Six in ten small businesses need extra funding during peak seasonal periods like Christmas

As retailers enter the last stretch of the Christmas trading period, new research from Liberis reveals that 59% of small businesses require additional funds during these peak seasonal periods.

The findings, based on a survey of over 1,700 small businesses across the UK and US who obtained funding within the last two years, show that funding empowers businesses to capitalise on Christmas demand rather than struggle to meet it.

For businesses with access to additional funds, Christmas can mean growth:

• 77% experienced revenue growth post​funding
• 53%+ saw revenue increases of 10-25%
• A further 15%+ experienced growth of 26-50%
• Nearly 10% generated over $100,000/£75,000 in additional revenue
• But without funding, businesses might struggle:
• 47% would have used personal savings to fund their business
• 27% would have survived but struggled
• 21% would have missed opportunities

5% would have had to turn down large orders

For some, lack of funding hits even harder. 36.6% of UK businesses and 25.8% of US businesses said access to funding helped them avoid closure altogether.

Preparing for peak Christmas trading season

When small businesses have access to additional funds ahead of the peak Christmas trading season, they can:

• Ensure shelves are fully stocked to meet Christmas demand
• 67%+ of small UK businesses invest in new stock/inventory (~76% among US businesses)
• Invest in infrastructure to handle increased order volumes
• 21%+ of those surveyed said that invest in new equipment/machinery
• Spend on marketing to increase customer acquisition during the most competitive time of the year
• 17%+ said that they use their funding on Marketing

Rob Fairfield, CEO of Liberis, said: “Christmas should be the best time of year for small businesses. It’s a chance to drive real growth. However, for too many, it doesn’t live up to the hype. Our research shows that 59% need extra funds during peak periods, yet 75.8% had previously been rejected by traditional lenders. Speed is critical. When businesses get funding early, before the seasonal rush begins, Christmas can become a real growth driver helping small businesses even through their lowest seasons next year.”

Download the full report here.