credit can suit businesses that buy several times through a season, drawing and repaying as they go.
Property-secured funding — $20,000 to $5,000,000 — is usually only needed for unusually large buys, or when stock funding is part of a bigger project like a move or expansion.
What you want to avoid is funding short-term stock with long-term money, or paying for this season’s stock with next season’s cash.
Planning your buy? Start an enquiry and talk it through. There’s no credit check to ask.
What do lenders want to see?
- Last year’s sell-through. How much of last season’s stock sold, at what margin, and how much was cleared at a discount.
- Bank statements across a full year, so the seasonal pattern is obvious.
- Supplier terms. Deposits, payment on delivery or 30-day terms all change how much you need.
- A realistic order. Bigger isn’t better if it doesn’t sell.
Your POS system is a goldmine here. Our guide to using POS reports for cash planning explains which reports to pull.
Don’t forget the GST that follows
A big season brings a big GST payment. Inland Revenue lets businesses file GST monthly, 2-monthly or — for those with sales under $500,000 — 6-monthly. If you file 2-monthly, the GST on your peak months lands soon after the season ends, just as trade quietens. Build it into your plan. Our page on GST and provisional tax bills has more.
An illustrative example
Illustrative only. An outdoor clothing store in a ski town places its winter order in March, with a deposit due at order and the balance on delivery in May. Sales start in June and peak in July and August.
The owner draws a short facility in March for the deposit and tops it up in May for the balance. As winter sales roll in, the facility is repaid by the end of August. The GST on July and August sales is put aside weekly, so the September payment doesn’t trigger a new gap.
How much stock funding is sensible?
A simple way to size a seasonal stock facility:
- Start with last season’s sell-through. How much of each range sold at full price, at a discount, or not at all?
- Set this season’s order based on what actually sold, adjusted for any changes you expect.
- Map the payments. Deposits, balances on delivery and supplier terms, by week.
- Map the sales. Using last year’s pattern, estimate when the stock turns back into cash.
- Fund the gap between the two lines — not the whole order if your own cash can cover part of it.
The deepest point between payments going out and sales coming in is the size of facility you need. Ideally, the facility is fully repaid by the end of the season, before the next order goes in.
What should I have ready?
- Last season’s sales by month and by range
- This season’s order, supplier terms and payment dates
- Twelve months of business bank statements
- Any existing stock or supplier finance
What if the season disappoints?
Even good buyers get a season wrong. If sales fall short:
- Act early. Mark down slow lines while there’s still demand, rather than holding out.
- Talk to suppliers about returns, swaps or delaying the next order.
- Talk to your lender before a repayment is missed — early conversations go better.
- Learn from it. Note what didn’t sell and why, and adjust next season’s order.
Leftover stock is still worth something. The aim is to turn it back into cash before it’s out of season.
See what you could qualify for
If your next season’s order is due before the customers arrive, start your 60-second enquiry. Asking doesn’t involve a credit check, your enquiry won’t be passed around a list of lenders, and someone who understands seasonal trade will ring you. Please be accurate about the order size, supplier terms and last season’s results — it helps us get the right fit first time.
Frequently asked questions
How early should I arrange stock funding?
Before your supplier deadlines — ideally a month or two ahead. Arranging funding under time pressure narrows your options.
What if the stock doesn't sell?
That's the main risk. Lenders like to see a track record of selling through similar stock. Be realistic in your order and have a plan for leftovers.
Can I use a line of credit for stock?
Some businesses do, drawing as they buy and repaying as they sell. Whether it suits depends on how often you buy and how predictable your sales are.
Do I need property security for stock funding?
Usually not for typical seasonal amounts. Unsecured options sized on turnover are the common route. Larger amounts may suit property-secured funding.