Retailers: 4 Ways Business Loans Help Prepare for Seasonal Demand Cycles

Last Updated on December 7, 2017

Whether retailers sell electronics, smoothies, home furnishings or anything else in the multi-billion dollar retail landscape, the fact remains that short-term success and long-term survival is rooted in the ability to manage — and sometimes withstand and endure — seasonal demand cycles. Below, we highlight 4 practical ways that business loans help retailers of all sizes stay ahead of the curve:

Retailers: 4 Ways Business Loans Help Prepare for Seasonal Demand Cycles

4 Best Business Loan Uses for Retail Seasonal Cycle Preparation

  1. Cover Additional Hiring: Competition for temporary workers during peak times — such as the gift buying season or the back-to-school season — can be fierce, and the window to onboard new hires is typically short. Business loans ensure that retailers have the working capital they need to cover recruiting and compensation costs.
  2. Launch Marketing & Advertising Campaigns: Getting and staying on customers’ radar screens isn’t just important during seasonal spikes, but it makes-or-breaks the month, quarter, year — or in some cases, the business itself. For example, florists that get lost in a crowded marketplace during the absolutely critical April-September peak period may be forced to sell off or shut down. Business loans helps retailers launch targeted marketing and advertising campaigns, so that they’re top-of-mind with target customers when it matters most.
  3. Boost Inventory: For most retailers, the only thing more financially devastating than not having enough customers during seasonal spikes, is facing excessive demand — yet not having enough inventory on-hand to convert demand into profit. Not only does this leave an enormous amount of sales on the table, but many customers who can’t easily and quickly complete their purchase are unlikely to return in the future. Business loans — such as inventory financing — ensure that retailers have sufficient stock to meet demand, and exploit all profit potential.
  4. Add Product/Service Lines: Additional business lines mitigate risk by offsetting low-season demand dips. For example, home furnishing companies that typically experience a post-holiday lull (due to an unfortunate combination of consumer debt and bad weather), can use business loans to sell new/used office furniture — which is often in higher demand between January and April, as businesses need to spend budget before the end of their fiscal year.

Learn More About Retail Business Loans

At National Business Capital, we proudly partner with retailers across the country and provide a full range of business funding solutions, such as: working capital loans, inventory financing, equipment financing, commercial mortgages, business lines of credit, merchant cash advances, and more.
Due to our experience, we know that using business lending to take advantage of opportunities, like the ones above, can help long-term business growth when done properly. If you’re looking to learn more, download our FREE eBook “7 Profitable Opportunities That You Could Miss Without More Business Funding” today:

National Business Capital & Services is the #1 FinTech marketplace offering small business loans and services. Harnessing the power of smart technology and even smarter people, we’ve streamlined the approval process to secure over $1 billion in financing for small business owners to date.

Our expert Business Financing Advisors work within our 75+ Lender Marketplace in real time to give you easy access to the best low-interest SBA loans, short and long-term loans and business lines of credit, as well as a full suite of revenue-driving business services.

We strengthen local communities one small business loan at a time. For every deal we fund, we donate 10 meals to Feeding America!


About the Author, Megan Capobianco

Megan is passionate about helping business owners along their journey - providing them with relevant content they can use in their day-to-day operations.

Disclaimer: The information and insights in this article are provided for informational purposes only, and do not constitute financial, legal, tax, business or personal advise from National Business Capital & Services and the author. Do no rely on this information as advice and please consult with your financial advisor, accountant and/or attorney before making any decisions. If you rely solely in this information it is at your own risk. The information is true and accurate to the best of our knowledge, but there maybe errors, omissions, or mistakes.