While CFOs, accountants, bookkeepers, and other financial professionals don’t necessarily look forward to fiscal year end because of all the paperwork, the fact is that if you’re in the B2B space, then fiscal year end – which for many businesses is coming up soon on March 31 — can be the BEST time of year.
Why? Simply because fiscal year end is not just about reconciling P/L, chasing down employees to submit expense reports and invoices, and filing corporate tax returns. It’s also the time when many businesses – including your customers – are flush with “use it or lose it” dollars in their yearly budget.
Obviously, they don’t want to “lose it” – because then it’s a missed opportunity to make an important purchase, and it also puts them at risk of getting a smaller budget for the next fiscal year.
And obviously (part 2), you don’t want to them “lose it” either, because you have a beneficial product or service – or both – to offer, and absolutely want to be on the top of your customer’s shopping list.
However, if you’re like many small and mid-sized businesses across the country, you’re facing a looming obstacle: you don’t have the capacity right now to deliver on a big, lucrative order. And that means you’ll be out of the running when your customers go on their annual mid to late-March spending sprees.
The good news is that you can apply right now for a working capital loan, and if approved, the funds you need to expand your capacity will be in your account within days.
For example, you can use your working capital funds to:
- Recruit new staff, or if you don’t want to make a long-term commitment, onboard contractors and specialists who instantly increase your capacity.
- Purchase additional inventory, so that it’s ready for your customers when they want it. As an added benefit, you’ll typically be able to negotiate a better deal from your supplier because you’ll be making a larger quantity buy.
- Run a marketing and advertising campaign, so that customers who have expiring fiscal year end dollars will know that they should be calling and emailing you vs. the competition.
- Afford to offer a special “Fiscal Year End” discount, which helps you attract new customers, with whom you can cultivate a long-term, profitable relationship.
The Bottom Line
Regardless of what tactics and strategies make the most sense in your marketplace, the fact is that you don’t need to have an immediate expense in order to take advantage of a working capital loan.
Instead, as noted above, you can use the funds to increase your capacity – which is wise move any time of year, but especially as fiscal year end approaches. A working capital loan can truly make this the BEST time of year!
Call Mulligan Funding at 855-326-3564 to discuss your financing options today!
The information shared is intended to be used for informational purposes only and you should independently research and verify.
Note: Prior to January 23, 2020, Mulligan Funding operated solely as a direct lender, originating all of its own loans and Merchant Cash Advance contracts. From that date onwards, the majority of funding offered by Mulligan Funding will be by Loans originated by FinWise Bank, a Utah-chartered Bank, pursuant to a Loan Program conducted jointly by Mulligan Funding and FinWise Bank.