Many businesses look to the holiday season to put them in the black before the year’s end, especially retail businesses. However, as much as a business looks forward to boosting its revenue, being prepared for holiday success can put a strain on an already tight budget. This is where inventory funding comes in.
Purchasing Holiday Inventory
While there may not be a sure-fire way to eliminate all the stress that comes with gearing up for the holiday season, having enough inventory to meet customer demand tops the list. Stocking up can sometimes stretch your budget to its breaking point, making preparations for the season more stressful.
If a business purchases only the inventory it can comfortably afford, it will probably fail to meet customer demand. On the other hand, if a business depletes most of its working capital on holiday inventory, it could find covering the cost of daily operations or emergencies a struggle.
Insufficient inventory or financial vulnerability – neither will provide holiday season success. Inventory funding can help a business avoid both of these pitfalls. Here are a few other tips to ensure the season gets off to a good start.
The business problem
Although you may think your existing warehouse space will have to suffice, overcrowded stock rooms can lead to misplaced or damaged inventory. It could even increase the possibility of personal injury. All of these can lead to a loss of revenue and put a serious damper on your holiday season.
Our invoice factoring solution
Although you may think your existing warehouse space will have to suffice, overcrowded stock rooms can lead to misplaced or damaged inventory. It could even increase the possibility of personal injury. All of these can lead to a loss of revenue and put a serious damper on your holiday season.
