The festive season may be a gift for your business. More revenue or footfall could be on the horizon, especially in retail and hospitality. However, you may also face a few problems with this extra potential – most of them stemming from cash flow issues.
Are staff taking time off? Can you meet supply or sales demands, as well as chase any additional invoices?
We want you to master your Christmas cash flow before it ever becomes a problem. Here’s our advice…
Negotiate early payment dates
If you know you’ll be chasing payments in December and early January, ask for an earlier deadline. You don’t want to wait to settle any debts after the New Year. Touch base with your existing or future customers, and request that end-of-the-month payments are made two or three weeks in advance.
Equally though, you’ll have to account for the same requests from your suppliers or employed services. Assume they’ll need early payments too. Then scope out your cash flow so there’s money to spare before the Christmas break. If you don’t have enough, then consider an alternative finance loan to plug the gap.
Expand the team temporarily
You may find yourself desperate for more workers. An alternative finance loan can account for tens of thousands of pounds – enough for a seasonal staff increase, which can often more than make the loan back through higher revenue.
Define the hours that everyone needs to work. See who may be missing due to additional holidays. Line up the shift patterns, with room for full-time or part-time hires. Then tot up the cost and make your loan request. As specialist brokers, Johnson Reed can sign it off in just a few hours.
Fund assets for the seasonal push
Do you have enough equipment, tools or raw materials to meet demand? There’s no point hiring more staff if they don’t have the goods to deliver. A restaurant, for instance, may need additional ovens for Christmas meals. Bars could be lacking seasonal favourites for cocktails and snacks. Hotels might be due a makeover in time for large dinners or events. There’s no telling what you may have in mind if Christmas tends to be your busiest period.
One thing is for certain though – you must have the right physical assets at play. Again, we can help, as our lending partners recognise your potential. We’ve led hundreds of clients to a lease with favourable rates. At the end of the agreement period, you can own the asset, return it, or renew.
Call or message our team for more details on alternative finance. Start the conversation now, and you can get the jump on those classic Christmas pitfalls.