Tips On How To Maximize Fourth-Quarter Sales

Maximizing Fourth-Quarter Sales

Despite health concerns and other current events, sales are still on the rise in almost every industry. As certain regions and states are lifting COVID-19 restrictions, businesses are preparing to maximize their fourth-quarter earnings both on Main Street and through e-commerce. However, to make the most of these last few months, businesses need to increase inventory and marketing to reach existing and potential customers.

Traditional Lending Poses a Challenge for Small Businesses

 The current market for traditional loans is not exactly favorable for small businesses. Traditional lending channels are tightening credit and collateral requirements, making it more difficult for businesses to get the financing they need to prepare for fourth-quarter and seasonal sales. This is especially difficult for smaller businesses and online retailers that heavily rely on year-end sales revenue to help accurately forecast budgets and growth for 2021.

Easier Access to Working Capital

 To get access to the capital they need, businesses are turning to unsecured lines of credit and cash advances. Unsecured lines of credit provide a reliable source of working capital without any collateral requirements. Since unsecured lines of credit are open to both established companies and startups, businesses can get the capital they need for inventory, marketing, and more to take advantage of fourth-quarter sales. Merchant cash advances also provide a source of discretionary capital, so businesses can prepare for seasonal sales. Merchant cash advances do not place any debt on the books, and flexible repayment methods present strains on cash flow during one of the busiest times of the year.

The Advantages of Discretionary Capital

 Both unsecured business lines of credit and merchant cash advances offer discretionary capital. Unlike traditional loans, which are typically designed for a single purpose, discretionary capital allows businesses to stock up on inventory, run marketing campaigns, hire additional employees, smooth out revenue cycles, and use capital for anything the company needs. This gives unsecured lines of credit and merchant cash advances a level of versatility not offered by traditional loans.

Preparing for the Fourth-Quarter Rush

 Many businesses are counting on fourth-quarter sales to not only drive profits, but to also help jumpstart the economy at large. To get a head start on the season, contact the team at First Resource Capital and ask us about our unsecured business lines of credit and merchant cash advances