Consumers paid more overdraft fees in 2012

Any time consumers see higher expenses, it could take away from the money spent at retailers, which occurred last year when more overdraft fees were paid. 

Should this lead to less consumer spending in 2013, small- to medium-sized retailers could take a hit. With fewer sales, these companies might see cash flow take a hit and have less available capital, which could make it difficult to obtain a loan from a bank. 

When turned away from one of these financial institutions, retailers might feel as though they are out of options, but that is not the case, as they could qualify for inventory financing

According to the latest study on overdrafts by Moebs Services, these fees made a strong comeback in 2012. For the fiscal year ending December 31, 2012, overdraft revenue jumped 1.3 percent from $31.6 billion to $32 billion. Between April and December of last year, overdraft transactions increased 4.4 percent, which could be leaving less money in peoples' bank accounts. 

"Despite regulation and legislation, such as 2008's Truth in Savings revision, 2010's Reg E opt-in requirements, and the 2011 overdraft guidelines issued by the FDIC, consumers' use of overdrafts shows no indication of going away, and is actually increasing," said Michael Moebs author of the Overdraft Study.

If small- to medium-sized retailers begin to see the affects of higher consumer overdraft costs, they could take advantage of inventory financing for lending if a bank tells them "No."

When a business is going through a time where cash flow may not be as high as usual, this type of asset-based lending can provide a revolving line of credit, which can be used to keep their shelves stocked and to take advantage of opportunities for growth.