I am having a little trouble contacting my typical lenders over the three day weekend, but I was curious about loans for seasonal businesses that won't be producing revenue for a few months. I have a client that wants to purchase a commercial snowplowing company. It's a small but stable operation. 400k guaranteed contracted recurring revenue from October-May, netting about half that in SDE, priced at 150k for the contract/business and 220k in optional equipment (client wants some but not all).

The current owner wants to finish out his season, and then sell the business that will not start producing income until October. I want to get the deal locked down, but my client can't afford to make monthly loan payments from now to October without the income from the business. Client has limited liquid funds.

I have never dealt with a situation like this before. I was thinking conventional loan with some kind of halt on the payments until the business produces revenue, but October is far away....

Anyone have experience with this or know of any loan package for a situation like this?