Retailers rushing for festive finance
London-based financier 365 Business Finance, specialising in merchant cash advances, has had a 61% increase this October* in demand from retailers for fast and flexible finance, as preparations for the Christmas season are starting even earlier this year.
Autumn is normally a busy time for funding applications, but this month this year, compared to October 2020, is proving crucial for retailers as they plan further ahead for the festive season, to try and avoid any anticipated shortages or the impact of any panic buying in a post-pandemic world.
Retailers, including many well-known food retail outlets, are currently having to navigate their way through shortages in staff, HGV drivers transporting goods and, therefore, are facing potential supply issues when it comes to the increased stock levels required to meet the needs of Christmas shoppers.
The 61% uplift in the number of funded deals this October clearly shows how small to medium sized businesses are well-suited to alternative finance, in the form of a merchant cash advance, to be able to react quickly to market conditions and any disruptions in stock. With no APR or fixed terms, merchant cash advances have been growing in popularity among retailers over the last few years, the benefits of such financing helping SMEs to stay buoyant during the recent trading challenges faced.
Managing director at 365 Business Finance, Andrew Raphaely, said, “Many individuals and businesses are gearing up earlier for Christmas this year, as a number of us were unable to have the usual bigger Christmas celebrations with family in 2020, due to Covid-19 restrictions.
“With that in mind, consumers are planning purchases further in advance, meaning retailers need to also – when it comes to stock and additional seasonal equipment – especially as potential shortages could indeed create some panic buying behaviour from shoppers when stocking up on gifts and food.”