Have you heard of invoice financing?
The holiday season is upon us. As any small business owner knows, things can get quite hectic as the year winds down. Employees take time off to travel to meet their families and friends for holiday festivities, leaving managers to figure out how to effectively delegate shorthanded teams. After all, just because it’s December doesn’t mean your company is able to slow down. You still need to keep up with customer demands and fulfill orders in a timely manner.
For businesses that aren’t rife with cash, this is often easier said than done. Although some clients go on vacation during the holidays, others are in the office just like you. While they may be a little more flexible, they still expect you to deliver. If you’re in retail, things can get even more erratic as folks scramble to get last-minute gifts for their loved ones.
One of the main reasons small businesses struggle with cash at the end of the year is due to the fact their customers take a little longer than usual to pay their bills. Our research suggests that 64% of small businesses struggle with late payments throughout the course of the year. This number is perhaps even higher in December because the person cutting the check might be out of the office.
Instead of letting weak cash flow resulting from unpaid invoices make things more difficult for your small business during the holiday season, you may find that an invoice financing service like Fundbox is just what you’re looking for.
How Invoice Financing Works
Quite simply, Fundbox advances payments on outstanding invoices. Create an account, connect your accounting software, then choose the invoices you want to advance with the click of a button. Money will be deposited in your account as soon as the next business day, and you then have either 12 or 24 weeks to repay the advance, plus a small fee.
With Fundbox, you can solve your cash flow problems without having to take on any debt. With money in the bank, you’re able to:
Hire seasonal employees to keep up with demand
Instead of expecting your employees to work frantically, you’d be much better off hiring a few extra helping hands on a temporary basis during the busiest time of the year. By doing so, your employees will be less likely to succumb to stress stemming from having too much on their plates—which means they’ll be able to deliver service with a smile.
Recognize your employees with a holiday party
Your employees have worked hard for you all year long. Reward them for their efforts—they deserve it. Invoice financing gives you access to the extra cash you need to throw a proper party. In addition to simply being the right thing to do, recognizing your employees’ hard work should help increase employee engagement.
Market your holiday promotions aggressively
One of the easiest ways to boost sales during the holiday season is by offering discounts and deals. However, not all of your customers may be privy to your holiday sales. Instead of hoping they’ll find out about them on their own, launch a marketing campaign to raise awareness about your promotions. Advance your invoices with Fundbox, and you’ll have the funds you need to cover the associated expenses.
To learn more about how your small business can overcome its cash flow woes this holiday season, check this out.