Holiday Season is Here – Why You Need Short-Term Funding

Holiday Season is Here Why You Need Short TermFunding

The holiday season is here!! Starting from ‘Black Friday’ to Thanksgiving holiday in the USA marks the start of the Christmas shopping season. People are always on the lookout for Black Friday shopping deals. It is when they grab the products for themselves, or to gift others. They also dole up their household by taking advantage of huge shopping discounts from businesses.

Make the Most of Black Friday, Christmas, and New Year

The holiday shopping season begins with ‘Black Friday’ and lasts till December, covering both Christmas and New Year. While for customers, it is a great moment to buy; for the sellers like you, it is the best time to rake in maximum cash into your business by offering great deals.

This ensures maximum footfalls into your stores, and your small business can clear out old stocks and fill them up with new inventory or supplies as the Christmas and New Year festive season arrives when people go out shopping even more.

However, it may happen that sometimes you aren’t able to stock up your business with inventory well before the start of the crazy shopping season of Christmas and New Year. It may happen because of the: –

  1. Less liquidity due to lack of sales.
  2. Increase in cost of new stocks.
  3. Increase in the shipping cost.
  4. Inability to book orders in advance.

All this creates a situation where your business is staring at a potential loss during the Christmas and New Year festive season, ostensibly the most profitable time of the year for your small business.

Get that Much-Needed Funding for Your Small Business

Stop breaking your head thinking about how your small business can avert this precarious situation. The only way to do that is you go for short-term funding. This funding from business finance providers will help you get the necessary funds for your businesses to buy the much-needed goods to stock up your stores with inventory before the festive season starts. How much finance you get for your small business depends on the: –

  1. The term length of your financing decides the interest rate or how you repay.
  2. Status of your business leading to the need for funding or why you need it.
  3. Time frame within which you need funding or when you need it.

Features of Short-Term Finance

  1. Use – when you suffer from cash flow issues, emergencies like equipment breakdown, or immediate hiring needs.
  2. Rates and Affordability – short term loans have high-interest rates in some cases; with a shorter repayment period, you can cut interest to be paid.
  3. Eligibility– you can opt for finances as it is less stringent, although whether to lend you is a lender’s discretion.
  4. Time to Funding – once you apply for short-term finances, lenders typically clear payment within minutes if applied online, while some may release funds for you in 1 to 3 business days.

Why Do You Need Short-Term Funding

After going through the above, consider whether your small business needs short-term funding/finance. The truth is, you need to shore up your finances before the holiday season starts to stock up on inventory for your small business, among others. As such, broadly, three distinct reasons can help you favour short-term funding. These are: –

  • Paying Salary to Seasonal Workers

A holiday season that sees a spike in sales for your business usually comes once a year. As such, you need to be very well prepared to handle the rush of shoppers during the holiday season. Besides stocking up on inventory, the best way to prepare for the anticipated rush is to recruit seasonal workers before the holiday starts. Seasonal or part-time workers help handle the rush of customers trooping into your business alongside full-time employees.

As sales take time to turn into profits, the sudden rise in part-time staff numbers, which are usually paid daily or weekly, can affect your business’s cash flow. Don’t worry!! Short-term funding can help you pay off the salaries of your temporary staff during the holiday season.

  • Stock Up on the Necessary Inventory

The holiday season is the most awaited time for a business when it sees a huge spike in sales. So, it is best to plan for the holiday season by stocking up on inventory in advance. This can be expensive if your business didn’t have great sales in previous months, resulting in a strained cash flow. Short-term funding can help you stock up on seasonal inventory and ensure that your business runs well-spent during the holiday season.

  • Make Shoppers Notice You by Marketing Your Business

The best way to reach more customers during the holiday season is to market your business. As such, you need to have a concrete marketing plan in hand before the anticipated rush of the holiday season. As part of your marketing plan, you can print flyers, develop brochures, start a social media campaign, and even promote/sponsor events before the start of the holiday season.

But this additional marketing expenditure, on top of regular inventory and staffing expenses, will put a lot of strain on your business, driving up expenditure. Short-term financing can provide the necessary funding to implement your desired marketing plan without stressing your business cash flow. If you need money to execute your goals for your small business during the holiday season, get in touch with us.

Business Capital USA will help you tide over fund shortages in your small business. Apply for short-term funding here and prepare for the upcoming holiday season rush, hoping it helps set the cash registers ringing as per your plans.