5 FinTechs helping retailers manage cash flow during the holiday season

By Gloria Methri

As the holiday season approaches, retailers across the UK are preparing for a surge in demand. Black Friday and Christmas sales are expected to drive a significant spike in transactions. However, with increased sales come higher operational costs, and managing cash flow during this busy period can be a challenge.

Fortunately, a growing number of FinTech companies are offering innovative solutions designed to help retailers navigate these seasonal fluctuations.

From flexible financing options and invoice factoring to real-time payment processing and financial management tools, these FinTechs are empowering businesses to maintain liquidity, streamline operations, and ensure they can meet the demands of the festive season without compromising on cash flow.

Let’s explore five FinTech companies that are helping UK retailers manage their cash flow during the holidays and set them up for success in 2024.

• Capital on Tap

Capital on Tap is a small business credit card and spend management platform that provides flexible financial solutions to SMEs. Its business credit card gives access to quick, interest-free credit to cover expenses and manage cash flow. Retailers can use Capital on Tap’s credit facility to bridge short-term cash flow gaps during busy retail seasons, helping them manage inventory, pay suppliers, and cover operational costs without missing a beat.

• Kriya

Kriya, formerly MarketFinance, is a business finance company that offers B2B payments and credit solutions for businesses, wholesalers, and marketplaces. It specialises in invoice finance, business loans and embedded finance. Retailers can sell their outstanding invoices to Kriya and receive early payment, which helps improve cash flow during the holiday season when expenses may be higher. By leveraging Kriya’s invoice financing, retailers can unlock cash tied up in unpaid invoices, ensuring they have the working capital they need to manage increased seasonal demand.

• Paddle

Paddle is a FinTech platform focused on providing payment solutions for SaaS and digital product businesses. It includes features like subscription billing, automated invoicing, and customer management tools designed to simplify recurring revenue and cash flow management. For retailers offering subscription-based services or digital products, Paddle helps streamline the financial side of the business by managing payments and automating cash flow predictions, which is crucial for maintaining liquidity during the holiday period.

• Swoop

Swoop is a FinTech platform that helps businesses find the best finance options for their needs, including loans, grants, and tax credits. The platform connects SMEs with a variety of funding options tailored to their unique cash flow requirements. Retailers can use Swoop to access various forms of financing, from debt to equity, specifically designed to address seasonal cash flow challenges, allowing them to manage increased demand and holiday expenses efficiently.

• Xero

Xero is cloud-based accounting software that helps small businesses manage their finances, including cash flow, invoices, and expense tracking. It integrates with various financial apps to provide a seamless workflow. Retailers can use Xero to gain insights into their financial health, track cash flow in real-time, automate invoicing, and forecast cash flow during the holiday season, allowing for better planning and decision-making.