The holiday season is fast approaching, and while summer brings the sun and festivities, it can also bring major cash flow shortages that affect the health of a business.
Increased trading and inventory, staffing issues and chasing late receivables can all cause stressful peaks and troughs in cash flow. So how can business owners stay on top of their cash flow throughout the busiest time of year?
Here are three easy ways business owners can protect cash flow and ensure their business continues to thrive throughout Christmas and into the new year.
Create a detailed plan and forecast
As a small business owner, it’s crucial to have a good understanding of your sales and especially being aware of how seasonality affects your cash flow. Sales forecasting is a great way to do this, as it provides you with a good idea on what to expect in your bank account in the coming months.
All you need are your previous years’ sales figures and our simple forecasting guide will help you with the rest. Entering the holiday season with a good grasp of your upcoming performance can help identify future cash flow gaps before they happen, giving you ample time to find a tailored solution.
Apply for finance
Having a quick and flexible cash flow solution could be invaluable to help your business at the business time of year. At Spotcap, we offer an unsecured line of credit and it takes as little as 10 minutes to complete an application. You could access up to $400K, giving you the ability to keep your cash flow thriving, while offering you peace of mind during what can be an overwhelming time.
Once you have the funds, how will you use it?
As a small business owner, you know how competitive the market can be, so staying ahead of the curve and acting quickly is extremely beneficial.
At this point it’s useful to look back at your original plan and determine if any issues need more urgent attention than others. With an online business loan from Spotcap, approval decisions are made in as little as 24 hours, giving you the edge to quickly execute plans that poor cash flow previously prevented.
Anything from hiring new staff to purchasing new equipment can be done instantly, leaving you to focus on what really matters – your business.
With the holiday season fast approaching, now is the time to ensure you have the system in place to protect your business’ cash flow.
Predicting extra demand this holiday season?
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Originally published November 22 2018 , updated November 22 2018