Quick answer
Retailers fund Christmas stock with supplier terms first, then a line of credit, stock finance or a short-term loan sized to what will sell. Work backwards from expected sales and the gross margin on each line, order what you can move before Boxing Day, and arrange funding early. Late October still leaves time, but not much for imported goods.
Key points
- It is 25 October: Black Friday is 27 November 2026 and Christmas Day falls on a Friday, so local reorders need to land by early to mid December
- Stock bought on credit is a promise to pay in January, so size the order to what will sell at full price, not to what looks safe
- A markdown can cancel the margin on an order, which makes sell-through the number that matters most
- Gift cards sold in December are a liability until redeemed, so they are not spare cash
- Lenders prefer funding that matches the stock cycle, repaid from sales, over open-ended debt
Most retailers know what they should have ordered by now. The question on 25 October is what to do with the calendar they have left. Black Friday is just over four weeks away, on 27 November, and Christmas Day lands on a Friday this year, which hands shoppers a full final weekend and a Saturday Boxing Day straight after.
This guide is about the money side of that squeeze: how much stock to fund, how to pay for it, and how to avoid ending January owing for goods sitting in the back room.
How much stock is the right amount?
Not the amount that feels safe. The right amount is the quantity you expect to sell at full price before Boxing Day, plus a small allowance for the lines that surprise you.
A simple method:
- List your top categories and last year’s sales by week for November and December.
- Adjust each for what you have seen this year: a trend up or down, a new range, a change in foot traffic.
- Convert expected sales to units, then subtract stock already on hand.
- Order that gap, but hold 10 to 20 per cent of the budget back for reorders on fast sellers.
The reason to hold budget back is that chasing winners in December works better than guessing everything in October. A retailer with cash on 5 December and a supplier who can deliver in a week can add stock that is already proven.
The other half is sell-through: the share of stock you sell before it needs discounting. A line that sells through 85 per cent at full price is a good buy. A line that sells 50 per cent and clears the rest at 40 per cent off may have lost money.
What does a markdown do to the maths?
Markdowns are the quiet cost of overbuying. Suppose a product costs you $40 and sells for $100 (a 60 per cent gross margin). Sold at 30 per cent off, it brings $70 and the margin falls to $30. At 50 per cent off it brings $50 and the margin is $10, before wages, rent and card fees.
Now suppose you buy 100 units. If 80 sell at full price and 20 at half price, the total revenue is $9,000 against $4,000 of cost. If instead only 50 sell at full price and 50 at half, revenue is $7,500 against the same cost. Same order, $1,500 less, and a cash position that depends on how fast you can move the second 50.
That is why lenders and accountants ask about stock turn. Our guide on inventory and cash flow covers the measure in detail.
What dates matter this year?
| Date | Why it matters |
|---|---|
| Late October | Last realistic window for local reorders and for arranging funding before leave season |
| Friday 27 November 2026 | Black Friday; many retailers see a spike that pulls demand forward from December |
| Monday 30 November 2026 | Cyber Monday for online sales |
| Monday 21 December 2026 | Monthly BAS for November due for monthly lodgers |
| Friday 25 December 2026 | Christmas Day; most shops closed |
| Saturday 26 December 2026 | Boxing Day trading, with sales starting early or running online |
| Monday 1 March 2027 | Effective due date for the December quarter BAS, since 28 February is a Sunday |
Remember that the GST in December sales is not yours, and the stock bought on credit is not yet paid for. A big December can produce a big BAS in the same quarter that supplier invoices fall due, a pattern covered in our wider guide on Christmas and end-of-year cash flow.
Can I still import stock?
If you are thinking about ordering from overseas, check lead times honestly. Production, packing, shipping, customs clearance and delivery to your door typically take weeks, and those weeks are tight at this time of year because everyone is trying to ship at once. If stock arrives after 15 December, you may miss the peak and be left with it for January.
Realistic options in late October:
- Local distributors and wholesalers who hold stock in Australia.
- Air freight for small, high-margin lines, if the freight cost still leaves a margin.
- Reorders from suppliers you already use with delivery dates confirmed in writing.
- Selling more of what you already have, with better display, bundles and gift packaging.
Imported goods may also need finance for the gap between paying the supplier and selling the product, which is covered in our guide on trade finance.
How do retailers pay for the stock?
Start with the cheapest money and work outwards.
