Business has its ups and downs with higher earning months and lower earning months. Anyone who’s been in business for some time can attest that there is a general and predictable pattern to which months will bring in the most revenue for your business, and which months will bring in the least.
Unfortunately for most businesses, closing during the least profitable seasons is not an option. During low sales months, there are still fixed and variable costs to pay, which can be difficult if revenue isn’t higher than costs in that particular month.
How can you successfully navigate seasonal revenue fluctuations and make sure your expenses are paid?
Accruing a substantial cash reserve to cover expenses during a down market season can be a challenge for some businesses. There are expenses that are necessary to operate your business and continue growing. In a sense, down seasons can be a time to strategize and prepare for opportunities to be profitable when the seasonal market is back up. This is especially true for making sure your employees are paid on time, which is often the largest monthly cost for any business.
Traditional solutions such as a seasonal loan, especially for a seasonal business, may be tough to secure. And a standard loan can be repaid over a fixed amount of time, but it also increases monthly obligations, which leads to even fewer resources to allocate. Plus, a missed payment can accrue penalties.
Another Option
It’s possible to get a payday loan.
Payro is a company who specializes in short-term payroll loans. Same-day funding is available up to $500,000, once a business is qualified, at rates as low as 1.5% per week.
Thank you to our partner PAYRO for contributing this BLOG content. For more information, we recommend scheduling an appointment to set up your free account with Payro now, so that you’re positioned for the best scenario.
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*Southland Data Processing, Inc. (“SDP”) is not a law firm. This article is intended for informational purposes only and should not be relied upon in reaching a conclusion in a particular area of law. Applicability of the legal principles discussed may differ substantially in individual situations. Receipt of this or any other SDP materials does not create an attorney-client relationship. SDP is not responsible for any inadvertent errors that may occur in the publishing process.