For many businesses, the winter months and the holiday season are the slowest times of the year. Retail stores find that they can clear significant profits on Black Friday, but other stores may find that customers are hesitant to spend any more money than they have to. Home improvements, big-ticket purchases, and services are often held off until Spring. And that means that some businesses can experience substantially negative cash flow.
Many businesses need a steady influx of cash in order to keep their doors open. Though you may be able to turn quite a profit in Spring, you still need to last until Spring. Payroll, inventory, leasing costs, and general maintenance all have to be completed even when spending is down. And if you run out of cash during the holidays, you may need to scramble for an expensive loan.
Other businesses may find that they do so much business during the holidays that they end up running out of stock or running short on labor. This can be equally challenging to deal with, as it means that there is profit available that is not being captured.
An easy way to ensure steady operations is to prepare for it in advance with a working capital loan. A working capital loan gives you the funding that you need to continue your operations even if it gets slow. As a bonus, because it’s available at low-interest rates, you don’t end up caught in a loop of debt.
How do you know whether you need a working capital loan?
There’s nothing more important to most businesses than their working capital. Without cash flow, many businesses grind to a halt, even if they have equity and a customer base. Start preparing for the winter season now by considering a working capital loan. MY Company Funding can help! Contact us today to find out about the options available to you.