December is a busy month for many business owners, as holiday celebrations will drive up demand for services and goods from small and midsize enterprises (SMEs). Many businesses may want to ride the holiday rush, but because of regular operating expenses, they may not have enough cash to pay for things that could improve their operating capacity and service.
Taking out short-term business loans in December may help you finance your holiday operations and give you an edge over the competition. Learn more about short-term loans and why they can help your business get ahead during the festive season!
Why SMEs Should Get Short-Term Business Loans In December
It can be tough to get a loan in time for a holiday boost from a bank or other traditional lenders. Traditional lenders also typically require a lot of documentation, take a longer time to process, and have restrictions on amounts and repayment periods.
In the end, that much-needed loan may come too late for your big holiday business plan – or not be approved and given at all. Here are some reasons why you may consider getting short-term business loans in December instead to help you out over the holidays.
Hire Extra Manpower Or Extend Your Operating Hours
The holidays mean many people are planning parties, buying gifts, or just generally staying out to celebrate with friends. For various SMEs, extending operating hours or being able to serve more customers may help them make the most of the December rush.
If you need extra employees to man your store or rotate more shifts for longer operating hours, you may need extra financing for their pay. Consider applying for short-term business loans in December to cover wages for additional hands or overtime pay.
Boost Your Marketing To Stand Out From The Competition
Because the holidays can be very profitable for SMEs, many business owners may consider increasing their marketing efforts to stand out and get more customers. Social media marketing, printed ads, and main website creation are just some of the marketing measures that you can take to increase your business’ visibility both on and offline. Those extra eyes and clicks just might translate into increased sales over the holidays!
If you want to kickstart a marketing campaign for December but have a ton of operational expenses, you may want to look into short-term business loans in December. Getting this quick form of financing will potentially give you ready funds for your campaign without having to dip into your savings.
Get Extra Equipment Or Upgrade To Improve Holiday Efficiency
The last thing you want to deal with during the holiday rush is a broken piece of key machinery. Is your equipment just not operating at a pace that can keep up with your extra orders? Do you want to improve or increase your output for better product quality and larger quantities? It may be time to purchase new equipment, whether you’re getting more of the same tools or switching to the latest equipment.
Unfortunately, some business owners are reluctant to take this step because they need to keep an eye on other costs, such as regular inventory replacement and maintaining emergency funds. You may want to get short-term business loans instead so you have funds for daily operations without sacrificing the chance to upgrade your equipment.
Increase Your Inventory To Meet Additional Holiday Demand
Some products and services are especially popular over the holidays because of all the celebrations and gift-giving that take place in December. Think catering companies, party planners, and mobile bar services – these are just some of the businesses that usually get an increase in demand over the holidays.
With the higher demand comes a need for increasing your inventory, regularly replenishing it as well and keeping more on hand in case of large orders. However, you may not have enough cash on hand yet to pay for extra inventory. Instead of turning away bulk orders or more customers, consider taking out short-term business loans in December to cover the cost of stocking up.
Manage Holiday Cash Flow Gaps
A typical issue for many SMEs is handling irregular cash flow, no matter how successful you are. There might be times when those invoices still aren’t due or haven’t been paid, but you already need more cash to pay for restocking your inventory or giving overtime pay over the holidays.
Instead of dipping into your savings or restricting your holiday operations, think about a short-term business loan and whether you should get one for better cash flow. This might help you cover those important expenses ASAP and keep your business on track to grow over the holidays.
Get Holiday Financing At More Flexible Terms
Because it’s already December, it can be tricky to get a traditional loan in time to pay for holiday business plans. Borrowing from banks or other traditional lenders usually have the following hurdles:
- Longer application and approval processes
- Stricter lending requirements
- Required loan collateral, such as property or a vehicle
- Fixed repayment periods
- Set loan amounts that can’t be lowered or increased according to your business needs
- Restrictions on what the loan is spent on
If you need quick access to cash for your holiday operations, you may want to apply for a holiday business loan instead. These loans typically give you money in as little as 48 hours from approval of your application, so you can have immediate funds for sudden expenses. They also have more flexible terms for loan amounts and repayment periods, so you can borrow only as much as you need and repay over a period that best suits your budget.
Increased holiday demand can be a major challenge for business owners, but it also presents an opportunity to grow and maybe even make record profits. Consider getting short-term business loans in December to finance plans like special holiday offerings or increased operational capacity to serve more customers. Having enough holiday financing may help you manage your regular cash flow and take your business to the next level!