Ecommerce Businesses: The Future is Now
It’s estimated that the global digital buyers market is roughly 2.14 billion, accounting for nearly eighteen percent of all retail sales around the world. If you run an eCommerce business, you’ll need to keep your inventory stocked, marketing initiatives sharp, and your operation afloat with various costs. In the online business world, you need money to make money — but what if you’re short on cash flow and working capital?
That’s where financing options from AdvancePoint Capital can help give your company the business funding it needs to purchase what you need and pay it off with your overall profits.
What’s Affecting Your Ecommerce Business?
What to Lookout For:
This is a problem for most small businesses, not just those swimming in the eCommerce pool. In order to keep up with demand, purchase inventory, grow, and thrive — you’ll need enough cash reserves to get the job done.
Ignoring Marketing Costs
Your online business lives and dies by its marketing initiatives. Unfortunately, marketing spend is often swept under the rug when cash reserves run short. That’s where business funding can help open doors and ensure that your eCommerce business is reaching the right customers.
A Competitive Marketplace
While the online industry model has opened more doors than ever before, it’s also heightened the competition. To keep up with competitors, you’ll need access to a loan amount that works for your business, and not against it.
Day-to-Day: Time is Money
Running eCommerce businesses is more than just putting up an online shop and pressing publish. It requires a tactful approach to balancing day-to-day operations, inventory management, market planning, and beyond.
How Your eCommerce Business Can Benefit from Business Loans
Why Do You Need Business Funding?
If you live and breathe eCommerce, you’ll need every advantage possible to outlive and outgrow your competitors. eCommerce businesses come in all shapes and sizes, reaching nearly every industry around the globe. That means there are a ton of factors that could influence why you need business financing for your operation. Here are some of the more common reasons why you need business loans for your eCommerce company.
Cash is king. There’s no getting around that. eCommerce businesses have a wide range of moving parts and there are several factors that can impact cash flow. Your business may be seasonal, require expensive equipment, have massive marketing spend, or require maintenance for optimal performance. Whatever it may be, you’ll need business loans from a trusted online lender like AdvancePoint Capital to keep the operation afloat.
An online business relies on secure software, inventory management, and various other factors that can all go horribly wrong at the most unexpected time. In the eCommerce world, having your shop go down can mean thousands of dollars in revenue lost. Having a credit facility by your side can give you peace of mind that when emergencies occur, you’re ready to keep moving forward.
Your inventory is your lifeblood. Having a fully stocked inventory means being prepared for sales and growth. However, there are times when cash is short and you don’t know where to turn. Through inventory financing, you can collateralize your inventory for instant cash on hand that you can use for a wide range of business purposes.
The 6 Best eCommerce Business Loan Opportunities
Short-Term Business Loans
Short-term business loans have a repayment length of roughly 6 to 18 months. It features a factor rate with no principal or interest, it’s a popular option for small businesses and eCommerce businesses alike. If you’re having trouble finding funding through traditional options such as banks due to credit or documentation requirements, a short-term loan is a great way to get the capital you need for working capital and beyond.
Rates: Factor rates ranging from 1.09% up to 1.45%
Terms: 6 to 18 months in duration (typically 12 months or less)
Fees: Origination Fees 0% to 5%
Payments: Weekly, Bi-Weekly and in some cases daily Monday-Friday
Credit Score Standards: All credit types considered
Processing Times: Same day to 24 to 48 hours
Long-Term Business Loans
If you’re looking for a term loan solution with longer repayment periods and a greater loan amount, long-term business loans are what you need. With a repayment period of 2 years or more, you’ll get access to more capital with affordable monthly payments. If you’re thinking big picture and need to fund your online business for growth, a long-term loan for business is the perfect way to get the loan amount you need.
Rates: Interest rates starting Treasury index plus 1% to 2.5% (currently 5.5%)
Terms: 2 to 10 years
Fees: Origination Fees 0% to 3%
Payments: Monthly or Bi-Weekly payments
Credit Score Standards: Good credit to excellent credit preferred
Processing Times: 3 days to a couple of weeks depending on Lender
The Small Business Administration (SBA) provides a wide range of loan opportunities for eCommerce companies. An SBA loan offers low rates and longer repayment periods, making it an attractive option for many eCommerce business owners. While not the lender, the SBA offers guarantees, guidelines, and programs to approved lenders that can offer an SBA loan to your business. With that being said, these can be difficult to obtain due to rigid guidelines, strict credit requirements, and significant documentation for approval. So, if your business has been doing great and your credit is up to par — take advantage of their many loans and financing opportunities with the help of AdvancePoint Capital today.
