6 cashflow tips for the festive season
The festive season is fast approaching — and for many businesses, it’s one of the busiest and most financially demanding periods of the year. While retail activity may spike, cashflow pressures also increase as supplier schedules shift, and customer payments slow.
To help you stay in control, here are six smart strategies to keep your cashflow healthy throughout the holiday period and into the new year.
1. Forecast Early — and Revisit Often
Strong cashflow management starts with clear forecasting. Build a detailed cashflow projection that maps out expected revenue, seasonal demand, major expenses, and one-off costs such as holiday promotions or additional staff.
Review previous years’ trends to anticipate peak periods and potential cash gaps, then adjust your forecast weekly during the festive rush. The more frequently you update it, the more control you maintain over emerging challenges.
2. Tighten Your Inventory Strategy
Stocking up for the festive season can quickly tie up capital if not managed carefully. The key is balancing supply and demand:
Prioritise fast-moving lines
Move slow stock early through bundles or specials
Use sell-through data to guide orders
Negotiate favourable terms with suppliers where possible
A smart inventory strategy ensures you’re cashflow-positive while still meeting customer demand.
3. SPEED UP YOUR INCOMING CASH
During the busiest months of the year, quick cashflow becomes even more important. Encourage faster customer payments with incentives, streamline invoicing processes, and automate reminders to reduce overdue accounts.
If your business operates on project work or large orders, consider deposits or progress payments so that cash continues to flow throughout December and January.
4. connect with your broker
Your finance broker can be one of your most powerful allies during the festive season. They can help you understand your working capital position, assess upcoming expenses, and identify funding options before cashflow gaps appear.
Whether you’re considering a short-term cashflow boost, reviewing your current facilities, or simply wanting clarity around your financial position, connecting with your broker early provides peace of mind. They’ll help you prepare for increased stock orders, higher staffing costs, and any unexpected opportunities that arise — all without putting strain on your day-to-day cash.
5. PLAN FOR HIGHER STAFFING COSTS
The festive period often demands more hands on deck. That means extra hours, overtime, public holiday rates, and temporary staff — all of which can hit your accounts before festive sales land.
Plan staffing needs well in advance and build them into your cashflow projections. Cross-train your team to improve flexibility and consider using rostering tools to keep wage costs under control. Staying across your staffing numbers day-to-day ensures you won’t be caught off guard.
6. Don’t Forget January (and February!)
While December is typically busy, early-year trading can be slower — but the bills still arrive on time. Rent, payroll, supplier invoices and quarterly BAS obligations can put pressure on businesses that haven’t planned ahead.
To stay on top of things:
Set aside a portion of your December revenue
Be strategic with payment schedules
Avoid over-ordering stock that will tie up capital in the new year
Thinking beyond December helps your business maintain momentum and reduces post-holiday stress
The festive season brings big opportunities, but it also brings financial complexity. By forecasting early, optimising inventory, speeding up customer payments, planning staffing costs, preparing for the slowdown after Christmas — and importantly, staying connected with your broker — you can keep your cashflow healthy and your business thriving.
Got big plans for the upcoming festive season (and beyond)? Contact Hamilton Finance today or call 1300 023 173 to find out how we can help you get the funding you need.
