Unless you’ve been living under a rock for the past decade, you know that e-commerce is growing at a record pace. Online shopping has supplanted traditional brick-and-mortar shopping as the go-to option for consumers to get the products they want at affordable prices.
The convenience of major e-commerce players has spawned a slew of smaller businesses hoping to mimic the success, with more niche products and sectors that don’t directly compete with the various mega-players in the industry.
E-Commerce is projected to continue to grow at an increasing pace, and pose a disruptive threat to traditional retail in the coming years.
Loans for E-Commerce Businesses
Of course, the growing dominance of e-commerce businesses means a growing need for capital and funding. Like most sales-based businesses, the time between ordering products and receiving payment for sales of those same products can vary wildly based on the rate of sales, production lead time, inventory, and so on.
It’s not uncommon for 6 months or more to elapse between capital outlay for a piece of inventory and receipt of payment from an ultimate customer. This can mean a lot of capital is needed on a rolling basis, especially with seasonal businesses.
While some of the expenses are less dramatic than traditional retail (there are typically fewer employees, less property/lease/rent expense, fewer utility expenses, and so on), much of the needs of e-commerce businesses remain variable and significant.
Fortunately, BizFly Funding offers flexible lines of credit, low-cost merchant cash advances, and short term, unsecured loans to help e-commerce businesses to buy inventory, fund their operations, and achieve success.
Typical Uses for E-Commerce Sector Loans
Construction and landscaping are both fairly diverse industries, and there are numerous smaller categories of supporting businesses in related fields as well. Therefore, the specific uses of business financing funds may vary considerably from company to company, sub-sector to sub-sector.
Nevertheless, there are some common threads that run through most of these kinds of businesses. As our clients have reported, the following are three of the most common categories or types of uses that these business categories highlight for their loan and financing funds.
Some of the most common uses for loans and credit products for e-commerce businesses include:
In the churning sea of literally millions of e-commerce businesses, it can be hard to stand out from the crowd. The magic touch that makes some businesses successful and viral, while others fail, can be elusive and hard to manage.
Marketing definitely plays a large role, as visibility and traffic are the first step towards generating meaningful online sales. But marketing, especially in a fragmented and diverse market, can be an expensive proposition.
Borrowed funds from BizFly Funding can often be an ideal solution, enabling targeted marketing campaigns that will grow your user base and your sales.
Buying inventory to warehouse, and be able to sell and ship out to your customers, is not an optional aspect of running an e-commerce business. It’s absolutely an essential.
But it can be very costly, with no immediate return on that investment. Short term loans can provide ideal purchase order and inventory purchase funding for e-commerce businesses, without requiring collateral to be put up in exchange.
Protecting your assets while funding your business? That’s a total win.
In addition to inventory, the other major operational expenses for many e-commerce businesses relate to supplies.
Shipping boxes and related supplies, stamps and courier fees, packing bags and materials, labels, receipts, paper, and so on make up a big portion of what e-commerce fulfillment businesses deal with every day.
Affording all these supplies – which don’t in themselves generate sales – is a necessary evil in e-commerce businesses.
A flexible line of credit or merchant cash advance can help pay for supplies without requiring additional capital outlays from your primary credit or bank accounts.
Benefits of Choosing BizFly Funding for Your Loan
BizFly Funding exclusively deals in funding for small businesses. We work with businesses to select and deploy the best products to meet their needs – even if they have poor credit or a limited credit history.
We know that access to capital can make all the difference in whether or not your business succeeds, grows, and ultimately reaches its full potential.
We’re proud to partner with small businesses in the e-commerce sector, and hope you’ll consider BizFly Funding for all of your business financing needs. Ship it!