It’s
almost never too early to plan for your holiday business aspirations
and lay out your marketing budget for the three months leading to the
big day. Think about that for just a minute because all your goals
will be interdependent on your cash flow in terms of put those
designs into effect.
If
you find that you ran out of budget before you ran out strategies and
your best hope for a healthy profit margin is the employment of all
your well-crafted plans, your answer may be a business
term loan.
At
this point in the season, you probably will do better in getting a
merchant cash advance loan than in submitting an application to your
local community bank or credit union, owing primarily to the fact
that it may take a while to hear from the bank.
Most
business term loans from a merchant cash advance service are
completed within 48 hours of application. Yes, the interest rate will
be higher but sacrificing inventory or marketing that can ultimately
turn your business around next year may be worth it.
Wesley Yuhn of Tampa &
achdp.com
explains that,
“Alternative lenders that offer business term loans provide cash
for quick turnaround needs.” However, it should go without saying
that applying before the last dime in your budget is tagged is much
better than waiting until the last minute.
Before
You Apply for a Business Term Loan…
Before
you place an order for inventory, you must check to see what you need
and make a list to ensure that you order everything that you need.
The
same discipline is advised before applying for any business loan---
whether through a traditional facility or an alternative service.
- Decide what you need the money for. Inventory, seasonal sales variances and additional marketing budget are typical reasons for a short-term loan. Each is a temporary expansion that is designed to have a higher ROI than say paying off past bills in order to get more credit from vendors.
- Examine carefully how much you really need. Most small businesses ask for less money than they need and this can really backfire when paying off the loan. Asking for too large an amount, however, raises red flags and makes lenders wonder if you have the ability to control your spending.
- Send emails to your current customer and vendor base and let them know that you are preparing for the upcoming holiday season and are looking for fresh ideas to expand your business offerings. You must also provide a link to all your social sites and encourage them to post their comments and advice there. Then, be sure that you check your sites at least twice daily – morning and evening – and respond to all posts immediately.
Once
you have all your information updated and know what you really need,
it’s time to deck your holiday business up with a short term
funding.