- Supplier terms. Ask for 30, 45 or 60-day terms, or dating that pushes payment into January. It costs nothing if your supplier agrees. Negotiating better supplier terms explains how.
- Your own cash. Only the amount you can spare after wages, rent and the BAS.
- A business line of credit or overdraft. Flexible and repaid from sales. Best arranged before you need it.
- Stock finance. Funding advanced against inventory or purchase orders, repaid as stock sells.
- A short-term loan. A fixed amount over a few months, suited to a specific purchase.
- A credit card. Convenient for small orders if you clear it, risky for large ones.
Banks are often the best first call. A retailer with a clean history and steady sales may be offered a seasonal increase in an existing limit at a modest cost, and that is worth taking seriously. If the bank cannot move in time, or says no, other lenders can decide quickly on recent bank statements and sales. Our page on seasonal stock funding compares options.
Want to know what you could access before you place the order? Share the size of the buy and we can talk through what might fit.
What should I watch with stock finance and short loans?
- Total cost in dollars. Ask for the full amount repayable, including fees, and compare it to the profit on the stock.
- Repayment timing. Repayments that start in December, when cash is thin, can hurt. Ask for a structure that starts in January where possible.
- Security. Some products take security over the stock, others over the business or property.
- Early repayment. If you sell through quickly, can you repay early without a penalty?
- Gift cards. Do not treat December gift card sales as cash you can spend. They are a liability until redeemed.
A worked example: a homewares retailer
This is an invented example. A homewares shop in a regional centre turns over about $1.4m a year, with 35 per cent of sales between 1 November and 24 December. Last December it sold around $320k. The owner expects $340k this year and a gross margin of about 52 per cent.
The stock needed to sell $340k is roughly $163k at cost. The shop already has $48k of suitable stock, so the gap is about $115k. The owner orders $95k now on 45-day terms, holding $20k back for reorders. Supplier terms cover the first $70k, with the remainder funded by a $60k seasonal increase to the overdraft arranged in late October.
By 5 December, two ranges are selling faster than expected, and $14k is spent on reorders. The overdraft peaks at about $38k, clears by the end of January and is cancelled in March. A markdown plan was set in advance for 27 December, with a floor of 30 per cent off, so cash was returning by early January.
Mistakes to avoid
- Ordering for the best-case Christmas.
- Putting stock on terms that fall due before the cash from sales arrives.
- Forgetting the quarter’s BAS when planning January.
- Over-committing to one supplier’s minimum order.
- Waiting until mid-December to ask the bank, when advisers are on leave.
Still short for the season?
If your numbers show a gap and the order has to go in this week, it is better to ask now than to wait. Funding arranged in late October can still be in place before the busiest stretch.
Our enquiry form takes about a minute, and asking does not touch your credit file. We do not pass your details around a panel of lenders; a real person reads your situation and rings you. Please be accurate about your sales pattern, the stock you need and the date you need it, so the right option is suggested first time.
Frequently asked questions
How much Christmas stock should a retailer order?
Start from last year's sales by week and category, adjust for trend, and order to the quantity you expect to sell at full price. Hold some budget back for reorders on fast sellers. Keep the order inside what you could repay from sales if the season runs 20 per cent below plan.
Is it too late to import stock for Christmas?
For most overseas orders, yes. Production, shipping, customs and delivery to the shelf can take many weeks. In late October, air freight, local distributors or a smaller range from stock already in the country are more realistic. Check delivery dates with the supplier in writing before you commit.
What is stock finance?
Funding secured over inventory or advanced against purchase orders, often repaid as the stock sells. Some products fund the supplier directly, others advance cash against stock. Costs and fees vary, so compare the total dollars payable against the profit the stock is expected to produce.
Should I use a business credit card for stock?
It works for small orders, and the interest-free period can help if you can clear the balance. For larger orders, the limit may be too small and costs can rise if the balance rolls over. A line of credit or supplier terms generally suit bigger, planned stock buys.
How do I fund stock if a bank declined me?
Non-bank lenders can fund stock using bank statements and sales history, sometimes within days. Costs are usually higher than a bank's, so keep the term short and make sure the margin on the stock covers the cost. Ask for the total repayable in dollars, not just a headline figure.
What happens to unsold stock after Christmas?
It becomes a cash flow problem if you still owe money on it. Plan for a January sale, set the markdown level in advance, and avoid ordering lines you could not sell at a discount. Some retailers negotiate return rights or sale-or-return terms for risky ranges.