Labor Day traditionally marks the end of summer and birth of a new school year to youngsters and their parents. Most workers in the U.S. get that day off as an official holiday and many celebrate it with summer BBQs, picnics and maybe even a trip to the beach.
Yet to small business owners and managers, the Labor Day holiday can signal a back to normal switch both in the mindset of employees as well as for the standard business cycle. Unless you manage a summer seasonal business such as hospitality, travel or landscaping, most businesses experience a downswing during the months of June, July and August. Employees go on vacations and customers seem to spend less. While most everyone deserves a break now and again – and studies have shown breaks from work can actually increase worker productivity – the unhurried summer pace can leave some businesses in a financial pickle.
Finance a September Uptick in Business with Accounts Receivable Factoring
Businesses looking to prepare for the spike in business that usually comes once fall arrives can take advantage of accounts receivable factoring services to get cash or a line of credit when they need it. Your cash flow can take a hit when your sales slowdown, which can leave your business in a rut. Such a state can make it hard to pay regular monthly bills let alone put down cash to increase production or fulfill new orders. Most factoring companies today can provide other forms of fast-turnaround small business financing options such as:
- Purchase order financing or simply P.O. financing for those in manufacturing or wholesaling
- Equipment lease financing, even including equipment leasing
- Asset based financing by leveraging existing inventory
- And even small business, start up, or working capital loans
Get Out of the Summer Doldrums with Factoring Receivables
Each of these small business finance options has its advantages depending on your industry, how quickly you need the money and what your current circumstances are. With factoring and other funding options, you can make sure your business has enough cash or credit available to boost production, move into a booming territory or market, or simply cover the costs of a large number of orders.
When coming out of a slow season, accounts receivable financing can be used to make sure your working capital expenses are covered, including payroll, overhead, taxes, equipment and materials and other operational costs. With accounts receivable factoring, you can make sure to have a strong autumn season even if your summer sales took a dip.