Buying Stock for a Peak Season–Have you Figured out the Financing?

It’s November, Black Friday is shaping up to be a bigger success than you anticipated and Christmas is around the corner. You’re low on stock and awaiting payments. How can you ensure your most popular items are in stock at short notice? Allow me to introduce you to short-term business loans.

Financing Seasonal Peaks

In an ideal world you would have prepared for a busy period. Meeting with suppliers well in advance to discuss buying increased stock, the perfect position to negotiate a good price. For those that failed to prepare or need stock fast, short-term business loans offer a swift solution. With the right documents in place, an applicant could receive confirmation about their credit application within one working day. Thanks to customer service teams and straight-forward application processes, the usual ‘administration frustration’ is kept to a minimum. You can bolster your inventory at short notice to meet seasonal demand.

Retailers and credit lines

Many business loans work on a credit line basis. After requesting a loan from a lender, an assessment is made on the business, this allows the lender to offer an appropriate sum of money and repayment terms. Once these are agreed, withdrawals can be made from the sum of money (or credit line) as and when a business owner wishes.

Picture the scenario mentioned earlier: Black Friday was a greater success than you anticipated and stock is low, a quick withdrawal from your credit line and the funds are available to bring in stock. Providers such as Spotcap only charge interest on the amount you withdraw rather than your total credit line. The flexible model fits retailers ‘suffering from seasonal success’ perfectly.

Combine with a current loan

Perhaps you need a credit line that fits with longer term financing you already have in place. Spotcap provides financing where you do not have to provide any security. Our ability to offer an unsecured loan, without the need for a personal or director’s guarantee, is based on our experienced underwriters’ high quality risk assessment. This is particularly useful when collateral has already been put to use with another form of funding, such as a long-term bank loan. As a business owner you can apply for additional financing on top of your bank loan. This opens the door to respond to opportunities such as the one described above.

Are you curious about a short-term loan to purchase additional stock?

As a business relationship manager at Spotcap, I’m here to help. If you have any questions about what you have read or would like to find out more, please don’t hesitate to get in touch. You can contact me by email on or call 0203 883 1407.