Business Financing Options For The Holiday
With the arrival of the holiday season, you probably expect your business sales to grow. 
Prepare for increased demand when you choose the right financing option for your business. It meets your unique needs, supports your company's overall financial health and grows revenue.
Know Your Financial Needs
List all the financial needs you will have this holiday season. Perhaps your business will:
-
Hire seasonal help.
-
Increase inventory.
-
Release a new product.
-
Implement a new marketing campaign.
-
Open a temporary retail location.
-
Makeover your website.
-
Offer free shipping.
When you clarify your expected expenses, you have an accurate picture of how much money you really need.
Check Your Business Credit Score
A strong business credit score increases your likelihood of gaining credit. Check your business credit score now at Dun & Bradstreet, Experian, Equifax and FICO. If your score is low, ask vendors and suppliers to report your payments so you can build your creditworthiness.
Open a Business Line of Credit
For seasonal or emergency expenses, open a business line of credit with your financial institution. This tool gives you flexibility since you only access it if you need it. The most economical lines of credit don’t charge monthly fees.
Ask Vendors to Extend Trade Terms
Your vendors and suppliers may be willing to grant you an extra 30, 60 or even 90 days to pay your bill. With this financing option, you can use your cash to cover urgent holiday bills. Take advantage of this option if you have a track record of paying invoices on time.
Utilize Your Business Credit Card
With a business credit card, you can delay payments on the purchases you make during the holiday season. Because you only pay interest on the cards’ balances, track your spending to ensure you can repay the full amount after 30 days and avoid fees.
Finance Your Inventory
Obtain a short-term loan for your business when you finance your inventory. The items you purchase serve as collateral against the loan. Interest rates for this financing option are generally high, and you may owe monthly fees, including a penalty for early repayment.
Carefully Examine Options if you Have Poor Credit
With poor credit, you may be unable to access traditional financing options. You could pursue a cash advance or other non-traditional finance option, but keep in mind that those options usually include high fees and interest rates. Read the fine print as you carefully consider if these financing options are right for your business.
Successfully navigate the holiday season when you weigh your financing options. The right one gives your business capital and maintains your company's financial health now and into the new year.