It’s that time of year again. The decorations are out, Mariah’s warming up her vocals, and business owners everywhere are bracing for the annual juggling act of keeping up with demand and keeping cash in the bank.

But 2025 isn’t your average festive season. Interest rates have been all over the place, consumer spending has slowed, and the ATO continues to step up its debt collection and data-matching efforts.

If you want to avoid the holiday cash flow crunch, now’s the best time to act.

Below is a handy guide to help you manage your cash flow like a pro and head into 2026 with less panic and more cash.

 

before we start: a quick reality check

 

These tips are designed for businesses that are generally profitable throughout the year but feel the cash flow pinch over December and January when revenue slows, customers disappear, and fixed expenses keep rolling in.

If your business is already running at a loss or burning through cash month-to-month, some of these tactics [like discounting, taking on new credit, or expanding stock] can make things worse. In that case, you should focus on stabilising your base first, get advice early, look at cost structures, and review your pricing before adding more fuel to the fire.

It’s a fact that great cash flow management only works when the underlying business model is sound.

 

let’s begin!

 

1. bring more cash in [and faster]

When it comes to cash flow management, speed is your friend. The faster money comes in, the less you rely on overdrafts, payment plans, or good old-fashioned crossed fingers.

Below are a few ways to get cash flowing quicker and a real example of what’s possible when you think outside the box.

 

gift cards = instant cash

 

Gift cards aren’t just for retailers anymore. Cafés, tradies and even business consultants can sell them. They’re prepaid revenue disguised as a Christmas present.

Quick win: Set up a digital gift card option through Square or Stripe this week, it takes minutes, costs next to nothing, and boosts your December cash flow instantly.

 

encourage early spenders

 

Offer early-bird pricing for January bookings or pre-orders: “Book before Christmas, save 10%.” Sure, you trim your margin slightly, but you lock in work [and cash] before the holidays hit.

Example: turning pre-orders into cash flow:

One client needed to pay for inventory that wouldn’t arrive for two months. Our solution: a social-media pre-sale campaign with early-bird pricing. Customers paid upfront, generating cash before the shipment even landed – turning future sales into immediate funding.

With interest rates still hovering around 5.65%, your clients or customers are watching every dollar. Incentivise them to commit now rather than “see how things look in the new year.”

 

make it ridiculously easy to pay you

 

If you’re still waiting on bank transfers or cheques [yes, they still exist], it’s time to modernise. Digital payment options like PayPal, Stripe and Square let customers pay you instantly and that’s worth far more than the tiny transaction fee.

Quick win: Add a “Pay now” link to every invoice. You’ll be amazed how many people pay on the spot when it’s one click away.

 

offer instalments without the pain

 

Buy now, pay later [BNPL] isn’t just for retail and it’s not going away anytime soon. Platforms like PayPal, Pay in 4 or Afterpay for Business let customers split payments while you get paid in full upfront. They take on the debt risk; you keep the cash. Win-win.

 

2. spend smart [because not every expense deserves a bow]

 

Cash flow management isn’t just about inflows, it’s about keeping outflows in check. Every dollar you hold a little longer is one less dollar you need to borrow.

 

be strategic with stock

 

Over-ordering is the silent killer of holiday cash flow. You don’t want to miss sales, but neither do you want shelves [or storage units] full of unsold inventory in February.

Use last year’s data as a guide to determine what you need, not what your gut says “feels right.”

Quick win: Review your top 10 selling items from last December and cut your slowest movers by 30%. You’ll free up cash and space in one go.

 

negotiate supplier terms before everyone clocks off

 

Suppliers are more flexible than you think, especially if you’ve been a loyal customer. Ask for extended terms [45, 60 days instead of 14 and 30] or split shipments to smooth out costs.

Be honest: “We’re expecting a busy season and want to keep our cash flow healthy, can we stretch terms slightly over December and January?” You’ll be surprised how often they say yes.

 

use your credit card strategically

 

Paying by credit card can buy you up to 55 extra days of breathing room, without calling it a loan. The key is to pay it off in full when it’s due. If you’re choosing between two suppliers and one accepts card payments [no surcharge], that’s your winner.

