The year-end is upon us and it brings a series of holidays with the jolly celebrations of Christmas and the frivolities of New Year. People all around the globe travel and party with their friends & families with the extended holidays that most of them get during this time of the year. As a business, the opportunities are plenty for trade to bloom in this period and it is just too big to let go!
So, you might want to ramp up business operations or tweak your product/service a little bit to match the festive demand, but what if your business lacks funds to oversee those changes? Losing out on customers during global festivals and occasions are losing out on lots of potential customers. This is why you would want sizeable financial backing during such periods of high demand. If not, you might want to consider availing of a business loan to meet those financial expenses and watch your business bloom during the holiday season.
There are several reasons why taking a business loan for holidays can benefit your business, not just in the short run but also in the long haul! Here are a few reasons why you should apply for a business loan during festive seasons:
Marketing
Marketing is a vital component for the growth of any business and promoting your venture during global holidays can give sales a boost unlike ever before! To achieve competitive advantage and greater sales, you need to promote your business online as well as offline, using traditional means like radio, billboards, etc. Depending upon the industry and competition, advertising your business or its products/services requires spending a generous amount of money upfront!
During Christmas and New Year, people all around the world go shopping for themselves or their near & dear ones. This presents a great chance for businesses to make new customers and make long-lasting consumer relationships. So, if your business lacks the funds it needs, taking a small business loan could be a viable option. Counter-intuitive as it may seem, sometimes you need to spend money to make money. Applying for business loans during the festive season could help you market your brand on multiple channels, online as well as offline. So you can go all out with your promotions for enticing new deals or festive discounts to attract customers. You can also include gifts and other freebies for customers who buy in bulk from your business during the festive season.
Upgrade workforce/machinery/software
To put in simply, a business with efficient assets results in an efficient business! Your employees are the everyday face of your business and most of them would be directly involved in communicating with your buyers! So what if you lack the funds necessary to procure manpower for different skillsets? Or for increasing your team strength?
To shore up the finances for salaries and recruitment drives, you need money! Obtaining a small business loan for manpower shortages can help drive sales and achieve the ROI you expected to make. You can also apply foran unsecured business loan which is generally processed very quickly if you happen to find yourself in an emergency over wages. You may also want to upgrade your machinery or buy software that can ease your business process and/or operations. All these require heavy expenses which every business may not have right away! You can thus apply for business loans to optimize your resources and upgrade assets before the arrival of the festive season.
Refinance
Refinancing means to take a business loan to pay off previous debts. You can avail of new loans to stave off high costs due to the previous loan, as refinance loans have lower interest rates and terms of payment than their predecessor. Moreover, refinanced business loans allow a longer pay-back deadline for the business. Business refinances loans cover the old loan amount and also grant additional funds to the business.
Refinancing helps your business to save on high costs, get better rates, gain more working capital, consolidate debt, and improve the CIBIL score of your business during the festive season. So if you have taken a loan previously, due to which the costs are running high, you may consider refinancing your business loan to find cost-effective solutions during the high-demand holiday season.
Consolidate funds
During the Christmas and New Year season, customers can come in thick and fast. As a business owner, you would want your business to be ready to take on the huge rush and demand of the festive season, failing which can have lasting impacts on your business.
As such, it is essential to have funds to see through these days of hectic sales. If you lack the funds to scale up your processes during this time, you would be leaving your customers disappointed. This would also reduce your business’s competitive advantage which may result in a decline in sales and brand image.
It is better to apply for business loans beforehand to stock up during this high demand season and consolidate funds to overcome any eventuality shortly. You can apply forbusiness loans from banks, NBFCs, or government schemes.
Employee incentives
Employees are the driving force of every organization. From the back-end to the front end of the business operations, they form the backbone that plays a critical role in defining the success rate and growth of the business. After working hard all year, maybe they deserve a chance to take a break and see the lighter side of work?
Christmas and New Year have become global occasions with people of every culture and religion celebrating the extended holiday season. So, as a business owner, you may want to reward your employees with incentives and gifts for their sincerity and hard work with some of the surplus you have left after meeting your desired targets with a business loan. You can also throw a Christmas themed party for your workforce so that they can unwind with each other on a personal basis.
