For traders, distributors and retailers, a few weeks of the year can make or break the whole year. Christmas and New Year, Easter, Sallah and back-to-school all bring sharp spikes in demand. The challenge is that stock has to be bought well before customers arrive, often when cash is tightest.

The cost of running short

Running out of stock during peak season doesn’t just mean lost sales that week. Customers go to a competitor and may not come back. Buying in a rush also often means paying higher prices or settling for whatever suppliers have left.

How inventory finance works

Inventory finance gives you funds to buy stock in advance. The stock itself, along with your sales record, supports the loan. As you sell through the season, you repay from the proceeds.

Buying earlier and in larger quantities can also help you:

• Negotiate better prices with suppliers who reward bulk orders.
• Lock in costs before prices rise closer to the season.
• Keep your own cash free for rent, staff and day-to-day expenses.

Plan it properly

Start from last year’s sales for the same period, adjust for anything that has changed, and order accordingly. Be realistic: unsold stock still has to be paid for. Focus the financing on fast-moving items you’re confident will sell, and schedule repayments to fall after your peak selling weeks, not before.

Getting ready for your busiest season? Peach Financial’s Inventory Finance Loan helps you stock up ahead of demand. Find out more or apply online.