SMEs may be unprepared for the boost in sales and subsequent short-term business strain that typically accompanies the summer season.
The problem according to IGF is that retailers often need to make a sizable investment in order to acquire the variety and quantity of stock that is needed to meet consumer demand for the latest styles and trends. As a result, retailers often experience a significant strain on cashflow while they’re waiting for the rise in footfall – and subsequent sales – to materialise.
IGF managing director Tracy Ewen says that to avoid this problem, retailers should make the most of the free, expert advice available in this area. By taking this proactive approach, businesses will be able to find a sensible short-to-medium term funding solution that will help to ease their cashflow concerns and ensure that their costs can be met.
Research from IGF revealed that last summer one in three small businesses were preparing their summer finances by relying on advice from Google and social media alone, potentially exposing a business open to dangerous financial decisions.
Ewen said: “Businesses must be encouraged to seek reliable and trustworthy information from the free and dependable sources that are out there. Retailers may find that capitalising on existing stock or unpaid credit will provide a quick and affordable option, for example, especially as bank loans often take a long time to arrange and have lengthy tie-in periods.”
