Case Study: Funding a Seasonal Stock Purchase and Outstanding Bills
- Emily Jackson
- 1 day ago
- 2 min read
The Opportunity
A fast-growing wholesale swimwear business required £85,000 to help prepare for its busiest trading period of the year.
The business was experiencing strong demand from retailers ahead of the summer season and needed additional funding to:
Purchase extra stock before peak demand arrived
Cover unexpected increases in supplier and operating costs
Pay several outstanding business bills
Maintain healthy cash flow during a critical growth period
Although the business was profitable and performing well, traditional funding options were proving unsuitable. The bank was unable to provide a decision within the required timeframe, while revenue-based lenders proposed repayment structures that would have taken a percentage of future sales.
For a seasonal business, this approach presented a challenge. Higher repayments during peak trading could have restricted cash flow at the very time the company needed flexibility to fulfil orders and maximise sales.
The Solution
Somo were able to offer them a Secured Business Loan. Taking a pragmatic approach, we assessed the overall strength of the opportunity rather than relying solely on traditional lending criteria.
The Loan
Loan Amount | £85,000 |
Rate | 8.4% p.a. |
Term | 6 months |
Security | Residential property |
This gave the client access to the funding they needed without placing additional pressure on cash flow during their busiest trading period.
The Outcome
With funding in place, the business was able to:
Secure additional stock ahead of the summer sales season
Meet increased customer demand without stock shortages
Cover rising operating costs and outstanding bills
Protect cash flow during a period of rapid growth
Focus on trading and fulfilment rather than funding concerns
By providing a fast, flexible funding solution, Somo enabled the client to capitalise on a key seasonal opportunity and enter the summer period with confidence. The loan helped the business maximise sales potential, manage short-term financial pressures and continue building momentum for future growth.
