We’ve all heard the saying, “You have to spend money to make money,” and this certainly applies to growing your business. In order to expand, you need to invest, but in order to invest, you need working capital. If you’re looking to take your business to the next level, it may be time to start considering your funding options.
That being said, financing your business is not a one-size-fits-all approach. There are many factors that come into play when deciding the funding option that’s right for you. For starters, how much money do you need? How soon do you need it? Is it from a trustworthy lender? And that’s just the tip of the iceberg.
Then there comes the process of applying for a loan. Don’t be discouraged if your local bank won’t extend credit. This is not a reflection on your business potential or ability to grow. Traditional bank requirements are simply not catered to small businesses.
The good news is the landscape of the lending industry is expanding with new lenders that understand the digital business model. By leveraging technology to determine eligibility and using a new algorithm to assess credit, many online lenders will approve loans that may not have met bank standards.
With the Amazon marketplace becoming more and more competitive, external financing will help set you apart from the competition. There are many funding options available for Amazon sellers, so it’s important to choose the one that fits your needs.
- Term Loan
Let’s say you’re launching a new product that you’re excited about, but it isn’t flying off the shelves just yet. Term loans are customized to fit your businesses needs, and in this case, a long-term payment structure would enable you to finance your inventory and make payments comfortably. It will also give you the time you need for the product to take off.
Using our data model, we can fund with a better fit - and do it faster. If you’re interested in applying, click here.
- Revenue Advance
As your business grows, it’s important that you have the resources to keep up with customer demand. That means keeping your inventory stocked. Running out of products will end up costing you (in more ways than one) down the line.
Revenue-based financing allows you to make payments in line with your monthly revenue. Rather than having to pay a fixed amount month to month, you pay a percentage of your profit until the loan is paid off.
This is a great option for small and growing businesses, or companies that experience seasonal fluctuation in sales.
Why not leverage your Amazon store performance to get qualified for funding? Complete this form and take the first step to meet your cashflow needs. If you qualify, you can have up to 90 days of grace period before starting repayment.
- The Amazon Lending Program
Staying on top of selling trends and launching new products is vital to the success of any Amazon seller. The problem is that many sellers have to wait to launch new products due to lack of funds. Having the finances to launch products when you want gives you a major competitive edge.
Similar to a revenue-based financing, a loan from Amazon Lending is a cash advance that you repay through your Amazon sales in fixed monthly repayments.
However, it’s important to note you have to be invited to apply. Sellers who typically qualify have high customer service ratings, a profitable sales history, and consistent inventory restocking.
Also, Amazon Lending offers short-term loans, and repayment periods do not extend beyond 12 months.
This time of year is vital for seller performance in Q4 – to be successful you need to be planning now. That means finding a lender who will fund with the right product and get the cash in your hands within days, allowing you to focus on what’s most important: growing your business.