Navigating the festive season as a small or medium-sized enterprise (SME) owner is no small feat. While the rest of the world gears up for celebrations and downtime, you’re likely juggling cash flow issues, payment delays, and an uncertain business climate. This time of year can feel far from merry for entrepreneurs, but with the right strategies, you can prepare your business, weather the storm, and step into the new year with confidence.
For most South African companies, it’s standard practice to close during December, giving employees a well-deserved break. Larger firms often accelerate billing cycles to mid-December to finalise payments before heading off for the holidays. However, for SMEs that miss these mid-month cut-offs, payment delays can last until mid-January, creating cash flow headaches.
The festive season also brings an unfortunate knock-on effect across supply chains. Research by Intuit QuickBooks shows that SMEs can expect up to eight invoices to remain unpaid during the holiday period. This shortfall doesn’t just affect business owners—it trickles down to suppliers, employees, and stakeholders who rely on timely payments.
Cash flow issues are one of the biggest challenges SMEs face during the holidays. Unpaid invoices leave businesses struggling to meet their financial obligations, including payroll, rent, and supplier payments. If your company operates in an industry with seasonal demand—such as retail or hospitality—you might find yourself stretched thin trying to stock up and serve customers during peak periods without sufficient working capital.
Start by analysing your historical income and expenses to create a realistic cash flow forecast for December and January. This will help you identify potential gaps and prepare for them in advance. Break down your forecast by week to pinpoint periods where funds might be tight.
Reach out to clients and customers ahead of time with early invoices. Where possible, offer discounts or incentives for early payments. Highlight the importance of timely payments, framing it as a way to maintain strong partnerships.
Take the opportunity to wish your clients a happy festive season while sharing your payment expectations. Use this touchpoint to strengthen relationships by asking for feedback or discussing how you can better support their needs in the coming year.
During the chaotic holiday season, emails and invoices can easily slip through the cracks. Schedule regular follow-ups to remind clients about outstanding payments. Automated reminders can be a game-changer here, ensuring your message doesn’t get overlooked.
Automation is key when transforming your business digitally: Read more on the power of digital transformation
For some businesses, the holiday season is a golden opportunity to maximise profits.
To make the most of the spending spree you should:
If your cash flow is stretched too thin, consider applying for short-term business finance to bridge the gap. Genfin’s Opportunity Bridge Loan offers fast access to up to R5 million, with a 90-day repayment grace period. This allows you to secure funds without immediate repayment pressures, giving your business room to breathe.
With quick approvals and no ongoing premiums, this type of financing can help you:
The festive season is also a good time to review your financial practices and build resilience for the future. Here’s how to ensure your business is prepared for next year’s challenges:
Enjoy the convenience of a 100% online application process that takes no more than five minutes. Get started with only 12 months’ bank statements and receive feedback in only 24 hours.
We understand that the festive season can be remarkably stressful for our country’s SMEs. That is why your cash flow needs are our top priority. What’s more, our transparent and flexible terms mean you always know where you stand.
With Genfin, you are always in safe hands.
Apply ONLINE. Receive an offer in 24 hours.
Release up to R5 million with a 90-day repayment grace period.
