Have you heard of invoice financing? It’s no secret that the holiday season is the busiest time of the year for many consumer-facing businesses, especially when it comes to maintaining holiday inventory. According to the National Retail Federation, retailers can expect as much as 30% of their annual sales to come during this time of year as holiday retail sales have been steadily growing over the last several years. Similarly, as USA Today points out, restaurant sales have been trending upward during the holiday season too.
In order to capitalize on shopper and diner tendencies to reach deeper into their wallets at the end of the year, retailers and restaurateurs alike naturally need to have enough inventory, supplies, and ingredients on hand to meet customer demand. The last thing a storeowner wants is to run out of a hot item when a ton of other customers want to buy it. Restaurant owners can’t expect to boost revenues if they keep running out of the special that’s been the buzz of the town or don’t have a fully stocked bar.
In other words, maximizing revenue during the holidays requires having more products and supplies on hand—more than what’s carried during the slower months.
The Challenge of Holiday Inventory
Unfortunately, even if they want to, many small business owners simply don’t have the luxury of stocking up on inventory ahead of the holidays. That’s because they need to focus on covering costs associated with holiday parties, paying out end-of-the-year bonuses, and perhaps adding a little seasonal flair to their storefronts and dining rooms—all the while having to stay on top of recurring operating expenses.
Where Invoice Financing Comes In
If you find yourself in a similar situation—without enough cash on hand to splurge on excess inventory—you’re not completely out of luck. Instead of waiting to sell inventory to customers before being able to restock your supplies, you can use an invoice financing service like Fundbox to stockpile more inventory ahead of time. As a result, you will be able to meet customer demand without having to worry about turning anyone away—and thereby missing out on additional holiday revenue. As an added bonus, because you won’t have to spend as much time meticulously planning the volume of inventory you need and can afford each week, you’ll be able to spend more time on customer service and marketing endeavors.
While a hefty receivables account on your financial statements might look nice, you need cash to buy inventory. This is where Fundbox comes into the equation. Fundbox allows you to advance payments on unpaid invoices. Once you create an account and link it to your accounting software, you can pick which outstanding invoices you want to clear with a tap of the finger on any connected device. The money then appears in your account within a day or two, which means you’ll be able to buy the inventory you need to boost your holiday sales quickly. You then have your choice of a 12-week or 24-week repayment term to repay the advance, plus a small fee.
Don’t leave any sales on the table this holiday season! When you use an invoice financing service like Fundbox to keep your inventory levels high, you definitely won’t miss out.
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