Rates: Starting at Treasury index plus 1% to 2.5%
Terms: 3 to 25 years
Fees: Origination fees range from 0% to 3%
Payments: Fixed monthly payments
Credit Score Standards: Good to excellent credit preferred, but all credit considered
Documentation: Full Documentation. Application, 6 months business bank statements, two years of business tax returns, year to date Profit & Loss, and Balance Sheet. More documents may be requested upon review
Processing Time: It can take one week up to a month depending on application volumes, SBA product selection, or other economic conditions
Business Line of Credit
If you need a flexible and revolving solution for cash flow, a business line of credit is a great route. You can draw funds whenever you need or make purchases up to an agreed-upon credit limit and only pay interest on what you draw. Give your eCommerce business a flexible funding system to thrive in the online marketplace and only pay interest on what you draw through a business line of credit today.
Rates: Principal & Interest Rates start at treasury index plus 1% to 2.5%
Terms: Open revolving line of credit
Fees: Origination Fees 0% to 3%
Payments: Monthly, Bi-Weekly or Weekly payments
Credit Score Standards: Good credit to Excellent credit preferred.
Processing Times: Same day to up to a week depending on the lender
Business Cash Advance
While technically not a loan, a business cash advance allows you to leverage future sales for instant cash flow. Your eCommerce business can offer up a fixed percentage of overall sales for fast access to capital. This is a great option for eCommerce businesses that lack creditworthiness but need cash now. Discover how you can take advantage of this flexible alternative to business loans today.
Rates: Factor rates from 1.09% up to 1.45%
Terms: No term limits. Payments continue until paid in full based on specified percentage collection method and are dependent on future sales
Fees: Origination Fees that range 0% to 5%
Payments: Weekly or daily Monday-Friday Fixed ACH payments
Credit Score Standards: Poor to Excellent credit accepted. All credit considered.
Processing Time: Same Day to 24 to 48 hours
Merchant Cash Advance
A merchant cash advance is very similar to a business cash advance, with one distinct difference. Instead of leveraging overall sales, it specifically takes a percentage of your daily credit card sales for access to instant cash on hand. This is another great solution for eCommerce companies that lack stellar credit or time in business, as the requirement for approval are more lenient and accessible.
Rates: Factor Rates 1.09% up to 1.45% or Interest Rates 4.5%-28%
Terms: 2 to 10 years
Fees: Origination fees range from 0% to 3%
Payments: Monthly fixed payments
Credit Score Standards: Good to excellent required.
Time Frames: Instant financing, Same Day up to 3 days depending on the lender
The fast, convenient and straightforward way to get the money you need for your eCommerce business – now!
Get Your Quote Today by filling out our simple form.
Advice, Tips, Warning’s about Business Financing for eCommerce Companies
Your eCommerce company funding journey should start with a few simple questions. What will I use the money for and how can it benefit my business? Which financing options put me in a position to succeed and what can I realistically pay back? What possible hurdles or challenges may come with getting approved?
Take your time during the research phase and make sure that you’ve sufficiently answered all of the questions above. Take into consideration a cost vs. benefit analysis to decide which funding opportunity works best for your eCommerce company.
Here at AdvancePoint Capital, we give business owners the tools, resources, and financing options they need to manage day-to-day operations, grow, and succeed. Don’t waste time and money fiddling with lenders or banks that you won’t get approved for. Shop, compare and achieve your goals by working with AdvancePoint Capital today.
Why Choose AdvancePoint Capital?
- Experience – We’ve worked with eCommerce companies for years
- Trust – Extraordinary reviews and feedback from eCommerce companies
- Loan Specialists – We’re professionals in the eCommerce financing marketplace
- No cost, no commitment quotes
- Products – We offer a wide range of eCommerce loan products and funding opportunities
How to Apply for eCommerce Funding
Getting a loan or financing solution from AdvancePoint Capital is a fast and easy process. All you need to do is fill out our simple online form, application page, and in just a few hours — you’re well on your way to getting your eCommerce company approved today. Don’t wait for your competition to get the advantage, take control of your financing future with the help of AdvancePoint Capital today.