Managing seasonal cash flow dips in retail

• Cash flow challenge: My revenue drops during the off-season, but I still need to pay rent, staff, and suppliers on time.

• Perfect for: Retailers managing stock for Christmas, Black Friday, or other seasonal spikes and needing cash flow support in quieter months.

Novuna helps retailers access funding to bridge seasonal cash flow gaps either, through our award winning in-house service or by comparing the market to find the best fit for your business.

We work with providers who understand the retail cycle, help you apply, and make sure you get the right deal to keep your business running year round.

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Understanding seasonal cash flow dips

Retail sales often spike around holidays, events, and seasonal changes. This creates pressure to buy stock well in advance, meaning cash is tied up long before customers make their purchases. After the rush, income can drop significantly while expenses remain constant.

Practical ways to manage seasonal cash flow

• Practical ways to manage seasonal cash flow: Options like quick business loans or invoice finance can help retailers buy stock ahead of peak periods without draining cash reserves.
• Negotiate better supplier terms: Agreeing to extended payment terms gives more breathing room between purchasing stock and receiving customer payments.
• Plan a clearance strategy for excess stock: Selling surplus stock quickly after peak periods can free up working capital and prevent cash flow strain.
• Offer pre-orders or deposits: Encourage customers to commit early, creating an immediate cash injection.
• Spread promotions throughout the year: Running smaller sales during off-peak months can maintain a baseline of consistent revenue.

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Funding tools for retail cash flow gaps

Retailers often combine short-term funding options with long-term planning. For example, using a revolving credit facility to manage unexpected expenses alongside a merchant cash advance for flexibility during slower months.

How Novuna Business Cash Flow can help

We work with retailers to tailor funding to their seasonal patterns. Whether it's invoice finance, merchant cash advance, or short-term loans, our goal is to ensure your business is well stocked and financially stable all year round.