Making the Most of the Christmas Rush by Boosting Cash Flow

Food Entrepreneur Show blog post 1

People love to complain about how Christmas is seemingly getting earlier with every passing year. Retailers launching early seasonal promotions and stocking shelves with Christmas goods months in advance of the big day are common targets for those complaints. The criticism will not, however, roll back the so-called ‘Christmas creep’. 

That’s because the bulk of industries such as retailers, restaurateurs, services and hospitality are actually responding to the behaviour of their customers and doing so very efficiently. This is borne out by a study from the National Retail Federation (NRF); the world’s largest retail trade association. They found that in the US in 2017, some 40% of shoppers began their Christmas spending in October. Around 17% only started come December, and the rest began somewhere in between.

These industries, therefore, have almost a whole three months in which to take advantage of what is generally described as the Christmas rush. This is undoubtedly good news but does also present some significant challenges.

The Christmas Rush – Opportunities & Challenges for Small Businesses

According to the Office for National Statistics (ONS), in the three months from October to December 2017 the UK saw a 0.4% growth in the volume of sales from the previous quarter. That equated to a fully 1.2% rise in the monetary value of sales. This clearly demonstrates that the so-called ‘Christmas rush’ is by no means insignificant for businesses. It’s just good business sense, then, for small businesses to try to make the most of that time of year.

Unfortunately, that can be easier said than done for many small firms. In order to cater for higher sales in the lead up to Christmas, businesses need the additional stock to fulfil those sales. Stock often doesn’t come cheap and small businesses rarely have much cash on hand. This laced with proper marketing expenses, increasing resource to cater for demand, general cash flow to ensure smooth operating periods, store renovations and possible expansions can lead many smaller companies to miss the chance for increased profits which Christmas can deliver. That needn’t be the case, however, as there are ways for firms to seek a speedy injection of cash ahead of the holiday season. 

Boost Small business loans and merchant cash advances have two innovative and useful sources of funding which deliver fast & flexible financing to business ensuring you have the necessary credit lines to capitalise on these extended festive upswings ahead of the Christmas rush. 

Comparing Merchant Cash Advances & Business Loans

Merchant Cash Advances

• Finance is paid back as an agreed upon percentage of customers’ credit and debit card transactions putting you in business funding from £3 000 to £500 000 in just a few days

• Repayments automatically re-adjust with turnover, so as to ensure that you are not caught short during the slower months of the New Year. 

• No fixed repayment terms, as the length of time taken to pay them off depends upon how much a business takes in card payments. This allows for further synergy between your businesses turnover and credit lines

• Ideal for small businesses which experience seasonal fluctuations in income or which have otherwise erratic turnover.     

Business Loans

• Finance is paid back as predictable, fixed term (usually monthly) repayments agreed upon before the loan is granted.

• Repayment amounts remain the same regardless of how well or otherwise a business is doing.

• Have a fixed maturity date on which the loan is due to be repaid in full, which helps firms to budget for the future.

• Ideal for companies with a more reliable and regular income, for which the interest rate attached to their financing is arguably the most important consideration. 

If you want to see your business grow, and capitalise on business opportunities. Boost Capital can provide your business with the funding it needs to thrive and succeed. If you’re looking to invest in your business and take it to the next level, we can provide you with an instant, no obligation quote for our flexible business loans.