Christmas and Business Loans – How to Make the Best

Business and Christmas have had a lot to do with one-another. This is best shown by some of the famous impacts that they’ve had upon one-another, like:

  • The big red suit of the modern Santa Claus figure that was developed by Coca Cola for it’s promotions
  • The 30 million odd Christmas trees that sell each year in the US alone
  • The fact that only 1 out of every 3 Christmas cards sold in the US has a religious message
  • Credit cards see a jump of over 3-times the typical usage on days close to Christmas.

As most businesses see a sharp rise during the season, there are some that see almost no change and some that see a slowdown. In either case, a business loan can be a tool at one’s disposal, that can help sail through Christmas, serving to address financial needs that a business may have.

How Businesses Typically Use Christmas Loans

Christmas loans are typically taken out by businesses that are either positively or negatively impacted by Christmas, and this is no new trend. Loans for Christmas seasons have been offered by lenders for decades, but it’s only now that there is a shift in focus from an unorganized form of lending to an organized one as the demand grows and as various state and federal regulations help make lending safer.

Christmas and Business Loans

Typically, businesses tend to use Christmas loans for purposes like:

  • Stocking up inventories
  • Strategizing and implementing marketing plans
  • Advertising and promotions
  • Renovation and refurbishment
  • Rending added spaces or equipment
  • Hiring temporary staff
  • Distributing gifts
  • Thematic décor
  • Launching new products or services
  • Procure added materials, permissions, etc.
  • Sustain through a period of slow business
  • Manage credit more efficiently
  • Manage working capital needs
  • Manage emergency purchases and other emergency expenses

Businesses of all kinds may be eligible for a Christmas business loan, and in today’s market, there is no need for a fixed purpose of a loan, considering that many alternative lenders allow loans to be used flexibly once approved.

Does Your Business Need a Christmas Loan?

A few factors can help you determine whether or not your business needs a Christmas loan. Here are some signs that can help:

  1. Previous years’ performance: If in the past, there was a performance that indicated the need for added inventories, equipment, etc beyond what your available funds can cover for, there is likely to be a use for a loan to manage the expenses.
  2. Forecasts: If your forecasts indicate a requirement that your cash reserves may not be able to cover, a loan could be useful.
  3. Financial situation: If your business is not in a financial position to smoothly deliver all customers their Christmas expectations, a loan could be the way to go.
  4. Inventory and equipment needs: The most important things to consider while looking forward to a season of change in demand, is the inventory and equipment. Loans are often utilized towards managing expenses on these items.
  5. Potential for marketing: Marketing and related expenses can serve as an invaluable tool when it comes to making the best of a season. Typically, loans invested in marketing at the right time tend to provide the best returns.
  6. Other factors: Many other factors such as manpower needs, working capital needs, cash capital availability requirements etc. can govern whether or not your business needs a loan for Christmas.

Can an Unsecured Loan from an Alternative Lender be the Answer?

At Business Advance Funding, we are an alternative lender and we provide loans that are:

  • Quick to procure
  • Easy to qualify for
  • Easy to apply for
  • Reliable
  • Available to bad credit borrowers
  •  Unsecured i.e. require no collateral

Typically, a traditional business loan would require you to guarantee repayment against a valued asset (collateral). Such loans can be slow at getting approved as determining the value of assets can take time. Furthermore, the chances of approval of traditional loans aren’t always high, while a loan from us comes with a rate of approval of above 90%.

Hence, many businesses choose our unsecured loans for their Christmas needs, considering the benefits that we provide.

Growth in Revenue vs. the Cost of Loans

When understanding loans and their value for a business, one of the key factors that needs to be considered, is the comparison in the potential growth in revenue that’s forecasted to be a result of the loan, versus the cost of the loan itself.

Typically, this is done via the process of business forecasting. Many businesses make two forecasts – say ‘A’ & ‘B’, where ‘A’ is the forecast with the loan and ‘B’ is that without. Let’s say ‘I’ is the cost incurred for the loan. If A-B>I, it is likely that opting for the loan is a good idea. This method typically works for businesses that tend to see a rise during the Christmas season, and doesn’t necessarily bear validity for those that don’t.

Five Great Ways to Utilize the Loaned Money

Loans can be used in an efficient manner, but also in a very inefficient manner. Offering you loans for your business, we also feel it is a part of our responsibility to offer you friendly advice, so if you’re rather new to business loans, here are five great ways in which your business could utilize loaned money this Christmas season:

  1. Purchasing inventory: Christmas brings a rise in demand for purchases for many businesses across many industries. The rise in demand that your business incurs, can be well-met when you’ve stocked up well enough.
  2. Purchasing/hiring equipment: A rise in demand may also mean a rise in the need for equipment. This can mean purchases or hires and loans can cover both, depending upon the source of your loan.
  3. Day-to-day expenses: Working capital loans are a great solution for such needs where day-to-day expenses are to be addressed.
  4. Marketing and promotions: When there’s potential that is to be tapped, nothing can beat the value of effective marketing and promotions and loans are often used towards such expenses.
  5. Hiring staff: Manpower is indeed an invaluable asset and Christmas can be the time one truly realizes this. A loan can help your business with the funds needed to hire added manpower during the season.

Get a Christmas Loan for Your Business

Having thrown light on some interesting facts about Christmas and business and having shared how business loans for Christmas could make a difference to your business, it is time for us to offer you our Christmas business loan. Featuring a simplified application system, easy qualification terms, quick processing system and a transparent offer, each Christmas loan from Business Advance Funding is designed to suit the borrowing business’ needs. The application process starts as soon as you fill and submit our online form. Shortly after, a customer service expert from our team shall connect with you, to assess your eligibility and requirements, and work towards a suitable loan offer for your business. We wish you a Merry Christmas and lots of luck ahead!

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