Using a business credit card to manage the festive season

The festive season brings many opportunities for businesses, but it can also put pressure on your cash flow. From stocking up early to managing staff celebrations, December often means spending more before the New Year rolls in. A business credit card could help you stay on top of seasonal costs. And, in some cases, provide the opportunity to earn rewards on your Christmas spending.

Make the most of seasonal spending opportunities

December is a time of opportunity, but seizing those opportunities often means investing ahead of time. For retailers, it might be securing stock at the best rates; for hospitality, it could be refurbishing spaces for the party season; and for software businesses, it may mean scaling up infrastructure to handle increased holiday traffic. 

Having access to flexible credit can help you act decisively when chances for growth present themselves.

A business credit card gives you the freedom to …

Buy stock in bulk to secure better rates

Suppliers may offer discounts for bulk purchases. A business credit card can help you take advantage of these opportunities if cash flow is tight, potentially saving while making sure you’re well-stocked for the rush.

Invest in seasonal marketing and promotions

Getting your marketing right before the holiday season can be the difference between a successful festive period and an unsuccessful one. From social media campaigns to local advertising and seasonal promotions, a business credit can help you cover costs to invest in marketing at one of the most important times of the year. 

Cover increased staffing costs

The festive rush often means bringing in temporary staff or increasing hours for existing teams, especially in retail and hospitality. Your business credit could potentially help manage these extra wage costs before December’s revenue starts flowing in, including overtime and seasonal bonuses.

Pay for parties and team celebrations

Rewarding your team can really help with morale, but end-of-year celebrations are often a strain on cash flow. Using a business credit card for the likes of venues, catering and entertainment can help spread these costs and give the team a much-deserved festive party. 

Manage day-to-day expenses while waiting for December invoices

December’s payment cycles often slow down as businesses close for the holidays and accounts departments work reduced hours. This means invoices that usually take 30 days might stretch out a little longer. A business credit card provides the flexibility to keep paying suppliers and managing routine expenses while waiting for these delayed customer payments to arrive.

Turn festive costs into future rewards

Not all business spending has to be an expense. With the Funding Circle Cashback business credit card, you can earn an unbeatable 2% cashback on all your purchases for the first six months (up to £2,000), then 1% cashback uncapped after that. Those end-of-year costs could actually offer rewards in the form of cashback. 

Many businesses find their spending patterns change during December. From buying extra stock to covering seasonal events, your usual payment cycles might need more flexibility. With up to 42 days interest-free credit and no monthly fees, our Cashback card can help cover necessary expenses for your business. 

Managing seasonal cash flow fluctuations

December can be a challenging month for cash flow. While some businesses see their biggest sales of the year, others face a quiet period before picking up in January. Either way, a business credit card can help smooth out these seasonal ups and downs.

Smart ways to use your credit card

Whether you’re managing increased sales or bridging a quiet period, smart use of your business credit card can make a real difference. Take time to plan your approach, looking at both your immediate needs and how you’ll manage repayments when January arrives. 

Consider mapping out your expected December cash flow, factoring in both the usual end-of-year expenses and any seasonal opportunities. The preparation helps you use your credit card strategically rather than reactively, so it supports rather than strains your business finances.

Considerations for your festive finance planning:

• Set clear budgets for different expense categories
• Track spending through your card’s app or online banking
• Plan repayments around your expected January income
• Review your credit limit against anticipated needs
• Consider setting up spending alerts to stay on track

Getting your business ready for the season

Having the right financial aids in place before the festive rush can help your business run more smoothly. A business credit card can also give you more control and visibility over your spending when you need it most. 

Start by reviewing your likely December expenses and January income. This will help you understand how much flexibility you might need. Having clarity before the season begins means you can focus on running your business rather than putting your energy into cash flow.

Choosing the right card for your business

Not all business credit cards are created equal. During the festive season, features like flexible payment terms and rewards can make a significant difference to your bottom line. Look for cards offering clear interest rates, useful perks like cashback and easy expense tracking. Pay attention to any fees or charges, and make sure the credit limit aligns with your seasonal needs.

Consider what matters most to your business. If you’re planning significant Christmas stock purchases, a higher cashback rate might be your priority. If you’re more concerned about managing cash flow, look for cards offering longer interest-free periods or flexible payment terms.

A very merry business credit card

Smart use of your business credit card during the festive season can help you manage seasonal pressures while earning rewards on necessary spending. Just remember to plan your repayments, so you can start the New Year focused on growing your business, not managing debt.

05/12/24: While we want to help as much as we can, the information found here is provided solely for informational purposes and should not be considered financial or legal advice. To the extent permitted by law, Funding Circle does not accept any liability for any loss or damage which may arise directly or indirectly from the use of, or reliance on, the information contained here. If you have any questions, please speak to your professional adviser or seek independent legal advice.