Quick answer
Christmas markets can be the biggest weeks of the year for stallholders and makers, but stock, materials, packaging and market fees must be paid in October and November. Christmas market stock funding bridges that gap. The trick is ordering enough to sell out without being left with a January pile, and sizing funding so it's repaid from December takings.
Key points
- Stock and materials are paid for weeks before the Christmas takings arrive.
- Use last year's sales, by product, to set this year's order.
- Plan for what happens to unsold stock in January.
- Short-term funding should be cleared by the new year.
- Main costs
- Stock, materials, packaging, market fees, casual help
- Unsecured (trading businesses)
- Typically $5k – $500k
- Q2 BAS due
- 28 February
For many stallholders and makers, Christmas markets are the main event. Night markets, twilight fairs, school Christmas stalls and the big design markets can turn a steady little business into a very busy one for six weeks. The catch is that all the stock has to be bought, made, labelled and packed before the first gift is sold.
Why is Christmas a cash-flow squeeze?
Because the money goes out in October and November and comes back in December:
| When | What happens |
|---|---|
| September to October | Book markets, pay fees, order stock and materials |
| October to November | Production, packaging, labels, displays |
| Late November to December | Market after market — the takings arrive |
| January | Quiet; unsold stock sits; January bills arrive |
| Late February | Quarterly BAS for October to December is due (28 February, per the ATO) |
The bigger your Christmas, the bigger the hole in October. Many stallholders limit their order to what they can afford in cash — and sell out by the second weekend.
How much stock should you order?
A few principles help:
- Use real data. Last year’s sales by product and by market beat any guess. That’s one reason to keep simple sales records — our market stall tax and records guide shows how.
- Back the proven sellers. Order your best-performing lines deeper.
- Test new lines lightly. A small batch tells you enough.
- Think about January. Can leftover stock sell online, at summer markets or next Christmas? Seasonal designs are riskier than evergreen ones.
- Allow for more markets. If you’ve added new markets this year, add stock, but not in a straight line — crowds differ.
Funding the stock
A stall with a solid trading record can usually look at unsecured or revolving limits of $5,000 to $500,000; the ceiling depends on what the business turns over. For a seasonal stock build, a short-term facility or line of credit usually suits best: draw it in October, repay it from December takings, and have it available again next year.
Want to stock up properly this year? See if you qualify — around a minute, and nobody pulls your credit for enquiring.
Makers: materials, time and help
If you make what you sell, your constraint is often time as much as money. Funding might go on:
- Materials and packaging, bought in bulk for a better price
- Equipment that speeds up production — a second kiln, a laser cutter, a bigger mixer
- Casual help for packing, labelling or running a second stall
Map it out with Part 2 of the truck-stop calculator. Treat each market as an “event”, enter the fee, your stock and prep cost and expected takings, and see where your balance dips.
Don’t forget GST and the February BAS
If your GST turnover reaches $75,000 or more, the ATO says you must register for GST within 21 days. Once registered, a big December means a big GST bill for the October to December quarter, due 28 February for quarterly lodgers. That lands when markets are quiet. Setting aside the GST portion of each sale as you go avoids a nasty surprise. See BAS time for mobile traders.
Illustrative example: the ceramicist’s December
A ceramicist sells at a monthly market and online. Last year she sold out at her first Christmas market and had nothing left for the next three. This year she’s booked five markets. She needs extra clay, glazes, packaging and a part-time helper from September. Mapping the season shows her account going below zero in November before recovering in mid-December. A small facility covers the gap and is cleared in January, and she avoids turning away customers at the busiest markets of the year. (Illustrative only.)
Pop-ups at Christmas
Some stallholders take a temporary shop for December. It’s a bigger commitment than a market stall, with a licence fee and fit-out on top of stock. See pop-up shop funding and market stall business loans.
What if the stock doesn’t sell?
Every stallholder has a box of Christmas stock in the shed somewhere. Plan for it before you order, not after:
- Choose evergreen designs where you can. A gift that works in June is less risky than one covered in reindeer.
- Set a January plan — an online sale, a New Year market, bundles, or storing it for next year if it keeps.
- Watch perishables closely. Food, plants and flowers need tighter ordering than homewares.
- Track sell-through by market. If one market consistently sells half of what another does, stock it accordingly next year.
Leftover stock isn’t just a storage problem. It’s cash that isn’t available for January fees, rent and the February BAS. Ordering a little less of the risky lines and a little more of the proven ones usually leaves you better off than ordering evenly across everything.
Card terminals and the Christmas rush
Christmas crowds want to tap and go. A second card terminal, a reliable mobile data connection and a spare charging bank can be the difference between a queue that moves and a queue that walks off. Card sales also leave a clean record for your BAS and any future funding application.
Stock up for your best season
Christmas should be your best few weeks, not your most stressful. Tell us how many markets you’ve booked, what you need to buy and how last year went. You can finish the form between customers, no credit check comes with it, and it lands with one real person — your details won’t be passed to a string of lenders.
Please fill it in accurately, including last year’s Christmas takings if you have them. It helps us find the right fit first time.
Frequently asked questions
How much stock should I buy for Christmas markets?
Start with last year's sales by product and market, then adjust for any new markets and trends you've noticed. Order your proven sellers with confidence and be more cautious with new lines.
Is it worth borrowing for Christmas stock?
If your stock reliably sells through in December and the funding is repaid from those takings, it can let you sell far more than your cash alone allows. Borrowing for stock that doesn't sell just moves the problem into January.
What if I'm a maker rather than a reseller?
Makers need to buy materials and packaging even earlier, and their time is a constraint. Funding might go on materials, equipment to speed up production or casual help.
When is the GST from Christmas sales due?
If you're registered for GST and lodge quarterly, the October to December quarter's BAS is due on 28 February, according to the ATO. Set the GST aside as you go.