Have You Considered Your Christmas and New Year Cashflow?
The festive season is great for most people, but for many businesses, it brings one of the tightest cashflow periods of the year. Reduced trading days, early supplier payments, delayed invoices, and seasonal staff costs can quickly put pressure on working capital.
Here are the key things to consider as we move into the end-of-year period.
- Slower Payments and Fewer Working Days
December and early January mean:
- fewer invoicing days
- slower approval cycles
- clients closing early
- delayed payments until mid-January
Even normally reliable customers tend to settle invoices later. Forecasting this slowdown early helps avoid cash gaps.
- Increased Staff & Operational Costs
Many businesses face:
- holiday pay
- overtime
- seasonal staff
- increased fuel/transport costs
- seasonal stock purchases
These costs often hit before festive revenue is collected.
- Supplier Payments Often Come Early
Suppliers frequently require upfront or early payment in December, compressing cashflow even further.
If your business relies on equipment, vehicles, or machinery, this can be especially challenging, maintenance or breakdowns at this time of year can cause unexpected financial strain.
- Are Your Assets Working for You — or Holding Cash Back?
Buying equipment outright in December can drain reserves at the worst possible time. Many businesses forget that asset finance can free up capital and smooth spending:
- refinance existing equipment to release cash
- spread the cost of new assets over time
- delay first payments to the New Year
- preserve cash for payroll and operations
Structured properly, it creates breathing room during a tight period.
- Plan for a Strong Start to 2026
January is often a high-opportunity month, but only for businesses with the cash available to act. Preparing now can help you:
- take on new contracts
- upgrade ageing equipment
- invest in staff or stock
- avoid emergency borrowing later
Strong cashflow gives you a strategic advantage when the new year begins.
- How We Can Help
If you’re reviewing your end-of-year cash position, we can help with:
- Asset refinance to release capital tied up in equipment
- Seasonal payment structures
- Finance options with deferred start dates
- Upgrades without upfront cost
A quick conversation now could make a big difference to your Christmas and New Year cashflow.
While every care has been taken to supply accurate information, errors and omissions may occur. The information in this blog provides general information and is not intended to be financial advice. You should consult a professional financial adviser before making any financial decision. You are solely responsible for any loss suffered from relying on information in this blog. This blog is for the use of persons in New Zealand only. Copyright in this blog is owned by Crediflex.
