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Managing cashflow through the peaks and troughs of the holiday season

  • Posted by Andrew Kelly
  • On November 13, 2019
  • 0 Comments

Christmas is only weeks away and the retailers are in full swing trying to stimulate spending earlier. 

Our increasingly busy lives mean many of us continue to leave our shopping to the last minute and take advantage of extended trading hours which is custom for the season.

For countless businesses this is a peak trading period in their year. Manufacturers and wholesalers earlier in the supply chain have already been preparing for many months. Like the retailers they are waiting for the big consumer spend that will see cash flow back into the supply chain to recover much of the cost that has been outlaid and hopefully a worthwhile profit.

5 Effective Cashflow tips for BusinessThe peak trading period can only be achieved with peak investment by businesses. Resources are often stretched, purchasing materials, making product, shipping to retailers as early as possible and working extended hours to keep up with the demand.

Also unique to this time of year is the post season slowdown. Everyone has been flat out with work and family commitments and are ready to take some much deserved leave. Some businesses close for a few weeks in late December and early January which can often result in payment delays to business suppliers.

Additionally, this year businesses are facing one of the toughest credit markets in a decade. Lenders are being cautious and taking their time to reach decisions. Often the results can be unexpected and not what businesses were counting on.

Business owners who are uncertain if their Christmas stocking will be filled with cash this year are running out of time to take precautions. If you would like to have some assurance, speak to AddCash and we can put together a solution that will provide you with some certainty this holiday season.

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