Funding for Florists and Floral Shops – An alternative to bank loans

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Home Page > Finance > Loans > Funding for Florists and Floral Shops – An alternative to bank loans

Funding for Florists and Floral Shops – An alternative to bank loans

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Posted: Aug 01, 2010 |Comments: 0
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Florist lacks funds

I went to buy a dozen roses for my wife last week but the floral shop only had 6 stems left.  When I asked the manager why they didn’t have more, they cited the economy was preventing them from having enough stock. Mother’s Day had passed  just two months before and I left wondering how that could be. We all know that banks have backed away from lending but surely there had to be a solution.

As it turns out, my neighborhood florist wasn’t aware of their options. According to analysts, florists are one of the few industries that actually still have easy access to capital. Merchant Cash Advance providers offer funding fast and florists continue to be on their top 10 most funded business types.

Seasonality
If you’re in the floral business, your world revolves around the make-or-break holidays: Valentine’s Day, Mother’s Day, Easter, Christmas, and Prom/Graduations. Sales can increase as much as  500%. According to Aboutflowers.com, 32% of all adults bought flowers or plants as gifts for Mother’s Day in 2009.  Since that doesn’t happen every day, floral shops have it tough. Over the span of a year, business is profitable but it’s the seasonal cash flow fluctuations that can create chaos. When a holiday is approaching, a shortage of inventory can inflict serious damage.

A Merchant Cash Advance allows you to receive funds now and repay it by diverting a percentage of each credit card sale generated back to the funding provider. A common strategy is to obtain a Merchant Cash Advance in January to prepare and repay the funds throughout the Valentine’s Day holiday and thereafter.  It’s a perfect fit.

Credit
It’s not uncommon for florist owners to have some negative marks on their credit report. Seasonal sales have probably caused you to make a few late payments at some point. Fortunately, excellent credit is not required to obtain a Merchant Cash Advance. Most funding providers require a minimum FICO score of 525. Any lower and you may only qualify for a test run ‘starter funding program’.

Teleflora, FTD, and 1-800 Flowers Friendly
Do you process credit card sales though a national network like Teleflora, FTD, or 1-800 Flowers? You can still take advantage of a Merchant Cash Advance. Funding providers can arrange for a repayment method that involves debiting your bank account, rather than changing your merchant services provider. Evidence that this works is the sheer volume of florists that are using Merchant Cash Advances. Stores processed in-house through a credit card machine may still need to be converted over.

Use of Funds
While managing cash flow and purchasing inventory are the most common uses of funds, your business is not restricted to doing just that. Use it for any reason such as advertising, building upkeep, supplies, equipment, and hiring new staff.

The Result

When I surprised my wife with a dozen roses today, she was ecstatic. “Where did you get these honey?,” She giddily asked. I let her know it was the neighborhood florist. “I’ve always loved that place. I hope they never disappear,”  she remarked. As long as they manage cash flow and have access to capital in these turbulent times, they never will. Fortunately, they have Merchant Cash Advances as an option.

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About the Author:

New York City Merchant Services is a national leader in providing capital to Florists and Floral Shops. http://www.newyorkcitymerchantservices.com

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Best answer:

Answer by Paula
My daughter works at one that is open.

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In the past, so long as we wanted to send flowers to someone staying close by, sending flowers was a snap. All you had to do was visit a local florist, pick your favorite flowers and make the payment. But what would you do if you wanted to deliver flowers at some faraway place?

Online flower delivery has made it easy for us to deliver fresh cut flowers in faraway places. In the past, you had to depend on the agents of FTD (Florist Transworld Delivery) services to deliver your flowers. The process was somewhat complicated. You would go to your nearest branch and order the flowers you like from a very limited choice of selection. Then, you would pay and pray that the agency delivered the flowers you selected in a favorable condition. These services were extremely expensive and you never had any way to be sure that your gift was being delivered in time.

All you have to do is identify a good online flower directory service. These directories allow you to search through their wide selections and make your choices. You may search according to the place of delivery, time of service, type of flowers and occasion. Some directories even have a special category where they allow you to buy directly from growers. These flowers are among the best cut flowers, and when you buy directly from growers, you can avoid paying huge fee and commission.

Local flower shops also have a great amount of flexibility when it comes to the time of delivery. In case of emergencies, you can spot local flower shops that would be willing to deliver flowers on the same day. This would be impossible with international services that deliver flowers overnight. So, before you select local flower shops, see whether they accommodate your needs.

Local flower shops are your best choice when sending flowers to remote places. These shops will have seasonal flowers in stock, so you need not pay extra for exotic flowers. Just be careful that you buy from the right flower shop by going through their website for policies and terms.

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