Best Practices for Your Seasonal Business
A Game Plan for Severe Cash Flow Problems Because of Seasonality
Does your business make most of its money during the winter or summer months? Or does your business rely on Holiday seasons? If you struggle to manage your seasonal cash flow and pay your bills, Bankers Factoring has solutions for you to identify and manage your seasonal business cash flow crunch.
Our previous article covered The 12 Most Common Business Cash Flow Problems and Solutions; this is an excellent source for general cash flow issues and solutions. In this article, seasonal business owners will learn what can be done to sustain cash flow all year round. Peak season, slow season, whatever your time of the year when stress overwhelms small business owners, Bankers Factoring wants to help you avoid a cash catastrophe.
Why do Seasonal Businesses have Cash Flow Crunches?
Seasonality causes gaps between sales, accounts receivables, and accounts payables. Simply put, since your sales are not consistent, the timing of your bills becoming due or paying your employees happens before your customers have paid you.
For example, if your business is a wholesaler or importer of consumer goods, you will experience the demand to deliver goods before and during the Holiday Seasons. However, once your customer receives their goods, they are ready to begin placing new orders. The issue for your business is waiting for 120-days for your customer to pay you.
Many commercial customers have turned to increasing their payment terms to include 60, 90, and 120-day periods. This is a tool for customers to reduce gaps in their cash cycles. If your business is a small company or an entrepreneur, you cannot afford to float your customers millions of dollars.
If you want more information on cash flow causes, visit our previous article, 6 Causes of Cash Flow Problems.
Solving Season Cash Flow Issues
With Bankers Factoring, obtaining cash flow solutions for your seasonal business is quick and easy. As a business owner, assessing project consumer spending, economic trends, weather patterns, and past sales are helpful ways to plan and understand your annual business patterns.
Bankers Factoring provides the cash your company needs when waiting for payment from customers. Our invoice factoring or accounts receivable (A/R) factoring programs advance your business up to 85% of your A/R’s in cash. To learn more about invoice factoring, visit our article How Invoice Factoring Works.
Accounts Receivable factoring allows your business to meet payroll, cover rent, and pay your bills on time. There is no need to keep maxing out credit cards or merchant cash advances. Our clients have a 99% satisfaction rate with our most reliable financing solutions.
Invoice factoring is just one tool Bankers Factoring offers to our clients. In our wholesale example earlier, our client was waiting to receive payment but needed to order a new product. What does your company do when you have no capital to purchase inventory but strong sales? Bankers Factoring offers PO Financing to open additional working capital facilities to our clients.
With Bankers Factoring, our accounts receivable factoring and PO funding programs speed up your receivable cycles, reducing your cash gaps. If you are ready to speak with our owner-employees, contact us today.
Here are some of the top reasons why our clients partner with us to reduce cash flow constraints:
- Quick approval
- Same-day funding
- Up to $3million factoring line
- We take on the credit risk
- Allows cash flow forecasting
- No hidden fees
- The most competitive rates
Our previous article suggested 6 Tips to Improve Business Cash Flow, an excellent source for additional information.
Factoring as a Cash Management Tool
Factoring is an adequate cash flow management tool and strategy to bridge cash flow gaps for companies in all industries. Our clients can self-sustain, acquire, and fulfill new sales, and improve their business’ ability to operate in a favorable cash position through factoring. Invoice factoring companies, like Bankers, create tailored programs around factoring for our clients. We assist business owners with their working capital needs, help them grow their business, and remove the burden of chasing down payments from your customers.
Here are some of the reasons why our clients rely on our invoice factoring services as a cash management tool:
- Creates predictable cash flow for seasonal business
- Reduces the gap in payables and receivables
- PO financing facilitates large new sales orders
- Same-day funding after approval
- Both a short term & long tem answer
- We offer the most competitive rates in the industry
- Business owners save time and can focus more on strategy, not bookkeeping and collecting checks
If you have a rapidly growing business visit the article Cash Flow Issues Due to Growth. Stop losing new sales because of working capital.
Business owners need to manage their costs throughout the year, which requires robust financial reporting and bookkeeping. By planning, budgeting, and invoice factoring, you will manage your cash flow all year round. Data is critical to effective financial management, decision making, and a profitable business; especially during a seasonal business cash crunch.