It’s that time of year again when many businesses will find themselves up to their knees in orders ahead of the Christmas period. Though this may sound promising in theory, the reality can be a struggle for many businesses, with demand fluctuating throughout the winter months. A surge of cashflow in one month followed by quieter months can be challenging and, for that reason, many businesses use Invoice Finance to manage the shifting changes in seasonal demand.
A number of problems can arise as a result of changing demand, which can often lead to:
- Not enough supplies or staff to cover busy periods
- Lack of working capital available to buy in materials for orders
- Limited cashflow to cover any additional staff employed to assist with busy periods
No business wants to say no to new orders due to lack of resources and if their cashflow isn’t healthy, many may find themselves in that position.
There are a number of things businesses can do to give themselves a head start:
- Understand their customers – the first step to understanding fluctuating demands is to understand customer buying behaviour. What was their purchasing behaviour in the previous year? Can this be transferred to this year?
- Don’t react to the market – one helpful way to manage cashflow is to forecast trends in preparation for any expected changes in demand, particularly over seasonal months.
- Consider having funding in place to manage seasonal changes.
The right funding can ensure that your business is always in season
If you are looking to unlock cash tied up in unpaid invoices but are also worried about meeting the funding requirements due to fluctuations in demand, Invoice Finance may be a great option for your business. Many businesses will experience some form of change in demand for their products or services throughout the year. As touched on above, one example of this is seasonal fluctuation where most businesses will see a surge in demand over the Christmas period and may find this difficult to manage. As with seasonal changes, the effects of the COVID-19 pandemic have also meant that many businesses are now seeing fluctuations in demand in periods where they may not have previously expected. Invoice Finance is a great solution for businesses who experience these fluctuations as your facility grows with your business. With our flexible solutions, your facility can increase as your sales increase and vice versa. This means that you can begin to manage expected changes in demand and amend your facility as you do so.
How we can help?
At Skipton Business Finance, we offer a range of flexible solutions, including Invoice Factoring and Invoice Discounting, which can help businesses gain access to money tied up in unpaid invoices. Imagine the benefits of not having to wait 30, 60 or even 90 days for your customers to pay you for your hard work. Our solutions are flexible to meet your needs and can grow as your business and sales ledger grows so that you are always able to manage your demand.
Find out more about our Invoice Finance products below:
- Invoice Factoring
- Invoice Discounting
- My White Label
- Disclosed Invoice Factoring
- Recourse Invoice Factoring
- CHOCS Invoice Factoring
- Skipton Select - Interest-Free Invoice Factoring
- Confidential Invoice Discounting
- Disclosed Invoice Discounting
- Recourse Invoice Discounting
- Invoice Discounting for Small Businesses