How to use short-term credit to stock up before peak season

Peak season can reward a prepared trader, but only when every naira has a clear job. Before borrowing, compare last season’s sales with your current stock position and identify the products that moved fastest. Focus your order on proven demand rather than adding too many new lines at once.

Start with the cash cycle

Write down when you will pay suppliers, when the stock will arrive, and how quickly customers normally pay you. A one-month facility works best when your expected sales cycle fits inside the repayment period. Keep a buffer for delivery delays, price changes, and slower-than-expected sales.

Protect your margin

Calculate the full landed cost of each item, including transport, duties, packaging, transaction charges, interest, and the processing fee. The expected profit after all these costs should comfortably cover repayment.

Plan repayment before checkout

Set aside part of each day’s sales instead of waiting until the due date. A simple repayment reserve helps protect your working capital and keeps the business ready for the next opportunity.