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3 Reasons To Take Out A Business Loan During The Holidays

23 October 2019

Jackie Watts

Consumer spending often skyrockets during the holiday period. As people rush out to purchase presents for their friends and family, retailers can see a significant increase in profit. In fact, many retailers generate a large portion of their annual income during the holiday season.

A business loan can help you better position your company to capitalize on holiday sales.

1. Pay Seasonal Employees

Many retailers add seasonal employees to their payroll during the holidays. Seasonal workers allow you to extend your business hours and accommodate any time off that your regular employees may request during the holiday season.

Adding employees to your payroll can be beneficial, but it can also present unique financial challenges. Seasonal employees will need to be paid before all holiday profits are calculated, so a business loan can be a great way to meet your payroll obligations while waiting on holiday income.

2. Decorate Your Store

Competition for consumer dollars is at an all-time high during the holidays. Consumers are looking to purchase presents in a festive and friendly atmosphere, and the visual presentation of your store can influence buying decisions.

A business loan can give you access to the funds you need to invest in holiday decor for your retail space. A professional decorator can be hired to transform your retail space into a holiday wonderland. Using a business loan to invest in new decorations can help you attract new customers during the holiday season.

3. Purchase Extra Inventory

You will need to increase the volume of your inventory if you want to meet the increase in product demand during the holiday season. Since you will be purchasing your extra inventory well in advance of the holidays, a business loan can provide you with the funds needed to complete your purchase.

You won't have to take any money out of your operating budget to stock up in preparation for an increase in holiday sales when you rely on a business loan to finance any additions you need to make to your regular inventory.

Business loans, when used responsibly, can help you better prepare for the coming holidays. Once you have profited from the services paid for with your business loan, the loan can be repaid without penalty.

A business loan can reduce your financial stress and improve your retail space by giving you the funds you need to hire more workers, decorate your store, and stock your shelves in preparation for increased holiday spending. 

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