- 1 Corporate finance – here’s how to fund your business
- 2 Financing of new companies - what should you know?
- 3 Liquidity & cash flow – what do they mean and why do they matter?
- 4 Leasing, hire purchase or another type of finance?
- 5 Applying for a corporate loan
Tips for dealing with seasonal fluctuations
Seasonal fluctuations are usually about much more than just the demand for purely seasonal products, such as Christmas trees and sunglasses. Most sectors are exposed to seasonal fluctuations, the cycle and impact of which depend on the sector.
Some businesses may experience strong monthly fluctuations, but most are affected by changes in season; the time of year or the peaks and troughs in the business. You may not have even realised that the weather, holiday seasons and other peak periods often have either a direct or an indirect impact on your business. These fluctuations may affect your business greatly – especially if you are not prepared for them. Are you aware of the seasonal fluctuations affecting your business? And if you are, have you prepared for them?
Are your customers not paying their bills on time?
Are you dealing with late payments and having to send several reminders to your customers? Late payments cause liquidity challenges, but mostly for short periods of time only. Constant late payments restrict your business opportunities and operations and make your finances more vulnerable. Luckily, there is a lot that can be done to improve such a situation.
Your bank can offer you various finance solutions
Liquidity is crucial when it comes to your business operations. If your incoming payments do not cover your outgoing payments, your business will run into trouble sooner or later.
A credit account gives you additional liquidity in times when your cash flow is weak.
Are you already familiar with factoring? It is a flexible form of finance, which helps your business to cash in your accounts receivable despite the payment difficulties of your customers. Factoring effectively converts your credit sales to cash sales. Please note that factoring is usually best suited to companies with a turnover of at least 1 million euros due to high administrative costs.
Do you want to apply for a business loan?
Fill the application and we will contact you!Apply here