Are you an entrepreneur looking to take your ecommerce business to the next level but need help to secure the funding required for your growth?
You're not alone.
According to statistics, online businesses only have a 10-20% chance of succeeding.
Actually, just 10% of online businesses make it, and most of those that do fail do so within the first 120 days.
There are a lot of financial challenges that ecommerce businesses confront that might be tough to overcome without a business loan, including a lack of cash flow and investments.
Fortunately, there are many ecommerce loans available that can provide the funding you require to grow and expand your business.
Moreover, these loans offer flexible terms, low-interest rates, and quick approval processes.
Still, with so many options, scrolling through the Internet to find the best ecommerce loans suitable just for you can take time and effort.
That's why we compiled a list of best ecommerce loans that can help you expand your product line, invest in marketing, or improve your website and give your ecommerce business a real boost.
So if you're ready to learn more about this topic, let's dive right in!
There are various ways to use your ecommerce loan:
You should know how much money you need and how you intend to use it before committing to any funding option, including ecommerce loans.
Keep in mind that plenty of ecommerce loans are available, so there is sure to be one that will fit all your needs.
Now, let's see the best ecommerce loan options available.
Myos is a trustworthy growth partner for various ecommerce businesses.
Let's say you want to increase your sales and profits by placing more orders for goods, putting out new products, or spending money on marketing.
Myos offers asset-based working capital finance under fair conditions:
✔️ You don't have to provide a personal guarantee to get a loan, so there is no financial risk.
Myos only uses the value of your products as collateral.
✔️ You have complete control over when and how you repay the loan, whether through the sale of the financed products or another method.
✔️ If you cannot repay the loan, Myos will sell the collateralized products to cover the debt.
✔️ Also, your supplier and Myos will never interact directly, keeping your competitive edge safe.
Myos uses artificial intelligence to look at the data about your product, such as the price history, the competition, how visible it is, and other relevant information.
Based on this analysis, the AI determines the amount of money you can borrow and the interest rate.
The financing volume is not reliant on the selling price, so it might be lower or higher.
Moreover, you can change the return terms within the first twenty-four months. Suppose you decide after one week that you don't need the money anymore.
In that case, you can pay it back and complete the project without any additional financial burden.
Business types that are eligible to apply:
✔️ A registered office in Germany, Austria, Estonia, Cyprus, or the United Kingdom
✔️ You have been operating for at least 6 months.
✔️ You have been selling online for at least 50 days (e.g., on Amazon, eBay, an online shop, etc.).
✔️ You have products with a shelf life of at least a year.
You run a home decor business, and you want to place a bulk order with your manufacturer for more than €100,000 because Easter is drawing closer.
Since it is a busy season, you anticipate high customer demand.
But, unfortunately, it's easy for two months to go by in which the money you've paid to the manufacturer does not result in a profit for your business.
It is because of the time it takes for production and the products to arrive in your inventory.
First, you contact the supplier and make the order.
Then, we'll handle the initial and final payments and ship your purchase to whoever manages your warehouse operations.
After that, Myos will give you an unrestricted quantity of products to sell immediately.
Consequently, paying back a portion of the financing cost will release further inventory for resale after you repay the total amount.
With the help of Myos, you can speed up your company's expansion and get ready for your busiest time of year.
Best for: Ecommerce, SaaS, small and medium businesses
Location: Europe, UK
Loan amount: €10.000-2.500.000
Type of financing: Revenue-based
Lemonero is an AI-powered digital lending platform designed specifically for online and omnichannel retailers.
Adding this platform to your system makes it easier to multiply and get new customers independently, thanks to the platform's flexible revenue-based funding options.
Lemonero offers a revenue-based payment model for small and medium-sized merchants, funding up to 80% of merchants' applications.
It also offers data insights that you can use to forecast cash flow and track the status of your finances.
Best for: Ecommerce, marketplaces, and payment service providers for inventory purchase or marketing investment
Loan amount: €1.000 to €500.000
Type of financing: Revenue-based, embedded lending
The business loan from Capify is a fantastic way to get funding for your business.
Most of the recipients of these loans are small business owners who put the money toward major purchases like machinery or supplies or the salaries of new employees.
The money is yours to invest however you see fit to expand your company.
Once your loan is accepted, you are free to put the funds toward your company's needs, be it paying down existing debt or investing in new equipment.
For the sake of your cash flow, you can pay back your ecommerce loan in smaller payments instead of one significant amount every month.
You can get a loan for a short, medium, or long time.
Short-term loans often last for 6 months, medium-term loans typically last for 18 months, and long-term loans generally last for 3-5 years.
If you wish to get an ecommerce loan from Capify, you need to meet the following criteria:
Best for: Ecommerce, wholesale, manufacturing, IT services, retailers, etc.
Location: Europe, UK
Loan amount: £5,000 – £500,000
Type of financing: Small business loan, merchant cash advance
Bluevine provides access to credit lines of up to $250,000 with competitive APRs and no fees or penalties for paying them off early.
