2 min read
Why retail businesses need finance
Retail ties cash up in stock before the sales arrive, then faces lulls between busy periods. Buying for a peak season means a big outlay months before the takings land, straining cash even when the year is profitable.
What tends to fit
A short facility funds pre-season stock and quiet-month costs, repaid as sales come through. Read managing seasonal cash flow.
What it means for you
See the sector view for retail. Credicorp lends to your company, not to you personally, and takes no personal guarantee. See business loans or apply online.
Frequently asked questions
How do retailers fund pre-season stock?
With a short facility or working capital that covers the up-front purchase and is repaid as the stock sells. It bridges the gap between buying and earning.
What about the quiet months?
Forecast the trough, ring-fence cash in the peak, and bridge any shortfall with a facility arranged while trading is strong.
Related reading
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Read →How do I manage cash flow in a seasonal business?
Forecast the whole year, build a buffer in the peak, and bridge the trough with a facility you draw and repay…
Read →Funding for UK limited companies
Credicorp lends to your company, not to you personally — short-term working capital with no personal guarantee. See what your business could access.