{"id":421,"date":"2022-12-05T05:51:21","date_gmt":"2022-12-05T05:51:21","guid":{"rendered":"https:\/\/www.businesscapitalusa.com\/blog\/?p=421"},"modified":"2022-12-21T11:10:21","modified_gmt":"2022-12-21T11:10:21","slug":"holiday-season-is-here-why-you-need-short-term-funding","status":"publish","type":"post","link":"https:\/\/www.businesscapitalusa.com\/blog\/holiday-season-is-here-why-you-need-short-term-funding\/","title":{"rendered":"Holiday Season is Here \u2013 Why You Need Short-Term Funding"},"content":{"rendered":"

\"Holiday<\/a><\/p>\n

The holiday season is here!! Starting from <\/span>‘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.<\/span><\/p>\n

Make the Most of Black Friday, Christmas, and New Year<\/strong><\/h2>\n

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.<\/span><\/p>\n

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.<\/span><\/p>\n

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: \u2013<\/span><\/p>\n

    \n
  1. Less liquidity due to lack of sales.<\/span><\/li>\n
  2. Increase in cost of new stocks.<\/span><\/li>\n
  3. Increase in the shipping cost.<\/span><\/li>\n
  4. Inability to book orders in advance.<\/span><\/li>\n<\/ol>\n

    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.<\/span><\/p>\n

    Get that Much-Needed Funding for Your Small Business<\/strong><\/h3>\n

    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: \u2013<\/span><\/p>\n

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

      Features of Short-Term Finance<\/strong><\/h3>\n
        \n
      1. Use<\/span><\/i> \u2013 when you suffer from cash flow issues, emergencies like equipment breakdown, or immediate hiring needs.<\/span><\/li>\n
      2. Rates and Affordability<\/span><\/i> \u2013 short term loans have high-interest rates in some cases; with a shorter repayment period, you can cut interest to be paid.<\/span><\/li>\n
      3. Eligibility<\/span><\/i>\u2013 you can opt for finances as it is less stringent, although whether to lend you is a lender’s discretion.<\/span><\/li>\n
      4. Time to Funding<\/span><\/i> \u2013 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.<\/span><\/li>\n<\/ol>\n

        Why Do You Need Short-Term Funding<\/strong><\/h3>\n

        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<\/a> 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: \u2013<\/span><\/p>\n