As an entrepreneur or small business owner, securing funding can be challenging.
Traditional bank loans often require collateral and have a lengthy application process.
In recent years, new types of financing have come on the scene, like revenue-based financing and ecommerce funding, which give businesses a way to get money without giving up equity or taking on debt.
Viably and Clearco (formerly Clearbanc) are two prominent players in this space.
Viably offers revenue-based financing to businesses, while Clearco provides non-dilutive funding to ecommerce companies.
Both platforms have gained popularity recently, but how do they compare?
In this post, we'll take a closer look at Viably vs Clearco, examining the pros and cons of each platform to help you make an informed decision about which one is right for your business.
Let’s begin!
Each company is unique and has characteristics that make it different.
Therefore, there cannot be a universal or standardized approach that you can apply to all businesses.
Regarding funding options for ecommerce businesses, there is no perfect option for all of them. Instead, the best funding arrangement is the one that suits the specific needs of a particular business most effectively.
To begin, let's briefly introduce these two financing platforms.
Viably is the banking option that can provide the capital and financial analysis that ecommerce business owners need to grow.
It is an all-in-one app that helps small company owners save time and gain financial clarity by centralizing banking, insights, and financial management.
It includes:
In addition to analyzing your financial situation, this financial technology company looks for ways to help you grow your small business.
With its funding, you can order more inventory, refinance expensive debt, create more marketing campaigns, or launch new products.
Viably offers funding options up to $250,000 with affordable fees and flexible settlement schedules.
Based in: Cary, North Carolina, United States.
Best for: Small businesses
Amount of funding: up to $250,000
Clearco offers a variety of loan packages to help online merchants in the United States acquire capital.
You can choose from various financing options, such as a line of credit, funds for advertising, and inventory funding.
The platform gives businesses instant funding for restocking, paying suppliers, advertising, and logistics.
Clearco will lend you up to $20 million, expecting you to repay the loan as you make money.
Based in: Toronto, Canada, with offices in Canada and the United States
Best for: Ecommerce, mobile apps, and SaaS founders, that must be must be incorporated in the United States of America
Amount of funding: $10K to $20M
Getting early-stage expansion capital is a challenge for most ecommerce businesses.
They may not want to give away company shares or deal with the requirements and slow process of traditional bank funding.
Therefore, they often get loans with high collateral and personal guarantee requirements.
Revenue-based financing is a better solution as it allows lenders to fund marketing expenses, and you make the repayments through the revenue generated.
Also, it is worth mentioning the fast application, less paperwork, and a process that is entirely online.
Viably Growth Capital is a capital advance against potential sales from your store.
Viably examines your business's performance and determines the available capital to you regularly.
You can receive up to $150K and return it by deducting it from future Amazon cash distributions.
With Viably Growth Capital, the funding amount is fixed until you repay it.
Once repaid, you may reapply for additional money. In addition, you can seek credit line increases once Viably launches a line of credit products.
Your offer will include a payment schedule with precise dates and amounts for when you withdraw the funds.
Clearco has two different types of funding available to its customers: ClearCapital and ClearRunway. It's a hub for tech startups to find mentorship, funding, and other support services.
Like a traditional merchant cash advance, ClearCapital can help businesses get the money they need. An individual or organization can receive up to $20,000,000 with no predetermined repayment schedule.
Still, the loan's repayment period is 4 months from the date of prepayment.
Invoice funding is something ClearRunway offers to grow SaaS businesses.
You can use the money to fund campaigns to expand your web presence or to cover general expenses.
Clearco can also use the inventory capital option to buy up to $1 million worth of goods from your suppliers for you to sell.
Clearco also has a straightforward fee system. Because there is no compounding interest, businesses know exactly how much they will spend before accepting an offer.
The standard interest rate varies from 8% to 14%, depending on how you will spend the funds. Additionally, all fees are set, which means rising costs are not possible.
Clearco also has a program called "Insights" that can help you track metrics like revenue growth and the success of an ad campaign to learn more about your company's position.
Both of these platforms focus on US businesses but have different requirements.
To receive funding from Viably, you must meet the following requirements:
If your credit is not approved, it will not affect your credit score, and you may apply again.
When processing your funding request, Viably looks at how well your store does in terms of sales, cash flow, and other financial factors.
The capital available at one moment does not guarantee it will be available the next time. The amount may change based on how your business performs.
Only a select few sectors can use Clearco at this time:
Clearco's minimal eligibility requirements are as follows:
However, to qualify, businesses must maintain their earnings for at least 6 months.
Even though the criteria for "consistent" aren't entirely spelled out, it's probably safe to assume that companies with temporary drops in sales or startups that have had some problems initially won't qualify.
Finally, Clearco has no minimum credit score requirement. As a result, there is no credit check during the application procedure.
