Christmas cashflow

By Rhiannon Carpio, business development manager


The Oxford Street lights are on, calendars are filling with events and it won’t be long before excited little ones can track Santa’s progress across the North Pole. Christmas cheer may filling the air, but it’s set against a challenging backdrop for retail and hospitality clients who will be well aware their takings over the festive season, typically the busiest of the year for most, may be affected by the political and economic uncertainty that has shaped 2017.

While retail spending figures show weak growth, there is some good news out there for hospitality operators – research commissioned by the CGA shows that while there may be less people on our high streets, the ones who frequent restaurants, bars and pubs will spend more than they normally would, with the biggest uplift in average spend being seen, unsurprisingly, at Christmas-themed events.

With customers being more amenable to upgrades and three times more likely to try a new or luxury product over the festive season, industry guides encourage retailers to make the most of this season with careful, early planning and customer-centric promotions. These initiatives often come with a funding requirement that is likely to be a smaller amount than the typical loan size advisers are accustomed to dealing with.

At Merchant Money, we see an increase in applications for loan sizes from £6,000 – 20,000 as businesses gear up, ready to make larger stock purchases and buy in alternative products that are likely to sell well around this time of year. The challenge for brokers facilitating unsecured funding at lower values with tight deadlines is not only whether a proposal can be turned around quick enough to meet the client’s objectives, but also if it makes commercial sense for the broker firm to pursue.

In this respect, a business cash advance provides a solid solution. Business cash advances typically pay out within 48 hours of application, have minimal documentation requirements and build all fees into the factor rate. They offer complete flexibility since the client only repays when they trade through their PDQ machines so, while the advanced amount stays the same, the repayment term is variable. This gives the client complete peace of mind that they will not be under pressure to make repayments they can’t afford – it also allows a little breathing space leading into the new year, when trade typically dips in retail and hospitality environments. And, as a broker, working with the right provider should translate into a simple referral process and the ability for your funder to work directly with the client without unnecessarily absorbing your valuable time.

At Merchant Money, we can handle the application from start to finish if that’s how you prefer to work. For once there’s very little for you to do… except maybe tracking Santa. Merry Christmas.