Buying in June
for what sells in December
Retail cash flow runs backwards, and most business loans for retail and ecommerce are really funding that reversal. You commit to stock months before anyone buys it, and in a trade where the fourth quarter can be most of the year, the biggest cheque you write lands when the account is at its emptiest.
No credit check to enquire.
Four things that squeeze a retailer
- Stock bought on a long lead time
Importers want paying at or near order, and the container arrives months before the till rings. This is the single most common reason a profitable shop runs out of money.
- Your takings fund the borrowing
If most of your sales go through a card machine, revenue-based funding reads those settlements directly, which suits a business whose takings are strong and whose filed accounts are a year out of date. Repayment falls with trade, so January costs less than December.
- Marketplaces hold your money
Selling through a marketplace means your money arrives on their payout cycle rather than when the customer pays, and new or fast-growing accounts are often held longest. You are effectively extending credit to a platform.
- Invoice finance only if you wholesale
There is no ledger to lend against when the public pays at the till or at checkout. If you also supply other businesses, that part of the book is fundable and the retail part is not.
Questions from this sector
When should I arrange funding for Christmas?
Before you place the order, not when the invoice is due. Summer is not too early. A facility agreed in advance costs nothing until you draw on it, and arranging one in November means competing for attention with every other retailer doing the same thing.
Can I get funding with no premises?
Yes. Online-only is normal and lenders read your settlement and platform data rather than a lease. Being a limited company matters more than having a shop.
Does a bad quarter rule me out?
Not on its own, particularly in a trade everyone knows is seasonal. What matters more is whether the account behaved during it, so returned direct debits in a quiet month do more damage than low takings do.
Can I fund a shop fit or an EPOS system?
That is asset finance rather than cash flow, through CW Asset Finance, and it is usually cheaper than paying for it out of working capital.
Fund the stock before the season
About a minute, no credit check, and the cost in pounds before you decide.
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