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How to manage peak credit demand

Can you manage peak credit demand? Here’s what you can do.

July 2, 2024

Whether you have occasional spikes in credit need or you have clients that do, your ability to grow your business depends on your ability to get the credit line you need, when you need it. If your business faces challenges in obtaining credit, keep reading to learn what impacts that has on your company and what you can do about it. 

When might you experience peak demand? 

Your credit needs could spike for a variety of reasons, including: 

  • Seasonal demands, such as those experienced in the tourism or hospitality industries during the summer or over holidays. 
  • Event-based demands, such as those experienced by media agencies during an election year. 
  • Wide-ranging economic factors, such as a recession, might lead to an increased need for credit. 
  • As you scale growth, such as if you’re a fast-growing company or experiencing a surge in clients you’re supporting. This can be particularly true for start-ups.

What’s the impact when you can’t access credit at peak times?

There are trickle-down and long-lasting effects when you cannot tap into the credit lines you need. Without needed credit, your business may experience: 

  • A decline in customer satisfaction if your inability to access credit means they can’t depend on you. For example, if you’re at a media agency, your clients need confidence that you can support their payment needs. 
  • Difficulties in growing your business, since credit access is vital in developing future capital through business growth. 
  • An over-dependence on invoicing, thereby delaying payment to your suppliers to free up the existing cash flow you have for other needs. 

What are some solutions to manage peak demand?

Dynamic secured credit is one way you can better manage those occasions when you have huge credit needs. Dynamic secured credit allows you to: 

  • Add to unsecured credit lines to augment available credit. 
  • Increase available funds almost instantly when they need it. 
  • Access real-time visibility into available balances. 
  • And so much more!

Paying down debt when and where you’re able will also help you secure credit. Decreasing your credit needs elsewhere can help free up credit needs in areas you need it and will help you get approved for future credit in the future. 

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The information in this blog post is for educational purposes only. It is not legal or tax advice. For legal or tax advice, you should consult your own legal counsel, tax and investment advisers.

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