Keeping a Florist Afloat
Line of Credit Keeping a Florist Afloat
Author: Valerie Mellema
Date posted: 09.28.24

A medium-sized flower shop in the Midwest had been plugging along for years. The owner was a garden lover and had created the company as a way to make money with something he was utterly passionate about. Located in a large city in the heart of America, the business had its moments of slow sales but things always managed to pick back up again. With an array of flowers and great customer service, it seemed this floral shop had nowhere to move but up.

How COVID-19 Caused Problems

COVID changed the world, impacting the floral shop. People stayed indoors, avoiding local businesses. Initially, smaller orders seemed short-term, but COVID’s persistence worsened the problem. Savings dwindled, but the owner refused to give up. Creative thinking was necessary to keep the business open when customers needed services and products.

 

Bringing in Financing to Stay Open and Stocked

With no clear indication of when things would become positive again, the owner started to look into the options. The needed amount could vary based on monthly fluctuations. However, having at least $50,000 available to use when and if needed seemed like a great option. This would ensure money for supplies, paying workers, and other needs until things return to normal. The owner looked into various options to see if one financing method would be far better than another.

Keeping a Florist Afloat

The Introduction of a Line of Credit

The owner considered a traditional business loan but found it unsuitable. Meeting fixed monthly payments could be challenging. Moreover, the owner was unsure about requiring a large lump sum. Having access to money when needed was crucial. The idea of a line of credit made sense. It would provide the owner with the flexibility to draw money as needed, avoiding borrowing unnecessary amounts that would still need repayment. With a line of credit, he’d actively utilize only what was necessary, ensuring the rest remains available if required.

 

Reasons to Select the Line of Credit

One of the most recommended loans, when there are cash flow problems, is a line of credit. It’s possible to cover all sorts of things, from payroll to supplies, to ensure a business runs well. A line of credit lets a business owner draw money as needed. Additionally, it often has a better interest rate than a business credit card. The long-time florist easily qualified based on the length of time in business and annual revenue. The requirements were easy for the florist to meet.

How Things Turned Out in the End

After receiving a line of credit, the fluctuation in business wasn’t as big of a challenge. During slower periods, the owner could proactively utilize some of the money, while in times of booming business, more could be actively repaid. Despite the challenges posed by COVID-19, the situation eventually improved, actively enabling the florist to be readily available for all those in need. Today, the floral shop thrives more than ever. The owner has proactively repaid all the money, yet the line of credit remains open, providing continued financial flexibility. If circumstances ever change again and money is needed to effectively keep things running smoothly, it can be readily and actively utilized at that time.

Keeping a Florist Afloat
About The Author | Valerie Mellema

Valerie has over 16 years of experience as a professional writer of blogs, eBooks, articles and press releases, with a focus on finance and alternative lending. Valerie resides with her family in Texas and is passionate about her horses.

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