If you’re a small business owner, you may want to think about procuring financing now. Small-to-medium businesses often find themselves looking for last minute funding during the holiday season. And while last minute lending can provide a much needed cash infusion, they can be more expensive than financing that was initially planned and budgeted for.
Many of the loans taken out during the holiday season are taken out last minute because they were unexpected. There are many financial issues that can crop up during the holidays:
Business owners may also find themselves financially strapped during the holiday season, which can make it more difficult for them to lend money to their own business. Together with the factors above, it creates a perfect storm.
Rather than having to apply for last minute financing, business owners should plan ahead. Last minute financing options generally include merchant cash advances and personally guaranteed loans, both of which can be expensive and lead to significant fees over time. By calculating necessary working capital ahead of time, a business owner can procure the best financing option for them well in advance.
Business owners should take a look at their prior year expenses for the holiday season, in addition to anticipating how seasonal business trends may impact their sales and revenue picture. In terms of personal finances, business owners should also be prepared to devote additional working hours during the holiday season and should be aware that they may not be able to rely upon company draws.
The holiday season can be a boom for many businesses, but it may also lead to additional costs. By preparing to take advantage of small business loans during the holiday season, a small to medium-sized business owner will be able to sidestep significant financial complications. At MY Company Funding, we can offer a complete consultation to help you with your company’s financial needs. Contact us today for more information about business financing.