How are you looking this festive season? 

While Covid travel restrictions have eased, businesses are experiencing continued challenges with rising fuel costs, interest rate hikes, supply chain issues, staff shortages and depressed demand for services or products.  Despite this, according to our SME Growth Index, SME confidence is growing and it’s important for businesses to be aware of the additional seasonal challenges ahead all of which can all be navigated with some careful planning. 

Here’s our top five traps to look out for before the festive season arrives.


  1. Slow debt turnover
    The Xero Small Business Insights Special Report on cash flow revealed half of all payments made to small businesses are late, costing businesses $456 million dollars a year in New Zealand. This tardiness becomes more pronounced over the holidays.
  2. Overtrading risks
    The temptation to increase stock levels is high if you sell goods over the holiday period. If you end up with excess stock it could end up being out of season and leave your cash flow crippled.
  3. Inventory Management
    Inventory management  already has its challenges with the ongoing global supply chain issues, it can become even more difficult for everyone involved during the holiday season, including manufacturers, suppliers, retailers, and even employees. This is because the holidays are a busy time, and consumer demand fluctuates constantly.
  4. Christmas sale culture
    It is essential to know your profit margins before discounting stock for sales (or if the market forces you to do so). For example, when a company offers a discount of 25 per cent, its gross profit margin is 30 per cent, and it requires a 5000 per cent increase in sales volume to maintain that margin.
  5. Review funding arrangements
    Most businesses are experiencing an increase in operational expenses, supplier costs and cost of goods due to record inflation according to a recent study by the ASB.  Read more here. Given these challenges, it’s a good time to review your funding arrangements with a particular focus on whether your existing funding will sustain you over the festive season.

The chances are that most small businesses will be impacted by at least one of these challenges. Make sure you give yourself the best chance of ending 2022 on a high note – talk to a ScotPac funding specialist today.

Here at ScotPac, we offer a range of Business Finance solutions that can help you manage your cash flow over the busy festive season. Our team of lending experts can help you unlock the capital and tailor a solution best suited to your business needs.

Use our simple enquiry form or give us a call, and our team can get to work on securing the funding your business needs to thrive. 

We can’t wait to keep you up to date with the latest tips and trends, so look out for more insights delivered posts in the weeks ahead.