December and January can be difficult months for many UK SME Businesses if your sales tend to decline towards the Christmas break. January too can be a very slow month of trade.
During the Christmas break many UK businesses will close for a week or more which can have a very big impact on a business’s cash flow as companies look to hold onto their cash over the festive period.
The effective use of Invoice Finance can help bridge the cash flow gap not only over the festive period but for any businesses that are suffering at any time of the year. You can choose to offer all your invoices to the lender, or simply select which invoices you would like funding against. Using these cash flow tools along with effective credit control will ensure that these periods are managed without feeling the pinch.
There are a wide range of short-term loan options for businesses to borrow money from 3 months to 5 years and agree a repayment plan which is the most manageable for the business.
For Businesses in the retail sector, you could even take a Business Cash Advance where the lender will advance you an amount equal to one month’s card sales and you repay via an agreed percentage of your future sales.
These are just a few of the options available, why not get in touch with one of our team, to see which finance products can help you to successfully manage your cash flow over the Christmas period and beyond.