 

importing? watch the dollar

 

If your business relies on overseas suppliers, remember: the Australian dollar still has a mind of its own. Hedging your foreign payments or locking in exchange rates can protect your cash flow from unwanted surprises. Using a payment platform like OFX provides better rates than traditional banks and syncs with your Xero accounting software.

Quick win: Talk to your advisor or bank about forward exchange contracts for large orders. It’s not glamorous, but it’s cheaper than playing currency roulette.

 

3. get funding fit

 

Sometimes even great cash flow management needs a backup plan. Whether it’s a sudden tax bill or a slow-paying customer, having a buffer ready keeps you out of stress mode.

 

explore flexible funding options

 

In 2025, lenders are getting creative with short-term working capital lines, digital overdrafts, invoice finance, you name it. Tools like Moneytech, Prospa or Asset Based Lending can bridge gaps between outflow and inflow without locking you into long-term debt.

Quick win: Check your available credit limits now, not mid-December. Having a facility ready means, you won’t scramble if cash tightens during the break.

Note: If you’re already running monthly losses, adding debt may only delay harder decisions. Use funding strategically, not emotionally.

 

stay on the ATO’s nice list

 

The ATO is paying closer attention to overdue BAS and PAYG debts than ever before. Late payments can now affect your business credit rating.

If you’re struggling to pay on time, be proactive and call them before they call you. A payment plan [that you stick to] is always better than a default notice.

 

forecast like your business depends on it [because it does]

 

You can’t manage what you can’t see. A simple cash flow forecast for December through February that shows money in, money out, and timing can help you spot trouble early.

Quick win: Build a 12-week rolling cash flow forecast in Excel. Update it weekly and share it with your accountant or advisor. If you’re not sure how to do this, ask your accountant. Small tweaks now beat big surprises later.

 

4. revisit your pricing – it’s the unsung hero of cash flow

 

If costs have crept up but prices haven’t, your profit [and cash flow] is quietly shrinking. Inflation may have eased slightly, but wages, rent, materials and energy prices haven’t followed suit.

 

a small increase can make a big difference

 

A 5% price rise on your top products or services could add thousands to your bottom line and often with minimal impact on demand.

Quick win: Review your top five services. If margins are under 40% [or what is your acceptable industry margin], then it’s time for a price refresh. You’re not being greedy; you’re being sustainable.

 

sales can save you or sink you

 

Yes, discounts drive demand. But they also chew through cash if not done carefully. A struggling business that discounts to stay busy often just accelerates its losses.

Focus on clearing old stock , not cutting healthy margins. Say this out loud: turnover is vanity, profit is sanity, and cash is king.

Example: turning slow season stock into $80k in a weekend

When one e-commerce client faced a seasonal sales slump, we suggested a weekend pop-up in her local shopping centre to clear slow-moving stock, recover costs, and cut warehousing fees. The payoff? $80,000 in revenue in two days – proof that turning idle stock into cash can be smarter than discounting healthy-margin products.

 

sell value, not just price

 

Your customers or clients are feeling the pinch too. Be upfront when prices change and explain “why”. Whether it’s better quality, improved service or rising supplier costs, transparency builds trust and keeps cash flowing.

 

5. finish the year strong

 

Good cash flow management isn’t just a Christmas project; it’s a year-round mindset. Getting it right now means you start 2026 with clarity, confidence, and cash in the bank.

Here’s your festive financial checklist:

✅ Launch an online gift card or prepaid option
✅ Review your December–January cash flow forecast
✅ Call your top three suppliers and negotiate terms
✅ Check your funding options [before you need them]
✅ Review pricing and margins for 2026

 

final thoughts

The holiday season can make or break a small business and with a bit of planning, some clear communication, and a few smart cash flow moves, you can keep the sleigh running smoothly all summer long.

And if you’d rather spend December sipping something cold than stressing over spreadsheets, give us a buzz on 1300 BDEPOT.

We’ll help you forecast, plan, and manage your cash flow so you can focus on what really matters, celebrating your wins.

 

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