Worried about your holiday finances? Secure a business loan

Guides| 3 min read
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During the holiday season, retailers accelerate their business operations to top speeds, trying to maximize revenue and break sales records. But just like a sports car needs fuel to race, you need to ensure you have sufficient funds to sustain your business during the most profitable time of the year.

So focused on incoming revenue, some retailers fail to keep an eye on their cash flow. This can ultimately lead to depleted financial reserves and fewer day-to-day sales. What follows this is a desperate search for money lenders and panic about missing out on crucial holiday deals. With all of this chaos, it’s tempting for a retailer to choose the fastest source for money, but that can be costly in the long run because of high interest rates.

So, during this holiday season, make sure you keep an eye on your expenses and know where to find good sources of additional funds in case you run dry. In this guide, let’s understand expenses that can tighten your budget and explore loans that are available to retailers during the holiday season.

Holiday expenses to watch out for


You may need to add a few extra sets of hands to manage the higher volume of sales and deliveries. Because of this, you will be paying for more employee salaries.

Advertising and promotion

It makes a lot of sense to run promotional campaigns during this period to attract more attention. However, fix a clear goal and strict budget for your online paid advertising so that you don’t strain your other financial activities.

Annual expenses

Be it insurance premiums or annual maintenance charges, be aware of all the year-end expenses that you need to pay to keep your business going.

Capital resources

Aside from additional employees, you may need to have more space or lease extra equipment to get your job done. Calculate your rent and lease expenses beforehand, and then plan your other holiday season activities.


All these extra expenses can affect your holiday sales strategies, such as giving away free promotional items or offering better discounts than your competitors. If you aren’t able to find a compromise between your expenses and these strategies, then you don’t have sufficient funds to support your holiday plans. Consider checking out a list of available sources to get a loan. Here are some examples of financing options that can help keep your sales activities running smoothly during the holiday season:

Short-term loans

As the name suggests, this type of loan is offered to retailers for a period of one year or less. This is an excellent form of financing if you’re already aware of your expenses and know how much you need to spend and when.

Lines of credit

A line of credit is like a blanket loan where the borrower is granted a credit limit which can be used as and when they need it. The borrower pays interest only for the amount withdrawn by them.

Purchase order financing

If you’re one of those retailers who get advance orders from customers, then this type of financing is probably the best fit during the holiday season. The lender will pay for all the purchases that you need to make from your vendors. This way, you don’t have to worry about your purchase expenses right away, and you can concentrate more on sales and promotions.  

Cash flow financing

A steady flow of cash is necessary to take care of your operational expenses like salaries and administrative costs. In case of a shortage, cash flow financing can take care of that to pay off your daily recurring expenditure. This ensures that all your operational activities run undisturbed.

Business credit card

Very similar to a normal credit card, business credit cards are offered to those retailers who manage most of their payments online. They can use this card to make payments instantly, and they can pay interest on the balance later. This particular form of financing is very convenient and gives a lot of flexibility to retailers.

Since there’s a lot to be done when preparing your business for the holidays, it’s easy to get lost in the pile of work. But we’ve got you covered. Check out our holiday resources, that include an ebook, video, and a few webinars, to help you get everything in order for the upcoming season!

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