E-Commerce or Internet Sales
Access flexible funding options to grow your e-commerce business, manage cash flow, and invest in inventory and marketing campaigns. Apply now to discover the best financing solutions for your online sales.
eCommerce Financing Options For Online Sellers & Retailer Websites
There’s a common misconception that eCommerce businesses sit comfortably at the top with nothing to worry about. With the rising popularity of eCommerce websites, it might seem like these businesses won’t have trouble attracting and serving customers. However, any eCommerce business owner will tell you that this couldn’t be further from the truth. The only things that have gotten easier are facing intense competition from big-box retailers like Amazon and managing their working capital.
The Barrier to Entry for Online Businesses is Getting Lower
eCommerce no longer has many entry barriers, allowing virtually any business owner or retailer to launch an eCommerce website and sell products. With Amazon’s massive goods catalog, the market has become highly saturated. Unless businesses manufacture their own products, they must regularly expand their selection with unique items to increase average order value.
Since eCommerce businesses exist entirely online, they must rely exclusively on digital marketing solutions to stay relevant. With so many digital marketing options available, eCommerce businesses must utilize every tool to generate quality traffic. Converting this traffic into profits is further aided by consumer finance products like Affirm, which help customers finance their purchases. The advent of consumer finance products has lifted another barrier to building a successful online business in the United States.
The Biggest Challenges are Cutting Costs & Obtaining Financing
Perhaps the biggest challenge for the eCommerce industry is cutting inventory costs. Profitability in eCommerce is directly tied to a company’s ability to purchase inventory quickly, allowing it to capitalize on bulk discounts and develop mutually-beneficial partnerships with vendors.
60Day Capital specializes in facilitating eCommerce financing options for retailer businesses generating internet-based revenue from customers using credit cards and PayPal as payment forms. Contact us today for your FREE eCommerce business funding consultation!
We Know All the Routes to Get the Best eCommerce Financing Options
eCommerce businesses primarily take payments from customers via debit and credit cards. This makes them ideal candidates for eCommerce financing. With a merchant cash advance, a lump sum is provided in exchange for a fixed percentage of future debit and credit card transactions. Repayments to the principal balance increase when sales volume rises since this type of financing is tied to sales volume.
Why Merchant Cash Advances are Ideal for eCommerce Financing
A merchant cash advance is especially suitable for eCommerce financing because good cash flow isn’t a strict requirement for approval. Funds can be distributed at almost any stage of your financial cycle, regardless of seasonal ups and downs.
Finding the Right Retail Finance Lender with the Lowest Interest Rates
Many 60Day Capital clients use eCommerce financing loans to fund inventory and marketing campaigns, which are typically long-term investments. Inventory discounts may be available when revenue is predictably down, and marketing campaigns need to be launched ahead of peak buying periods. Credit card processing loans (merchant cash advances) allow eCommerce companies to invest several months in advance and pay off the lender debt with increased revenue from promotions, expanded product selections, and higher order values.
Other Financing Options for eCommerce Businesses
Other small business loans and low-interest rate options include the Brex card or a business line of credit. The Brex card provides working capital to pay vendors upfront or ahead of due dates. Securing funding from eCommerce financing lenders and making timely payments can qualify you for discounts and benefits, ensuring quick access to new products throughout the year and better purchasing power over time.
Business lines of credit are suitable for short-term investments or last-minute inventory financing. If a product is selling well, you can order more and pay off the balance with the sale proceeds. These lines of credit can also help you navigate occasional financing hiccups, which are common in the volatile eCommerce industry.
Lower Credit Scores Shouldn’t Be a Barrier
We also facilitate eCommerce financing for business owners with low credit scores. Your consumers don’t care about your personal credit history, and it shouldn’t matter to lenders either if your customers love your products and services. Apply now to see how much you qualify for!
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