Business Financing for the Holidays

Right before the holidays businesses are stocking their shelves in preparation for the busiest time of the year. Many businesses do the majority of their sales during the holidays so they have to purchase extra inventory to accommodate. Merchants should take advantage of some of the options and deals that become available during this time of the year.

Early Bulk Purchase Price Breaks

Merchants should take full advantage of buying inventory before everyone else is. Take advantage of price breaks that vendors are giving before the holiday season. Vendors don’t have to give price breaks during the buying season because businesses purchase in higher quantities anyway. These same vendors are slower before the holiday season hits so merchants should negotiate bulk order deals and fill their inventory shelves early. Merchants can do this by taking a short term business loan to help with financing the bulk orders.

Short Term Financing

In order to take advantage of the early bulk price breaks you may need some extra financing. Since the holiday season is only a few months long it’s best to take advantage of some of the shorter term business loan options available at lenders like Advance Smart. Shorter term business loans have lower interest rates. Plus the period in which you are paying the loan back is your busy season so the payments won’t have as big an impact on the business’s cash flow.

Business Loan Lenders

Many business loan lenders set a large bulk of their money aside specifically for the holiday season. That means that they have to get that money out which means merchants have a much better chance at getting funded. They also have a good chance at negotiating better interest rates which is money in your pocket. Lenders love shorter term programs because they have a better chance at getting paid back and after all cost is weighed on risk.

Other People’s Money for the Holidays

You have enough gifts to buy so if you have the chance to use other people’s money and keep or invest your own then you should take advantage of that. You can get an unsecured short term holiday loan from Advance Smart for 3 months at 8% with no collateral. The average profit margin of a small business is 48%. So it’s well worth making 40% after interest and investing your own money into growing your business. Cash flow is the number problem with many businesses being able to grow. This will take care of that problem.

Take Advantage

Call your vendors and see what kind of price breaks they will give you if you order in bulk before the holidays come. Get your quotes for the remodeling you want to get done before your business is packed with customers. Get your holiday marketing taken care of so you have the proper seeds planted. There are so many options with great interest rates as well as special holiday packages available to businesses it would be a bad business move not to at least talk to a funding advisor to see what exactly is available to you.