As an eCommerce (online sales of physical products, aka “eTail” or “internet retailers”) business owner, you are somewhat unique to your brick & mortar counterparts in that by the very nature of your business model, you are generally more savvy with technology and digital marketing.
The downside as it applies to funding is that traditional/local banks tend to turn down digital-based business owners because they don’t understand your business model, and the confused mind usually defaults to “no.” Additionally, retail banks prefer lending to businesses with valuable physical collateral, something eComm companies don’t usually possess.
In our experience, eCommerce business owners are most entrepreneurial than offline proprietors in the sense that you are more oriented toward:
- Paid Advertising (because organic/foot traffic and word-of-mouth is much less likely)
- Growth/Scaling (because digital is more scalable than analog)
- Systems and Processes (automation and delegation through technology)
- Business Skills Mastery (beyond technical knowledge related to your products)
- Marketing and Sales Funnel Architecture (optimizing customer lifetime value through backend monetization)
- Leadership (team-building and culture development above micro-management)
All that said, many eCommerce entrepreneurs (perhaps including you) are uniquely qualified to make profitable use of outside capital and multiply it for exponentially higher revenues, profits, and cash flow.
However, even the most talented and successful entrepreneurs run into cash flow challenges and other bottlenecks that require an infusion of outside capital, whether in the form of private equity (angel or VC investors) or debt (loans and lines of credit) — the latter being much more feasible.
But beyond any unforeseen and unfortunate challenges and “emergencies” in which outside capital is necessary and useful, you likely often encounter frequent growth opportunities that require more cash than you currently have in the bank. This is where a lack of working capital feels like oxygen deprivation, resulting in “commercial suffocation” that paralyzes growth.
COST VS. ACCESS
The opportunity “cost” of missing out on these endeavors is usually much higher than the actual cost of the capital. For the entrepreneurial, growth-oriented business owner, access to capital is more important than the cost because you have the skills, resources, and opportunities to multiply $1 of outside capital into $3, $5, or even $10 and beyond.
As the saying goes, “It’s better to have it and not need it, than to need it and not have it,” or “Dig your well before you’re thirsty.” You get the idea.
Our private lenders love eCommerce businesses, so we’re here for you whenever you need more money to grow or manage your business.
Funding amounts from $20,000 to $10 million (depending on revenues, credit, and other qualifications)
- United States
Common Loan Types For eComm:
- Term Loans
- Lines of Credit
- Revenue-based Loans
- Business Credit
Common Uses of Funding For eComm:
- Increase ad spend
- Staffing and training
- Inventory stock-up
- Technology enhancements
- Research & development