A Christmas message for all Consumer led Businesses

25 Oct 2016 Category: Cash Flow, Finance, Funding Posted by: Paul

I heard the Grinch groan from here!

Seriously now is the time when any High street Business or Business to Consumer led Company will be planning for their busiest revenue generating time of the year.

To maximise every £ of consumer spend that planning will include such things as:

  • Additional stock
  • Additional temporary staff
  • Light refurbishment or a seasonal makeover of the premises
  • Marketing Campaign to ensure your on their Christmas wish list
  • Printing of seasonal promotions, menus or vouchers etc
  • Hire of additional equipment

All of this takes cash but you know if you spend it you’ll get back at least £2 for every £1 invested.

In the “olden” days when it was cold at Christmas and you had a friendly Bank Manager, a big jolly chap dressed in a sombre suit who understood your Business, you could rely upon an overdraft for that short term seasonal investment.

That overdraft was paid off in the New Year from the cash earned over the festive period.

However it is now rarely cold at Christmas, often dull wet and grey, Bank Managers only exist in a Dickens novel and the chance of “B2C” Consumer led Businesses getting an overdraft is similar to Santa delivering Easter eggs next Spring.

There is actually a lot of choice to address a Businesses short term need for cash to fund growth but worryingly for me, as a Business funding specialist, very few Businesses are aware of those choices.

Consequently many turn to online searches, are dazzled by the glitter and tinsel of well honed marketing machines, and take expensive long term Business loans that may:

  • Take as much time to organise as a child takes thinking about Christmas;
  • Require security, possibly the bricks and mortar of the Chimney Santa will use to enter your home; and
  • Be a hangover that lasts for months post December as the repayments continue into the deep dark Winter when traditionally your Business turnover is at its lowest

So here is my gift to you.

If you were about to commit to a Business Loan, wait. If you thought support for a Consumer led Business like yours was the Ghost of Christmas past, don’t despair.

Collectively called Facilities they are designed to provide short term cash for growth the key features of which are:

  • No fixed Contract term
  • No fixed monthly repayments – “pay as your Business earns”
  • No ongoing management fees
  • No long term Debt
  • Take only the cash you need, when you need it and pay only for as long as you need it
  • Suitable for any type of Business for any purpose

If your Business is Consumer led a Facility will be the gift that keeps on giving throughout the year as you’ll be able to dip in and out of it when you need cash to grow or exploit a seasonal opportunity, e.g.

  • New Year
  • Chinese New Year
  • Vaisakhi
  • Easter
  • Summer Holidays
  • Back to School
  • Halloween
  • Diwali
  • Bandi Chhor Divas

But rather than unwrap the whole gift here in this post you can find out more by contacting me today.

Whatever you decide I wish you and your Business a prosperous Festive quarter and a debt free New Year.


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