The holiday season is often a time of peak sales for many smaller businesses. In some cases, however, this increase in demand for your services can coincide with significant business expenses that may include increased staffing costs, the payout of employee bonuses and added inventory costs. Exploring the available options for small business loans is often a solid step toward evening out your cash flow and ensuring that adequate resources are on hand for unexpected expenses. Working with an alternative lender is often a great option for companies that may have difficulties in acquiring funding through traditional financial institutions. ReProp Financial has working referral relationships with select credit unions and banks in our region. Their credit officers are often happier to refer entrepreneurs to us instead of saying ‘No’ when they can not provide financing in some cases.

The Ebb and Flow of Retail

Nearly every retail business has times of increased or reduced sales. For example, companies that sell lawn equipment are usually busy beginning in early spring and slowing down around the time of the first frost. Department stores and holiday gift shops do much of their business between the first day of November and the last day of December. Your business likely sees several periods of increased sales as well as some lulls over the course of a typical year. Planning for both situations is critical to help you manage your financial situation.

Managing Periods of Low Sales

  For retail businesses with extended periods of low sales and demand for their products and services, it is normal business practice to downsize staffing during these times. This will typically reduce the financial outlay of your company and will allow you to maintain the same level of service for fewer customers. If sales fall far below what you anticipate, however, you may want to consider small business loans that offer short-term solutions for these downturns.

Planning for Peak Sales Periods

If your business typically sees a sharp demand for its products or services during certain times of the year, it is important to prepare effectively to meet that demand with additional staffing and acquisition of necessary inventory. Especially if your periods of peak demand follow a period of much slower sales, making sure you have adequate cash on hand to deal with these requirements can be a challenging proposition. Alternative lending companies can provide you with a range of loan options to weather these issues and allow you to take full advantage of your busy season.

Understanding Alternative Lending

Traditional lending institutions look at a relatively limited number of criteria when determining whether or not to approve a loan. In general, these criteria include the credit history of your business, its ability to repay the loan and the type of collateral available to secure the loan. Alternative lenders use a different set of standards when considering your loan application, which allows them to offer approval to a wider range of small business loans and promote the best results for your business during every season of the year.
At ReProp Financial, we offer direct funding solutions for small businesses that include residential and commercial real estate lending arrangements. We have served clients in California, Washington, Oregon, Idaho, Arizona and other states on the western side of the United States. Call us today at 1-800-444-2948 to discuss your needs or click here to submit a loan application. We are here to serve you.
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