New Year Cash Flow Problems? Here’s How to Access Emergency Finance

Why cash flow problems arise in the New Year

The start of the new year can create a perfect storm of financial challenges for businesses that make cash flow management tricky, including:

Seasonal sales dips

The festive shopping rush is over, which means many industries face lower customer spending and ultimately, lower revenue.

Outstanding invoices

The Christmas period can often mean customer payments are delayed, which creates a gap in your finances when you need cash the most.

End-of-year-expenses

Bonuses, holiday pay and supplier bills from the fourth quarter can spill over into January, tightening your cash flow and impacting your planning for the year ahead.

Sound familiar? While these issues can feel overwhelming, the right financial support can help steer you through.

What is emergency finance?

Emergency finance is a lifeline for businesses experiencing cash flow struggles. These loans are designed to provide the quick boost of funds you need to address urgent financial gaps and avoid the risk of insolvency.

Here are the key types of emergency finance to consider:

Business loans – A short-term business loan can provide the funds you need to cover essentials like payroll, restocking inventory and settling overdue bills.

Invoice financing – Waiting on payments? Invoice financing lets you borrow against your outstanding customer invoices, accessing most of the invoice value immediately to boost cash flow.

Overdraft facilities – Extending your bank overdraft offers a fast and flexible way to access funds when cash is tight.

Asset-based lending – This solution allows you to use business assets like equipment or inventory as collateral to secure funding when you need it most.

Merchant cash advances – Merchant card finance is perfect for businesses relying on card payments. A lender provides a lump sum, which is repaid as a percentage of your future card transactions.

Which emergency finance option is best for your business?

Emergency finance isn’t a one-size-fits-all solution. No two businesses face identical challenges, especially when it comes to managing cash flow. Factors like your industry, the size of your business and seasonal demand all influence the type of support that will work best for you.

For instance:

Retail businesses may need a short-term loan to replenish inventory after holiday sales deplete their stock.
A construction company with high-value equipment might use asset-based lending to unlock cash by leveraging their machinery as collateral.
A small café relying on daily customer transactions might find a merchant cash advance the most practical, as it links repayment to their card payments, aligning with their revenue.

If you’re unsure which financial solution is best for your situation, contact our team today for advice.

Accessing emergency business funding

Accessing emergency finance doesn’t have to be daunting. With the right support, you can take charge of your cash flow and confidently move your business forward. Here’s how to get started:

Identify your needs

Determine which type of funding best fits your situation. If you’re unsure, consulting finance specialists like Jones & Co can help you secure the best option.

Submit your application

Prepare any necessary paperwork, such as financial statements, tax returns, asset details and invoices, to help streamline the application process.

Await approval

Once your application has been reviewed and approved, you’ll have the funds you need to start 2025 with confidence and without financial strain.

Why choose Jones & Co

When cash flow challenges arise, having the right support can make all the difference.

At Jones & Co, we understand the cash flow hurdles businesses come up against at the start of a new year, which is why we’re committed to providing tailored financial solutions that work for you. Our clients rely on us for:

Access to trusted lenders – With a network of reliable and reputable lenders, we can connect you with the right funding source for your situation

Speedy turnaround – Time is critical when you’re facing a cash flow crisis. At Jones & Co, we work efficiently to secure your funding quickly.

Expert guidance – From choosing the best funding option to navigating the application process, our team provide professional advice and support every step of the way.

Don’t let financial strain hold you back. For tailored advice and support, contact our expert team today and let us guide you to a financially secure start to 2025.

Insights

Finance in the news

View all news

What the Latest Base Rate Cuts Mean for UK Businesses

Are you navigating the ups and downs of borrowing costs, cash flow pressures, and shifting consumer spending?

The latest decision by the Bank of England to cut the base rate from 5% to 4.75% could mark a turning point for UK businesses.

Bizcap’s International Deal – Deal of the Quarter

When Jones & Co, in partnership with Bizcap, were approached by an international paving importer seeking a unique financing solution, we were met with a complex set of challenges.

The company needed a loan facility to support working capital and expansion. Together, we crafted a unique solution to help the business grow, even in the face of complex and legal obstacles.

What is the Best Way to Refinance My Business?

Refinancing involves replacing or restructuring your current loan with another to secure improved terms, such as lower interest rates and manageable repayment terms. It can be an effective strategy for businesses facing loan-related financial challenges to achieve stability and growth.

In this blog, we explore the business advantages of refinancing and how Jones & Co can help you regain financial stability.

£1m Unsecured Facility Loan for High-End Toiletries Specialists

Jones & Co are finance partners to a leader in high-end toiletries and soap products. They use us because they know that, no matter their requirements, we can find finance solutions that deliver time and time again.

We’re a finance partner, not just a broker.

5 Ways to Make the Most Out of Your Business Loan

Whether you want to expand your inventory, invest in cutting edge technology, or move your operation to a larger premises, all of these endeavours require significant funding, which for many businesses is not always available, especially for fledgling enterprises.

In this blog, we’ll explore the ins and outs of business loans, from the different business loan types available, and methods you can use to optimise funding.

Which Property Finance Option is Best for Me?

Whether you’re a seasoned property investor or a prospective homebuyer, the complexity and jargon of property finance can often seem daunting. However, each financing solution has its purpose and benefits, helping you one step closer to your property aspirations.

In this blog, we unravel the various property finance options available, guiding you through the advantages of residential mortgages, buy-to-let investments, commercial loans, bridging finance and development funding.

What is Merchant Finance?

Is merchant card finance right for your business? Explore its benefits, including adaptable
repayments and funding tailored to your needs, with Jones & Co.

Whether you own a local high-street boutique or operate solely through e-commerce, merchant financing offers flexible terms and repayment options to suit your unique needs.

Why Tax Funding can be Beneficial to SMEs and Sole Traders

Discover how SMEs can navigate tax obligation challenges and manage cash flow with versatile tax funding solutions from Jones & Co.

In this blog, our experts at Jones & Co delve into the various tax funding options that are available to SMEs and sole traders and the many business benefits.

Hard Asset Finance vs Soft Asset Finance – What’s the Difference?

In this blog post, we'll be exploring the key differences between two popular types of asset financing: hard asset finance and soft asset finance. So, whether you're a seasoned entrepreneur or a startup owner exploring business finance solutions, buckle up as we navigate through the nuances of these two essential concepts.