Running an ecommerce business can be incredibly rewarding. Still, it can also come with its fair share of challenges, the biggest being managing cash flow.
It's not uncommon for ecommerce businesses to experience cash flow problems, especially during their early stages of growth.
In addition, keeping up with expenses like inventory, marketing, and personnel costs can be difficult without a steady stream of revenue.
That's where cash flow loans can come in handy.
This post will review some of the best cash flow loans available to help you overcome these challenges.
Let’s start!
A cash flow loan is a form of unsecured lending designed to finance the daily operations of a small business.
You can use it to fund working capital expenses such as payroll, inventory, rent, and other costs, and you have to repay it using the incoming cash flows of the business.
Several types of business loans can help with cash flow, including:
Let's take a look at some of the most beneficial cash flow loans available in 2023.
Myos offers ecommerce businesses from €10.000 to 2.500.000 to invest in inventory, marketing, launching new products, hiring new staff, or covering other vital expenses.
If you're seeking a business cash flow loan, conventional lenders like banks may demand proof of a strong cash flow, which may not always be feasible.
Fortunately, Myos offers uncomplicated cash flow financing options with no obligations.
The application process takes less than 5 minutes, and you will get a prompt answer within 24 hours.
With adaptable repayment periods that extend up to 24 months and no penalties for early settlement, the benefits of Myos' business cash flow loans are apparent.
Depending on your specific needs, you can choose between two available financing options:
1. Inventory financing enables you to finance future orders with your manufacturer, and Myos handles the deposit and balance payments.
2. Stock financing employs your existing inventory as collateral to promote store growth.
Myos offers working capital through an asset-based finance model.
What does it mean?
💡 There is no need for credit history checks because it's understandable that some online businesses may not have a good sales history to prove their creditworthiness.
✅ Instead, Myos utilizes readily accessible data about your store, like the quantity and cost of products sold, to make forecasts about the future success of specific products and specify the amount of funding accordingly.
💡 Myos does not require personal guarantees, like those for a house or car.
✅ Instead of requiring traditional collateral, Myos uses the stock you have on hand as security for the loan.
💡 In addition, the agreement with your warehouse ensures that a portion of your existing and future stock is protected, keeping your personal assets separate from your business operations.
HomeHarmony requested a stock finance program from Myos, requiring them to use their warehouse stock as collateral.
Myos approved a loan of €200,000 with a monthly interest fee of 2% and made payments directly to HomeHarmony's account.
The project lasted for 10 months.
HomeHarmony began selling their items a month after the financing began and decided to initiate repayments three months after the contract started.
By the fourth month, they had paid back 20% of the loan, which allowed Myos to release 20% of their inventory for sale.
HomeHarmony repaid an additional 40% in the sixth month, finally settling the remaining 40% in the tenth month, effectively concluding the project.
This business was able to meet the rising demand for its products thanks to the additional working capital that Myos provided, which sparked the expansion and success of the company.
Here are the funding requirements you should meet:
Novuna provides various financing options for businesses, such as asset, invoice, and franchise finance.
These financing options can help small and medium-sized enterprises (SMEs) to purchase equipment and software or expand their franchise. Novuna offers funding up to £500,000 to help businesses at different stages of growth.
Applying for financing from Novuna is straightforward. After a quick online application process, you will receive a decision within minutes.
To apply, visit the Novuna website and fill out the online application form, providing personal and business details.
You may need to provide additional information before you receive a decision.
When applying for financing, you need to meet the following requirements:
Novuna offers support for businesses at various stages of growth, whether they are starting up, growing, or already established.
Booste offers financing solutions to ecommerce businesses registered in the UK, Ireland, the Netherlands, Poland, and Spain.
Eligible businesses can access up to £1,000,000 in funding for various purposes, such as investing in intensive marketing activities to increase online visibility, prepare for seasonal sales spikes, and compete with more prominent brands.
There are no monthly payments, just a fixed fee starting from 3% for a loan with repayment terms of up to 18 months.
Additionally, no other fees, impact on creditworthiness, or personal guarantee are required.
Obtaining financing from Booste is a quick process you can complete in as little as one day. With Booste's financial support, you can free up time and resources, allowing you to focus on how to use the additional funds to grow your business.
In addition, these financing solutions provide flexibility in managing daily tasks and enable ecommerce businesses to boost their financial liquidity.
To be eligible for financing, ensure that you fulfill the following criteria:
Mollie, a payment service provider based in the Netherlands, has launched a capital division that offers a financing solution for small and medium-sized businesses (SMBs) to obtain funding quickly.
Mollie Capital is an integrated financing service that offers cash advances up to €250,000 ($240,500) to eligible SMB customers based on your Mollie transaction volumes.
It presents an appealing alternative to conventional financing that enables Mollie customers to unleash their growth potential.
Further, it streamlines the funding process and saves time. The entire process is managed on the same platform where you receive your revenue, which enhances efficiency.
The process goes through the Mollie dashboard, and approved loans are typically available on the same day. Repayments and a one-time fixed fee are automatically deducted as a percentage of daily sales.
Molly Capital is only available to those who have used this platform for at least 3 months to receive payments.
Lemonero is a digital lending platform that utilizes AI technology to provide revenue-based financing to small and medium-sized ecommerce merchants.
You can get funding ranging from €1k to €500k and automatically repay it with a fixed percentage of daily sales (10-20%).
Partnering with Lemonero can benefit businesses in various ways, including:
The process involves a simple application that takes less than 10 minutes.
First, connect your store with Lemonero for AI scoring and evaluation, upload commonly available documents, and choose an offer.
Once you sign the online contract, you will receive the money within 24 hours.
It depends on your revenue and the overall health of your business.
Cash flow management is a common challenge that almost every entrepreneur faces at some point in their business life.
Whether it's due to external factors such as economic pressure or industry-specific cyclical sales, extended periods of negative cash flow can pose a significant threat to the survival of a business.
Unexpected cash flow challenges can force you to think creatively and find solutions that don't disrupt your operations.
While some may resort to budget cuts or short-term initiatives that sacrifice profitability, these options can only go so far before they erode the business's integrity.
Small business cash flow loans can provide a more sustainable solution.
With these loans, you can access funds to manage cash flow and maintain operations without sacrificing long-term viability.
What Makes Myos Financing Ideal For Your Business?
So, why not take advantage of Myos financing options, and position your business for future growth and success?
Sign up with Myos and elevate your business today!
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