Helping SMEs through holiday season crunch

As 2025 winds down, many small and medium-sized enterprises are reviewing their finances and planning for growth in 2026. This makes it an ideal moment for brokers to open a dialogue with their clients about their business lending needs, especially as a growing number of SMEs are turning to brokers to help secure funding.

“By engaging clients in conversations about their 2026 business plans, brokers can uncover opportunities where additional capital might be required, whether it’s for expansion projects, new equipment, hiring, or simply bolstering cash reserves,” says Nathan Evans, senior business development manager at Bizcap.

Since many SMEs will be reviewing their budgets, growth plans and potential funding needs as the new year approaches, brokers “should proactively raise the topic of business lending now – not wait until a crisis arises”, Evans says.

And by sparking a conversation around what their plans for the new year are and whether they’re expecting a funding gap, brokers can uncover opportunities early.

“This opens the door to discuss solutions like a short-term small business loan or a flexible line of credit,” Evans explains. “Brokers can add real value by informing SME clients of financing options available beyond the traditional bank loan, especially fast, non-bank alternatives.

“Brokers who highlight these fast solutions – and explain that lenders like Bizcap look beyond just credit scores to consider the whole business story – will position themselves as forward-thinking partners.”

Bizcap offers a suite of tailored financing solutions to meet these needs, including:

• Fast Business Loans: Bizcap’s go-to product for immediate financing needs provides borrowers with access to between $5,000 and $500,000, making it ideal for bridging sudden cash flow gaps.
• Small Business Loans: For broader business goals, including expansion projects and managing everyday operations, these loans range in size from $5,000 to $4 million and are often available within 24 hours of approval.
• Secured Business Loans: For established businesses seeking larger loans or better rates, this option enables SMEs to provide an asset as collateral for more favourable terms, making it suitable for significant investments like scaling operations, major capital purchases or long-term projects.
• Bridging Finance: With funding of between $150,000 and $4 million available, this temporary funding option can plug cash flow gaps during transitional periods.
• Line of Credit: Bizcap’s revolving credit facility provides continuous, on-demand access to funds at an approved limit of up to $500,000 for qualified businesses.
• Line of Credit (LOC) Ultra: In late 2025, Bizcap launched this enhanced credit offering with a repayment rate of just 8% for the first month. This is a great option for businesses seeking an alternative to invoice financing or debtor finance.

Helping SMEs with mounting challenges

As the calendar year draws to a close, Bizcap is seeing strong interest in its working capital loan options as businesses need extra liquidity to navigate a period of heightened activity, followed by a potential slowdown right after.

“Key drivers for needing funds include inventory and stock purchasing,” says Evans. “Retailers and wholesalers, in particular, must stock up significantly in anticipation of Christmas and summer sales.

“That means paying suppliers in advance and increasing stock levels, which ties up cash. Similarly, hospitality businesses – restaurants, caterers, event venues – incur higher costs ahead of the holiday rush: ordering extra food and beverages, decor and other supplies to serve the influx of customers.”

“(Brokers) should proactively raise the topic of business lending now – not wait until a crisis arises”
- Nathan Evans, Bizcap

Working capital is also being deployed for staffing and payroll purposes as many businesses hire seasonal staff or pay overtime to handle the peak demand in November and December. Often, wages and associated costs are due before revenue generated from holiday sales is fully realised, creating a “timing gap”.

Evans says, “We’ve seen clients take out short-term working capital loans to cover payroll through January, especially if their receivables won’t be paid until late January or February.

“Some industries experience a temporary slowdown or shutdown over the Christmas/New Year period, such as construction, where many sites close for a few weeks. For those businesses, revenue pauses but expenses – rent, salaries for core staff, equipment leases – continue, so they may seek funding to bridge that quiet period.”

“The holiday period brings both a boom in sales and a host of cash flow headaches for business owners”
- Mendy Ash, Bizcap

Unfortunately, the challenges don’t end there for SMEs.

The tight labour market has been a “double-edged sword”, says Bizcap’s senior business development manager, Mendy Ash. “While unemployment has ticked up slightly, many sectors report difficulty finding skilled staff, and competition for talent drives wages higher. These resource shortages, especially skilled labour, remain a critical challenge.”

Furthermore, consumer spending continues to be patchy at best amid a shallow rate-easing cycle and economic uncertainty. “Weak household spending means many SMEs have seen slower revenue growth than expected,” adds Ash. This makes it all the more important for brokers to guide their clients through these rocky times.

Perfect time to diversify

The summer months provide a perfect opportunity for residential-focused brokers to diversify into the SME space. Property markets tend to cool throughout the fourth quarter as families head off on holiday. Conversely, summer is also the peak season for many SMEs, particularly those operating in the hospitality, retail, logistics and trades industries.

“The holiday period brings both a boom in sales and a host of cash flow headaches for business owners,” says Ash. “This is exactly when a broker with business lending solutions can step in to help.”

While summer can bring with it cash flow lulls for certain businesses, even this provides opportunities for savvy brokers. “Funding solutions can often help businesses cover payroll during seasonal lulls or fill short-term funding gaps so they can keep operations running smoothly,” Ash explains. “By diversifying, brokers can capitalise on these seasonal financing needs.”

Bizcap is seeing a growing number of brokers taking advantage of these diversification opportunities. Because at the end of the day, “it keeps the client from wandering to another broker or lender, positioning the broker as a holistic solution”, says Ash.

This feature was created in partnership with Bizcap.