With Christmas only a mere few days away, we here at Timelio are offering Australian businesses the peace of mind they need to be well prepared and fully funded before the merry madness begins. Throughout the Christmas and new years period, the cashflow squeeze is greater than ever. Ensuring that demand is met across the holiday season is something that many businesses scramble over. The most pressure undoubtedly falls on business owners, suppliers and distributors to ensure that products are readily available to customers well in advance of the holiday season.
Not only is there a spike in demand, but customer payments are also slower during the festive season, a double hit for business owners. To help relieve some of this pressure, there’s a need for flexible cash flow options for businesses preparing for one of the busiest times of the year.
Our research highlights that the number of days it takes for businesses to get paid increases over the Christmas period by 17 days, taking the total time to get paid to 67 days on average. We see the demand for cash flow increase across our customers in the months leading up to Christmas by more than 35%. This is a result of seasonal demand, most often seen in industries including FMCG, wholesale and construction.
Rather than facing loan rejection letters or waiting around in some cases months for customers to settle outstanding invoices, businesses can receive early payment on their customer invoices using innovative funding platforms, such as Timelio.
Australian beverage manufacturing company, Nexba, is one example of an FMCG brand benefitting from receiving early payments from customers to fund their growth, both locally and internationally. “We chased traditional banks but found their funding structures just weren’t flexible enough. Timelio is why we’re where we are today”, says Troy Douglas, co-founder of Nexba.
Their business has taken off since first funding with Timelio, “I can honestly say Timelio is why we’re where we are today”. Turning over around $8 million last year with 156 per cent net revenue growth and, having just signed a deal with Sainsbury’s that will see the sugar free success stocked in over 500 stores across the UK, Douglas says it is on track to turn over more than $10 million this financial year, with no end to their growth in sight.
Whether you trade on a national or international scale, preparing for the extra demands on cash flow at this time of the year is critical. Importantly, a finance partner that enables you the flexibility to increase cash flow during peak times to support the seasonality of your business. This not only allows businesses to better prepare for the chaos of Christmas but also the ongoing production and availability of goods and services throughout the holiday period.
For more information about how Timelio can help your business prepare for the festive season and beyond, call us on 1300 38 63 63.