SME Business Guide

Stocking loans and how they benefit your business

These loans are designed to provide working capital to businesses so they can stock up on inventory to meet the increased demand during the festive season.

Why are stocking loans beneficial to SMEs?

Businesses often experience a surge in demand during the holiday season, especially leading up to Christmas. Stocking loans allow businesses to purchase additional or specialised inventory to cater to the specific demands of the Christmas season. This ensures that they can meet customer demand without losing out on potential sales. Having a well-stocked inventory during the Christmas season also gives businesses a competitive edge over their competitors. It allows them to offer a wider range of products and ensures that they don't lose out on sales due to insufficient stock.

Stocking loans can be a crucial lifeline to seasonal businesses. Seasonal businesses may experience fluctuations in cash flow, with the holiday season often being a peak period. Stocking loans help these businesses manage their cash flow effectively by providing the necessary funds to purchase inventory, which can then be sold to generate revenue during the busy season.

The business may also wish to invest in marketing and promotional activities during the festive season. A quick boost to cash flow from stocking loans allows businesses to run marketing campaigns attracting more customers and driving sales.

Proper planning and accurate sales projections can help businesses determine the appropriate amount to borrow and manage their inventory effectively during the Christmas season.

Our merchant advance loan product is perfect for restocking loans for retail, hotels, restaurants, e-commerce, cafes and more. We take into account your seasonal fluctuations meaning that when you are earning less, you pay less. 

To apply for a merchant advance loan with us. All you need to do is register for an account with us and fill out our 5 minute application form. To accompany your application, all we require are 3 sets of documents: 

  • 6 months bank statements / open banking connection

  • 3 months merchant statements

  • Tax clearance certificate

Our credit team may ask for additional information. We'll get a decision back to you in 24 hours!