1. Resort to alternative financing
After the summer break, it's time to get going and, let's be honest, it costs a lot!
Summer is always a difficult time for companies: holidays, low sales, closures and the greater danger of non-payments make these months more difficult for most companies (although it is true that some sectors enjoy these dates of greater activity, as is the case of tourism and restaurants).
In this scenario of special uncertainty, the alternative financing It is presented as a possible solution to your liquidity problems.
2. How holidays affect your company
La liquidity It is the amount of assets that you can convert into money quickly.
Moreover, the solvency It is the capacity you have to face said payments.
Both concepts are essential to establish a good financial health.
Any organization, especially SMEs, depends, to a large extent, on these indicators.
In summer, many companies stop payments due to the drop in sales.
This can cause distortions in which they do not carry a good collection planning.
It's actually easy to understand what's going on. It is enough to analyze how the main factors that occur in summer influence:
2.1 Employee vacations
The availability and operability of the workforce is reduced.
Workers have the right to vacation and, for a determined period, stop performing their work.
This may force you to replace your activity, either through your colleagues or by hiring new staff.
The first option applies when the turnover decreases; the second, if it is maintained or grows.
In any case, this involves significant fixed costs.
2.2 Low sales in summer
Except in some sectors that benefit from summer seasonality, economic activity slows down on these dates.
It is usual for the billing to decrease considerably.
Therefore, the income decreases.
2.3 Holiday closures
In some businesses, low summer sales result in losses if the business remains open.
For this reason, many companies choose to completely cease activity during the holiday period.
Although it is true that certain expenses are reduced, others are maintained, such as payroll and fixed costs.
2.4 Increase in defaults
This summer period can also cause your clients not to meet their payment commitments in a timely manner, which can increase your delinquency ratio with the danger that this entails for your business.
As we have seen, continuing the activity and having the necessary financial resources to invest and boost your business can be complicated after the summer.
What can we do about it?
3. How to get business financing after the summer
Anticipating, identifying the problem and adopting the appropriate measures in this regard is essential for the business financing, especially in periods of uncertainty such as summer.
Here, you can consult more information on how to improve the treasury of your company.
Bank loans are a possibility, but alternative financing is more agile to tackle possible liquidity problems.
Do you know what the promissory note discount and factoring or advance invoices?
If your clients pay you with these payment documents and you need the money immediately, at Workcapital we can help you anticipate their collection when you need it.
He too Factoring as a Financial Tool for Managing Seasonal Fluctuations in Trucking or advance bills is an interesting possibility given the low sales in summer.
It consists of selling the collection rights of one or more invoices to an alternative financing entity.
In this way you can have the money when you need it most.
4. Contact us
These are just some of the possibilities for financing unconventional companies.
There are many more that you can take advantage of in a personalized way.
To do this, contact us: en WorkCapital we are specialists in alternative financing methods.
We work side by side with you, we put ourselves in your place and offer you an individualized solution.
You will see how the post-summer period is much more bearable with us!
Call us and we will inform you without obligation!
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Image by lifeforstock on Freepik
