Holiday Business Loans
Retailers and small businesses are every so often in need of short term business loans instead of long term business loans. Short term loans have a maturity period of an year or less and most of the time this loans are repaid within three or four months. Holiday business loans are helpful for retailers to build their inventory during the holiday season in order to meet their customers demand and keep up with their competitors.
Holiday Business Loans for Retailers
Retail businesses usually need short time business financing well in advance of the holiday’s in order to begin to buy stock, usually with the business being incapable of paying it off until the holiday ends. Consumer spending typically goes up during the holiday season and retailers countrywide, apart from seeking working capital to increase their stock also need more money for their larger marketing and advertising budgets. During the holidays banks have increased demand to process business loans and merchant cash advances which has opened the doors for other financial institutions, merchant advance companies, and other alternative business loan companies to invest in providing alternative business funding solutions for retailers, more particularly- holiday business loans for retailers.
Seasonal Business Loans for Holidays
To qualify for holiday business loans, retailers usually need to present to their lender (credit union, mutual bank, bank) a comprehensive regimen documentation, a solid business plan, a record of payments history they have made on other business loans they took, a record payment history to suppliers , retailers cash flow history for at least the last 3-5 years, tax statements, and other financial statements. The documents should be presented to the lender in an organized and professional manner. The retailer’s qualification for the holiday business loan will be used in assessing if the business lending instrument is to be secured by surety or if it will be unsecured. The interest for holiday business loans is usually higher than that of interest rates on normal business loans. The loan rates are based on prime interest rates, certain premiums, and the entire business history of the applicant. The business loan lender will then decide the premium by weighing the risk of the retailer seeking the holiday business loan.