The holidays are upon us and it’s a busy time for SMEs as we approach year end. With research showing that last year’s average cost of Christmas for these organisations hit upwards of £20,000, it’s easy to see why businesses could find themselves in a pinch.

Supply and demand

During this busy period, many businesses will be focusing on meeting customer demand, especially those offering retail or food products, for example.

All hands on deck

Recruitment and staffing is likely to be high on the list of priorities too, as the festive season calls for more hands on deck to manage increased demand.

All paid up

Very often businesses will be looking to pay staff early, ahead of the Christmas break, or to deliver seasonal bonuses. Meanwhile their cashflow can be hindered by customers also facing the same cashflow pressures.

Rent quarter

With rent quarters due in March for many businesses, planning for the first quarter of the year will also most likely be underway, on top of the Christmas activity.

Amidst the festivities, the holiday season is an expensive time for SMEs. With all of these considerations and 2016 planning on the go, it’s understandable that businesses could experience a funding gap when it comes to cashflow.

Planning how to fund the festive season, and beyond into 2016, is a must. For some businesses this will mean speaking to the bank about credit or longer term loans. There are also complementary options available which offer SMEs non-bank support.

Alternative solutions, like invoice finance, lend themselves well to seasonal peaks, as they offer flexibility for businesses to access working capital speedily, without longstanding commitments. Very often businesses find that they can receive funding in less than 24 hours, freeing up vital reserves which could go some way towards helping the holidays run smoothly.