As you prepare for Christmas, you may notice that your bank account is a little less flush than it usually is. The cost of the festive season quickly mounts up. The same can be said for businesses too. The festive season is often very lucrative for businesses thanks to the Black Friday sales, the increased spending and higher demand.
However, to get to a position where you are able to produce and sell more, you need to spend more. Before the flush festive season, businesses need to prepare for the increased expenditure. This could be higher staffing costs, purchasing additional stock or materials as well as marketing and advertising costs. This time of year is also expensive with higher utility bills and potentially Christmas bonus payments too.
All of these additional expenses can leave your business in a very precarious position before the busy festive season commences. This is especially true if long payment terms mean you won’t see the fruits of your labour until January, or even later.
So, how can you prepare for a successful festive season without fearing a Christmas collapse?
Managing your Christmas cashflow
During a busy gear-up for winter, you may not have time to keep a close eye on your cashflow. Furthermore, your sales ledger may be filling up, but with business shutdowns and days off, processing and paying your invoices may take longer than usual. So, how can you make sure you maintain a healthy cashflow while waiting for those long overdue invoices to come through?
The answer is with Flexible Invoice Discounting.
What is Flexible Invoice Discounting?
Flexible Invoice Discounting is an alternative finance solution that helps you to release funds against your sales ledger to maintain a buoyant cashflow. Simply select your debtors that you wish to add to the scheme and upload their invoices to the system. Then, when the invoices are uploaded, the lender such as GapCap will release funding, enabling you to draw down the money you need from your available balance.
This facility is fast and flexible and is ideal for the seasonal demands that many businesses experience. With a full sales ledger, you know exactly what money you have available, GapCap’s flexible invoice discounting means you can use that money as and when you need to rather than waiting for lengthy repayment terms.
So, if you’re looking to improve Christmas cashflow and can’t wait until the January payments come rolling in from your clients, Flexible Invoice Discounting is a fantastic alternative finance solution that maintains a healthy business flow.
Find out more about Flexible Invoice Discounting here.