Fast and flexible finance prepares retailers for a very merry Christmas
- Retailers take out merchant cash advances in November and December ahead of Christmas rush and New Year sales
- Surge in demand expected in January as independent retailers look to manage cashflow
With Christmas just around the corner, 365 Business Finance has revealed a 174% year-on-year increase in merchant cash advances for retailers during the months of November and December.
This trend is a result of many retailers realising the benefits of merchant cash advances, which have proven to be one of the most flexible forms of finance – with repayments taken as a small percentage of debit and credit card sales.
November and December are typically the busiest months for retailers requiring funding, as many types of retail outlets on our British high streets prepare for the Christmas rush and busy New Year sales. A surge in demand for merchant cash advances in January is also expected as independent retailers look to manage their cashflow effectively through all the highs and lows of the winter months.
Managing director of 365 Business Finance, Andrew Raphaely, said: “November and December are always busy months for us, as retailers require funding to purchase stock, hire seasonal staff and manage cashflow.
“This year has seen extraordinary levels of demand for our merchant cash advances – up 174% year-on-year – as independent retailers have been turned away by banks that simply aren’t interested in supporting SMEs. They’re increasingly coming to us to help them grow and support their businesses.
“Once the Christmas rush is over, independent retailers still have a busy time ahead as they must contend with the high street chains and online retailers who discount heavily in the January sales. Getting funding in place to purchase more stock and improve cashflow is crucial, while preparing for a potential downturn in sales towards the end of January and into February as consumers tighten their belts.
“As our name suggests, we’re here for our clients year-round – we provide funding for businesses throughout the Christmas period, which has proven invaluable to those that want to get ahead of the game and have their finances sorted ahead of January.”
365 Business Finance funds UK businesses with merchant cash advances from £5,000 to £200,000. Eligible businesses must have been trading for six months and take at least £5,000 per month in debit and credit card transactions.