Many SMEs in the retail sector need efficient financing options to keep cash and customers flowing through the business. Yet, they run into perennial challenges in securing financing quickly enough to weather seasonal disruptions. In any customer-centric industry that is sensitive to fluctuations in demand due to seasonality, trends, or even weather, having access to fast business finance empowers them with the flexibility to move with the flux instead of getting flustered. 

Unfortunately, the traditional lending route does not lend itself well to businesses that experience seasonal fluctuations, as critical cash flow finance is not approved fast enough to match changes in consumer behaviour, which happen in a matter of days — sometimes hours. A cold front could ramp up demand for gas heaters overnight, and there’s no telling when TikTok will next make a fast-moving consumer good like the Clinique Almost Lipstick in Black Honey go viral again. 

Fortunately, there are SASFA-registered alternative lenders available to meet precisely this kind of demand. Here are some reasons why SMEs in retail should consider alternative finance for efficient and flexible cash flow solutions. 

Flexibility in retail financing options 

Traditional loans typically entail a lengthy and complex application and approval process, and they also come with fixed payment schedules that can clash with cash flow fluctuations caused by seasonality and trends in retail. On the other hand, alternative lenders like Bridgement offer tailored solutions that can be adapted to the specific needs of a growing SME. 

For example, a business line of credit offers a much more flexible approach to business funding than a traditional loan. Instead of committing to months of fixed repayments, businesses can apply for a credit facility up to a predetermined amount, and then withdraw a precise amount from that facility as and when required — just like a regular credit card, but for businesses. This type of alternative financing gives SMEs much more control over the cost of finance and allows them to react swiftly and effectively to minor changes in consumer demand. 

Keep cash flowing, even when invoices are unpaid  

Retail businesses may also benefit from a kind of alternative financing called invoice discounting, which entails an alternative funder advancing funds based on the amounts due from invoiced customers. Invoice financing allows growing retailers to continue to stock inventory and meet customer demand while waiting for clients to settle their invoices.

Faster access to crucial capital 

Time is of the essence for SMEs operating in retail, especially during peak periods or when seizing a unique market opportunity. In the age of internet virality, there’s no telling when products are going to be flying off the shelves — whether bows make another overwhelming comeback to fashion or consumers queue for hours to satisfy their thirst for the next Stanley Quencher reusable cup (to fill with a Prime beverage, perhaps?), retailers need to secure speedy access to capital to ensure that they can purchase on-trend goods while demand is still high. 

This can pose a challenge if your only source of business funding comes from traditional finance institutions, which can take weeks or even months to process applications and disburse funding. In contrast, alternative funders like Bridgement offer efficient and secure online application and assessment processes, meaning your business can access up to R5 million in 24 hours or less. 

Zero-obligation retail finance for peak flexibility 

Whether your retail business is striving to improve customer satisfaction with superior products and service, trying to take advantage of bulk pricing, or investing in time-sensitive tactical marketing to drive traffic through your store, flexibility is key in this industry. One of the best parts about Bridgement’s funding solutions is that, unlike traditional finance, you aren’t obligated to use the facility once it’s been approved — and you’ll only ever pay for what you use. 

Secure a Bridgement facility in three easy steps: 

  1. Take 2 minutes out of your day to apply for a Bridgement facility online. 
  2. Connect your bank or accounting software for a secure, speedy, and convenient assessment, or upload documents with the click of a button.
  3. Once your facility has been approved, enjoy flexible access to cash flow funding.

Retail is seasonal, but alternative financing options never go out of style when you partner with a lender who understands unique SME requirements. Apply to Bridgement today and grow your retail business as early as tomorrow.