For seasonal businesses access to working capital to pay suppliers is essential. Abcor’s funding supports seasonal businesses by matching their finance requirement to the trade cycle. Loans can often appear appropriate however it risks leaving businesses with costly excess cash. Excess cash can lead to deployment of funds to areas not initially intended. This may not be in the best interest of the business. With Abcor’s offering businesses can dip in an out when the business has a demand without any penalty. Why not contact us to find out more.
For many businesses the long march to Christmas has started. From design, marketing, potential sales, product development and sourcing; a lot is underway. For many seasonal businesses deposits have or in the process of being paid. Terms have been discussed with the supplier and the pinch point is about to arrive, how to finance those goods.
Cash-flow is the ideal way to finance purchases. However, as it’s the low time in sales cash is often tied up covering administrative costs and deposits. The other option is external financing. This this can take many forms from loans to Purchase Order/Trade Finance. Customary the first port of call was the bank. However, unless the client has a long-established relationship with the bank this may not been an option. Unless the facility is already in place, businesses have probably missed the boat for this year. Businesses tend to under estimate how long it takes for banks to put in place a new facility.
The more realistic option for funding this season is to seek private debt providers. As the pinch point is for a 6-to-7-month window the most appropriate might be PO/Trade Finance to help fund those orders. The cycle can be extended by using Invoice Discounting or Factoring. Ultimately, once the sales are pulled through the business has the comfort that it doesn’t have any debt overhang. For more information contact andy.beck@abcorfinance.com / +447932161202 or colm.oreilly@abcorfinance.com +353877672663