Couple Celebrating Valentines Day

Is your business ready to take advantage of the big consumer spend on Valentine's Day?

Valentine’s Day is a prime opportunity for retailers and hospitality businesses, if they are prepared for the spike in demand, says the Bank of Scotland.

Fraser Sime, regional director for Bank of Scotland Commercial Banking, explains how businesses can manage their working capital to meet seasonal demand: “The allure of Valentine’s Day is on the rise. According to Statistica, the amount spent on the ‘day of love’ has increased by 25% in the last five years.”

But is your business ready to cash in?

Sime says: “Focus on cashflow and working capital to ensure your finances are fighting fit.

"Our latest Working Capital Index has found that businesses across Scotland have a total of £33.2 billion tied up in excess working capital – money that could be released and used when it’s needed most.

“Having sufficient working capital is essential as it means that business owners can invest in their company without running the risk of overtrading.

“Extra staff and stock may also be required to match demand, so having cash on hand to cover costs is vital. In the short term, financial products including arranged overdrafts, business credit cards or invoice and asset finance can help tackle pressure points.

“But if it’s a long term solution that’s needed, asset-based lending can help to protect working capital by unlocking the value tied up in stock or property, and providing access to money that may have already been invested in the business.”


Susie Haywood
Article by Susie Haywood
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