August brings thoughts of summer holidays, ice cream, beaches, and sunshine. However if you are in business and work in industries which make the bulk of their revenue from the festive season then August is the month to be making plans to ensure you can deliver your products and services to your customers and suppliers.
Take the time now.
Taking the time now to plan with your team on new product lines, timelines on projects, order stock, recruitment will stand you in good stead as we start to travel towards Christmas.
Knowing your plan and timelines to deliver them will help you understand any funding needs you may have. The pandemic has changed a lot for many businesses. Many suppliers may have extended delivery times due to delays in sourcing materials, others are extending their payment terms – especially the larger blue-chip companies. These changes will have affect on your cash flow. So how will you and your business manage the peaks and troughs of seasonal trading?
Planning your finances
Whilst you may have good intentions, getting yourself organised enough to start enquiring about financial options always ends up being a last-minute panic.
However, it doesn’t need to be that way.
Whether you have a broker/trusted advisor or you already have a relationship with an existing lender you should start your discussions now as to what finances you will need to have in place to see you through the next few months.
There are numerous funding options available to businesses.
You could consider taking out a short-term business loan. A loan could help you spread the cost of stock you require for the seasonal period.
Alternatively a Revolving Credit Facility works similarly to an overdraft facility. It can be used to access cash at any time you need to cover urgent orders, recruitment of new staff or additional marketing to name but a few.
The simplicity of the revolving credit facility means that you only access the cash when you need it and only pay for it for the time you use it for.
Be ahead of the Christmas curve.
Planning is key to having a successful seasonal trading period, ultimately that success will be down to ensuring you have funding in place to help you achieve it. Arranging your finance now will help to reduce your time and stress in the future.
If you wish to find out more about our funding options available to businesses like yours then simply get in touch.