How can small and medium-sized businesses use working capital over the festive season?

As the end of another year approaches, the festive season is right around the corner.

For many small and medium sized businesses the festive season is one of the busiest times of the year, and this can lead to some financial stress if you aren’t prepared, or your SME is having cash flow issues. So during the festive season, how can you use your working capital and use it in the most efficient way possible?

Working capital is the difference between a company’s current assets, and its current liabilities. It is a measure of the company’s short-term financial health and can assist the company in taking measures towards growth and investing, especially through busy periods of the year.

If during the festive season your small and medium sized business needs to invest or grow as a result of a busy period, then there are many ways in which you can use your working capital to your advantage.

Working capital doesn’t only bring short-term stability but it gives your SME free range when looking to move the business forward. Whether you need to purchase stock, invest in new technology or purchase additional assets, be confident in growing your business without reducing your control, by accessing a business loan.


The busiest period of the year is almost here, is your SME ready? Credit: Unsplash

When you get a business loan for your SME to invest and grow, it means you are not delving into your working capital. A business loan can be a good solution to help you continue to run your business and meet all regular cash commitments and provide financial security.

Another option for your SME to ensure your working capital is available and abundant, is through invoice factoring. During the festive period your business might have to deal with delayed payments from a range of customers and vendors, which could result in a lack of working capital.

So,Invoice Factoring, is where financiers purchase the unpaid invoice outright and take responsibility for collecting payment in partnership with the seller or outright, if more appropriate.

Depending on the situation your SME is in, will depend on the finance option that is best for you. So once you have decided which finance path is right, you will need to find a lender that is suitable.

‍As a small or medium sized business it can be difficult to find finance options from traditional large bank lenders, which is why your answer can be found within a non-bank lender such as Grow Finance.

‍Grow Finance is a non-bank lender who provides tailored finance options to small and medium sized businesses. Whether you are after a business loan or invoice factoring, Grow Finance can be sure to help you find the right finance option for you through the festive season.

Finding a finance option isn’t a one size fits all situation, which is why the help of the finance experts at Grow, will help your finance experience be a positive and easy one.

To find out more, talk to the Grow Finance team today, call 1300 001 420, or if you are ready to move forward, then apply now.

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