Seasonal Cash-Flow Reading
A landscape contractor shows seasonally lumpy revenue — high March through October, quiet December through February. A scoring model in Charlotte flags irregularity. A Butler County banker reads the pattern as normal and sizes a $150,000 line of credit to bridge winter expenses. Reliable for 20 consecutive years, no default.
The Federal Reserve community banking research documents this pattern: small community banks originate a disproportionate share of small-business credit relative to asset size because they translate local knowledge into credit decisions.


