Best Times of Year to Apply for a Small Business Loan

What is a Small Business Loan

In many cases, a consistent cash flow is critical to the success of a small business. A merchant must purchase the appropriate amount of merchandise during peak seasons and holidays to remain in business when customers require a specific item. However, it may be difficult to see how much money goes into planning, such as bringing in merchandise and having a rainy day fund.

This is when it’s time to apply for a small business loan. A small business loan is a financial plan where merchants receive funding from vendors like banks. The funds are then repaid over time with interest rates, and these fees do not always remain consistent throughout the repayment process. Some loans begin with a fixed rate and progress to a variable rate, whereas others start with fixed or fluctuating rates.

The loan is intended to allow the owner to generate enough revenue with the funds to cover the amount. They must evaluate their peak and slow sales periods and calculate the funding required to exceed the loan amount based on past and projected cash flow.

Low Credit Score

First, you may want to think about why applying for a loan is not a good idea. A low credit score can be a red flag if you wish to obtain the necessary funds for your business. Just as customers with low credit might be rejected when applying for a credit card, merchants may be denied by banks or other lenders. Even if a merchant with low credit is approved, they must thoroughly examine the pros and cons of accepting the funding. Loans awarded to merchants with low credit scores may be limited and may not meet the funding level they need. They also often carry high-interest rates, and merchants have the possibility of losing significant income from applying for one, thereby further reducing their credit score.

Be extremely careful when applying if you possess a low credit score. Instead, explore ways to improve your credit score and check your score monthly.

Slow or Busy Season

Whether your business is experiencing a slow or busy season, applying for a loan can help with expenses. Obtaining these funds is also required to maintain a steady revenue during a slow season when sales can be difficult. If it is a busy season, getting the money you need, even if your merchandise is flying off the shelves, is beneficial because it can help you purchase more of the in-demand merchandise. They can also allow merchants to put hot-sellers on sale and create a buying frenzy.


In terms of holidays, whether it’s the Fourth of July, Easter, or Christmas, merchants must ensure that sales continue to flow during these critical times. If a merchant lacks the cash flow to replenish inventory quickly, they may be left with empty shelves. And as a result, many customers will go to your competitors to get the holiday merchandise they want.

In addition, obtaining the money needed to stock the shelves can be used in various ways. For instance, a retail store owner may use the extra funding to expand a stockroom that doesn’t have enough room to meet their needs and hire seasonal staff for customer services and sales.

New Product or Service

When a company launches a new product or service, the funding can help finance the items required to market the product. For instance, a holiday shop that plans to start selling Christmas Trees can offer gift wrapping services, and selling hot chocolate will need funding for these new offerings. This includes purchasing trees, wrapping paper, hot chocolate, and related equipment, and procuring extra staff. To market those products and services, you need to advertise on social media and print out posters and brochures to make your business popular. You can also apply for a cash advance but you need to apply with the right company. National Retail Solutions (NRS), the leading POS system provider, offers customers with a cash advance in as little as 24-48 hours. If a merchant applied for a bank loan, it could take weeks or even months to get the funding they require. A bank loan also requires a large amount of paperwork and a high credit score. Poor credit is not an issue with an NRS cash advance, and no paperwork is required. To learn more about what other offers are available and how you can get the funding you need visit:

Now that you know whether or not you should apply for a loan and what you can do with one, you are ready to start a successful business. Remember to keep these tips in mind throughout your business career because when these occurrences arise, it is always a good idea to have a backup plan in place regardless of whether you choose to use those funds. Happy planning!

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To learn more about NRS and how we can help you and your business contact (800) 212-1477 to get started!