This post originally appeared on startupnation.com/start-your-business
It’s that time of year again: many entrepreneurs and small business owners are taking advantage of eager consumers’ year-end purchases and boosting sales opportunities. When it comes time to boost your own holiday sales, you may need extra help in the seasonal financing department.
Luckily, lenders are willing and waiting to provide the funding you need.
Get Free Quote: Money for your business without the hassle with Rapid Finance
How seasonal funding can benefit your business this quarter
1. Upgrade your equipment
An estimated 38 percent of business owners reported spending on new equipment, according to the NFIB Research Foundation’s most recent Small Business Optimism Index, conducted in September 2019.
An end-of-year purchase of new equipment can help fuel demands, since many businesses see an uptick in sales during the final quarter. First, it’s important to consider whether or not purchasing new equipment can help your business remain competitive. If it will, then securing financing for equipment can help optimize cash flow as well as help you realize substantial tax benefits.
In fact, the U.S. government provides an incentive for businesses to purchase capital equipment. IRS Code Section 179 allows accelerated write-offs for capital purchases and is particularly helpful if your business is heavily run on machinery equipment.
You might also be able to benefit from using asset depreciation as part of your financial management plan. Many small business owners and entrepreneurs benefit from being the owner of the asset, which can be accomplished through a RapidAdvance loan or line of credit. You could deduct depreciation as well as interest charges from your taxable income.
2. Purchase a company vehicle
Oftentimes the end of the year is the best time to purchase a company vehicle, because dealerships are trying to unload last year’s model for newer ones. That means there are plenty of sales!
If you are in the market for a company vehicle, seasonal financing can help you achieve this goal. According to the previously mentioned optimism index survey, 23 percent of business owners acquired a company vehicle within the past three months.
3. Grow your space
Now may be the time to expand your facility. This could be a new storefront or even a distribution center. Due to the time of year, fewer people may be looking for commercial spaces, so you may be able to find a good deal with less competition to inflate the price. Buying a property now can allow you to have a fully operational location by the New Year.
4. Inventory funding
Your inventory needs may be different at the end of the year. Perhaps you’re carrying a new collection of merchandise, or seasonal designs. Seasonal lending can help you fund your inventory for the holiday season.
If you’re on the vendor side, business owners will likely consider purchasing products from vendors that have historically performed well during the fourth quarter. It’s a win-win!
5. Assist with payroll
Finally, you can also use your seasonal financing to provide overtime pay and bonuses to your staff. It’s not uncommon for businesses to hire additional help during the busy holiday rush, to assist with holiday sales and to prepare for the year ahead.
Gauge consumer demand by running your sales from last year along with a projection for this year’s numbers. You can then use this information to determine how many (if any) new employees you will need to staff this holiday season.
Secure your financing today
Take advantage of the many opportunities that Rapid Finance has available for funding your business this time of year (and preparing for the year ahead). Rapid Finance offers fast decisions and can deliver your loan within three business days. They have a variety of business solutions that you can use to get the financing you need for your business.