Hokodo’s flexible payment terms allow small businesses to prepare for seasonal increase in footfall, and beyond

For many businesses, preparing for the festive period requires round-the-clock planning - and the financial strain of getting stock in place to meet customer demand only adds more pressure. However, access to instant, flexible credit online enables businesses to pay their suppliers at a later date, ultimately easing cash flow issues.. 

With Hokodo’s flexible payment terms, e-commerce businesses are empowered to offer customers the ability to pay in 30, 60 or 90 days, without incurring interest or fees. With clear, concise credit terms, Hokodo’s service is preferable to credit cards or business loans for many small and medium sized enterprises (SMEs) as these can often result in further cash flow problems. 

This was the case for Jonathan, founder of gourmet deli Chinley Cheese. Chinley Cheese sees its greatest footfall in the build-up to the festive period, and so investing in stock in the winter months is essential for the business’ success. 

However, after slower months in Autumn, the upfront cost needed to purchase stock in time for Christmas puts a strain on Chinley Cheese. Jonathan was on the lookout for a solution that would alleviate his business’ cash flow issues, without unloading additional costs on his customers. Fortunately, Jonathan’s suppliers partnered with Hokodo - meaning he was able to take advantage of flexible payment terms. 

The ability to delay payment to suppliers using Hokodo provided peace of mind for Jonathan, as it does for many other small business owners, who can be sure they will have plenty of stock in time for the festive period without feeling the burden of unnecessary financial stress. 

“Of all the options out there, including credit cards or any sort of business loan, it makes a lot of sense to be paying with Hokodo,” Jonathan said, highlighting that the small print and high interest rates of credit cards cause unnecessary stress and can create serious cash flow problems. 

“Knowing that I have a duty to pay something on the horizon, knowing exactly what those terms are and knowing that it’s a free credit facility, means it’s a great thing to have.”

Hokodo’s service is not only financially convenient for its users, it’s practical, too. The option to extend payment terms is embedded into the checkouts of the e-commerce companies it partners with, meaning that purchasers can forgo the paperwork associated with traditional lines of credit. 

“Running out of money is the biggest risk for small businesses, but, illogically, these SMEs are the businesses that find it most difficult to access lines of credit,” explains Louis Carbonnier, Co-Founder and President of Hokodo.

“At Hokodo we’re lowering the barriers to entry so small players and even sole traders with limited credit history can access the payment terms they need to survive and thrive.” 

With commercial rent prices and the cost of goods continuing to increase, Hokodo’s payment services will provide stability for a raft of SMEs beyond the festive season, too. Improved cash flow has the potential to benefit businesses year round. Due to cash flow restraints at the beginning of the year, Jonathan wasn’t able to experiment with new stock and suppliers like he can now. This has resulted in an uptick in new customers and opportunities for partnerships with new and exciting suppliers, thanks to Hokodo’s flexible payment terms.

Visit https://www.hokodo.co/ to see how flexible payment terms can support your business.