Bluevine's line of credit can be a good option for online store owners who don't want to fill out new credit applications whenever they need money, such as when funding for new products drops.
Lines of credit from Bluevine can be anywhere from $5,000 to $250,000, and interest rates start as low as 4.8%.
In addition, Bluevine allows you to take out loans as needed, with payments spread out over 6 or 12 months at a set monthly or weekly rate.
As a result, you can borrow more money at once for a lower interest rate than you would with a corporate credit card.
Still, remember that Bluevine requires a personal credit score of at least 625, 24 months of business history, and $40,000 in monthly income before extending loans.
Making payments on time builds business credit, which is beneficial for getting more loans in the future.
Best for: Business owners with excellent credit who require constant cash flow
Loan amount: $5,000-$250,000
Type of financing: Line of credit
The concept of Payability is based on the fact that it may take several weeks or months for a vendor to obtain payment from an ecommerce platform.
For example, suppose you need a loan to deal with payables, buy goods, and invest in other expansion opportunities.
In that case, you can choose between different options:
With Instant Access funding, you can get a daily advance of 80% of your previous day's earnings into your Payability account.
After you get the marketplace payout, you will receive the remaining 20%.
To apply for Quick Access, you must have at least $10,000 in monthly sales and 3 months of selling experience. In addition, It charges a 2% commission on gross sales.
However, sellers who earn more than $100,000 per month may qualify for reduced fees.
This type of funding operates by purchasing future receivables. Typically, you'll receive 75%-150% of a single month's marketplace sales earnings.
You'll pay Payability a defined percentage of your sales as you sell (typically between 12% and 25%) until the total amount of the bought receivables is received.
To qualify for Immediate Advance, you must have at least $50,000 in average monthly sales and 9 months of sales history. It typically charges 0.5% to 1% every week.
You can use the Advance Line if you require additional funds. You can easily withdraw money from your account. It asks you to pay a fee only on the amount drawn, not on maintenance, application, or unused capital.
Additionally, you will know if you are eligible based on the financing package for which you apply.
You must make at least $500,000 annually to be eligible for Advance Line. You can repay Advance Line with a fixed percentage of sales (not a fixed rate on the available amount).
It means you'll pay more when you have more sales and less when you don't.
Lastly, the costs vary depending on which funding option you apply for.
Best for: Ecommerce businesses on Amazon, Shopify, Walmart, or Newegg.
Loan amount: Funding amounts are based on your monthly Ecommerce revenue.
Type of financing: Asset-based and merchant cash
Uncapped has created a financing option tailored to the needs of online retailers.
You can choose fixed-term or revenue-based financing, which helps shield you from unaffordable payments.
Uncapped offers business loans between €10,000 and €10 million, which you can use for expanding your ecommerce business.
As an alternative to charging interest, the lender may charge a flat fee of 2% to 12% of the loan amount.
Of course, there are no hidden fees, such as those for loan origination or prepayment.
You can pay back the loan in fixed monthly payments over 3-24 months, or you can pay back the loan based on a percentage of your monthly sales (between 5-25%) until you repay the principal and charge fees.
No minimum credit score is required, but you should have been in operation for at least 6 months and make €100,000 or more monthly to qualify.
Best for: Ecommerce, SaaS, direct-to-consumer, gaming, and app development sectors. Sole traders are not eligible.
Loan amount: €10,000-€10 million
Type of financing: Revenue-based financing
Ecommerce entrepreneurs who need funding to start or expand their business can choose from several online solutions.
In addition, financing timelines are often faster than those of regular banks, and eligibility standards are less stringent.
If you need financing urgently, apply with one of the above lenders so you can go back to running your business.
But, to make your decision even easier, here are the best ecommerce loans summed up:
💡Lemonero focuses on ecommerce businesses that need fast and secure loans for inventory purchases or marketing boosts.
💡Capify is an excellent choice for businesses that need to cover multiple costs without justifying their reasons.
💡Bluevine is great for small business owners who need constant cash flow.
💡Similarly, Payability is another option for US-based online sellers focusing on platforms like Walmart, Shopify, and Amazon.
💡Uncapped is a way to go for Europe-based retailers that don't have a strong credit history.
💡Myos offers numerous benefits for small business owners that need to grow their businesses.
With asset-based financing, you can get a loan without annuities and a flexible repayment.
There is no monthly schedule – you pay back to release a portion of your collateralized inventory whenever you need it and can choose how much you want to pay.
So, sign up with Myos today and let your business bloom!
There are numerous options available to you if you want to fund an ecommerce business.
Depending on the needs of your online business, you can get business loans from banks or private lenders, get invoice financing, or apply for government business grants.
There are several reasons why ecommerce businesses fail, including weak product demand, ineffective marketing strategy, insufficient resources, weak business model, inventory management problems, etc.
You can start an ecommerce business with no money or for as little as $100 by acquiring a membership and a theme for your store. Ecommerce businesses are less expensive than brick-and-mortar stores since they do not require as many licenses and permits, and you do not have to pay rent for a retail space.