Clearco also does not demand any collateral or personal guarantees.
Moreover, Clearco cannot seize the owner's assets to cover the deficit if the business fails to pay.
Even if you haven't paid off your first loan in full, Clearco may approve your request for more money if you meet the following conditions:
Registering and applying for funding are always free.
The charge for using Viably Growth Capital is straightforward and all-inclusive.
Remember that fee amounts will vary based on the funds drawn and the overall health of your business.
You don't have to worry about missing a payment because Viably automatically withdraws money from your Viably Business Account.
However, suppose you have insufficient funds to cover the repayment amount.
In that scenario, a "late fee" will be added to your next payment cycle if the funds are unavailable within 24 hours of the original payment date.
Your offer will include a payment schedule with precise dates and amounts for when you withdraw the funds.
How you plan to use the money from the credit will significantly impact the interest rate.
After deciding which funding option to accept, you will get the precise sum.
The percentage could be anywhere between 8% and 14%.
During the entirety of your advance, the charge will remain the same.
For instance, if you borrowed $150,000 at 14% interest, you would have to pay back $171,000.
Clearco will begin deducting payback as a proportion of your sales as soon as you have access to money.
Your bank account will then be debited depending on your linked sales accounts.
Ecommerce funding platforms offer the major advantage of having a quicker and more straightforward application process compared to traditional bank loans.
Viably and Clearco offer a simple, straightforward application process that lasts up to 72 hours.
Viably has an easy and quick application procedure.
Begin by applying for Viably Growth Capital and providing some essential information. Then, connect your Amazon Seller Central and current financial accounts to Viably next.
You must also verify your personal and business identities.
The entire application procedure typically takes up to two business days.
Clearco lending begins with website registration, where you should enter basic information about you and your company.
Link Clearco to your online accounts for sales and payments (PayPal, Square, Stripe, etc.).
digital marketing networks (Facebook, Google, Amazon, etc.).
After entering your information, a loan contract will show your borrowing amount, fixed fee, and repayment percentage. The money should be in your bank account the next day.
Additionally, to apply for Clearco funding, you must provide the necessary information:
Pros
✅All-in-one financing solution
✅Fast and easy application process
✅No hidden fees
✅Viably’s Growth Capital can be used for any business expense
Cons
❌For US-based companies only
❌The maximum funding amount is $250,000.00.
Pros
✅Equity-free funding to emerging tech start-ups.
✅Suitable for eCommerce and Saas businesses
✅Funding amounts to $20 million.
✅You only need to have been in business for 6 months, and there is no background check involved.
✅Integrations with Amazon, BigCommerce, Facebook, Google, PayPal, Pinterest, Shopify, Snapchat, Square POS, Stripe, and Twitter.
Cons
❌Only accessible for use in 6 different types of businesses.
❌Must be a corporation or limited liability company.
❌Demands a recurring monthly earnings of $10,000.
❌Requires a daily repayment plan.
❌For US-based companies only
In conclusion, Viably and Clearco offer unique and valuable services for ecommerce businesses looking for funding.
Viably may be the better choice for those who prefer a more flexible and automated model, allowing faster funding with no equity or interest.
On the other hand, Clearco offers more extensive funding amounts for various ecommerce sectors.
Ultimately, the choice between Viably vs Clearco will depend on each business owner's specific needs and preferences.
It's important to carefully consider the terms and fees of each option, as well as the reputation and customer service of the provider, before making a decision.
By doing so, ecommerce businesses can find the right funding partner to help them grow and succeed in the competitive online marketplace.
If you're looking for an alternative to traditional funding options for your ecommerce business, Myos may be worth considering.
Myos is a new player in the ecommerce financing space, offering asset-based financing to DACH- and UK-based small and medium-sized businesses.
Myos financing offers several benefits to businesses seeking funding:
1. Flexible financing options: Myos offers flexible financing options tailored to the unique needs of each business. It allows companies to choose a financing solution that works best for them.
2. Quick and easy application process: The application process for Myos financing is fast and easy, with most businesses receiving a decision within 72 hours.
3. Competitive rates: Myos offers competitive rates, which can help businesses save money compared to other financing options.
4. No personal guarantees: Myos financing does not require personal guarantees, which can relieve business owners who do not want to put their personal assets on the line.
5. Improved cash flow: By providing businesses with the funding they need, Myos financing can help improve cash flow and enable companies to take advantage of growth opportunities.
Myos financing provides a flexible and cost-effective way for businesses to access the capital they need to grow and thrive.
So, don't let a lack of capital hold your business back.
Sign up with Myos today and get the funding you need to reach your full potential.
5 Clearco Alternatives To Consider for Financing Your Business
.png)
.png)
