While most people look forward to December as a time to connect with family, give gifts and generally enjoy the festive cheer, for some businesses, December can present a number of financial challenges.
As people start to wind down for Christmas, some businesses can often experience a significant dip in their usual level of economic activity. This paired with the current cost-of-living crisis, makes cash flow management crucial.
In this blog post, we’ll delve into the importance of cash flow in December, the impact of the cost of living crisis and how asset finance can be a strategic solution to navigate these challenges.
Navigating December business challenges
Throughout December, some businesses often experience a significant slowdown in operations. Whether it’s due to customers diverting their spending towards holiday expenses or employees taking time off, the reduced activity can have a significant impact on cash flow.
Another factor that may add a layer of stress in December 2023 is the continuation of the cost of living crisis, which will influence the level of spending individuals can manage, further affecting businesses.
How asset finance can be a lifeline for your business in December
One effective solution to navigate the cash flow challenges of December is to explore the benefits of asset finance. Asset finance offers a unique set of advantages that meet your specific business needs during slower months.
Here are the 3 key benefits of utilising asset finance in December:
No large upfront payments
One of the primary benefits of asset finance is that it eliminates the need to make substantial upfront payments. Purchasing assets can place a strain on your cash reserves. In comparison, asset finance allows businesses to access the assets they need to grow without depleting their cash reserves.
Faster financing compared to alternatives
When it comes to your business, time is of the essence, especially during slower months. Asset finance is an ideal solution for gaining finance quickly. Typically traditional loan applications are time-consuming due to the extensive documentation needed and this can cause delays that businesses can’t afford during the holiday season.
Applying for asset finance with Shire Leasing is a streamlined process, which allows for faster finance decisions and access to funding. This means that you can seize any opportunities that may arise, despite the December lull.
Weathering the financial storm
It’s natural to be concerned about how December might affect your business, but don’t worry, while it might be a slow month it’s often followed by an influx of economic activity in the new year.
Not only does asset finance place you in a far better position to weather any of the financial challenges of December, but it also means you can set the stage for a strong start in January, allowing you to invest in essential equipment, technology, or resources you need to grow.
Asset finance solutions from Shire Leasing
If you’re concerned about the challenges you might face in December, why not adopt a strategic approach that offers you the flexibility to acquire assets while reserving crucial cash flow?
At Shire Leasing, we take the time to understand your unique business needs and provide tailored financing solutions that will help to pave the way for a successful 2024.
If you have any further questions about our services, get in touch with a member of our team today.