At the time of writing, there’s exactly one week until Christmas. Though some of your friends and family may be winding down at work, for many entrepreneurs this is a time of robust economic activity as shoppers ready their bank accounts for a final splurge of seasonal spending. This means increased demand, increased custom and increased opportunities for your business. Whether you’re a veteran who has seen many a festive season come and go and knows how to adjust your business plan accordingly or you’re a wet behind the ears startup staring down the barrel of your first Christmas in business one thing’s for sure… Your performance over the coming week will be a telling indicator of your financial health this quarter.

Now more than ever it’s time to look to the old adage, that cash is king. In an age where contactless payments and initiatives like Apple pay are making transactions faster and more secure, this may seem like a quaint anachronism of yesteryear but it rings as true today as it ever has.

Why is cash still king?

There are many reasons why consumers, businesses and investors say no to credit, especially around this time of year. Though many will be relying on plastic this Christmas, most consider the festive period as a time when it’s especially important to box clever with their finances. Cash is neither duplicitous nor hard to quantify. What you see is what you’ve got. Here we’ll look at ways in which paying off their Christmas shopping with cash benefits consumers which in turn benefits your business.

Cash is king for the customer

Consumers are likely to have their savvy hats on even as they carry out those last few frantic panic buys. They carry cash because it makes it easier to track their spending and limits the likelihood that they’ll make impulse purchases. This does not, however, mean that they won’t be amenable to upselling or bundle offers. They will be looking above all for value and if you can provide it, they’ll be happy to pay for it. Even if they’re using cash from short term loans, visit website for details, they’ll still recognise the benefits of cash over Christmas. As savvy as this may be for them, it also benefits your business.

Cash is king for your business

Cash is easy for customers to track but it’s equally easy for you to track. More cash purchases makes your accounting easier and reduces the risk of financial inconsistencies.

At a time of increased custom and demand, liquidity is more important than ever for your business. More cash means more cash flow. This will enable you to take advantage of opportunities that are likely to present themselves over Christmas. You can bulk order stock and get a better deal. You can invest in extra staff hours or seasonal staff so that demand doesn’t detract from your customer’s experience (long lines and over worked employees are likely to send customers straight to your competitors). It also means that you’ll be able to pay bills and suppliers faster and make capital investments that will ensure prosperity long into the new year. 

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