According to Forbes, customers will probably keep using the internet to make their retail purchases.
And by 2026, it's anticipated that 24% of retail transactions will be completed online.
So it is evident that investing in your ecommerce business is more than simply a trend.
It is a fantastic long-term investment, particularly if you want to grow.
Are you looking for a finance company that can help you along the way?
Wayflyer and Clearco are two of the leading financial companies in the industry.
Both offer competitive rates, flexible terms, and personalized services to cater to your needs.
Whether you're a freelancer or an established business, they can help you find the financing solution that meets your requirements.
So, to choose the right finance provider for your needs, let's compare Wayflyer vs Clearco now!
Every company has distinct differences from its counterparts - 'one-size-fits-all' approaches can't exist.
There is no ideal funding choice for all ecommerce businesses, only an arrangement that accommodates your needs most efficiently.
Let's start with a quick overview of these two companies.
Based in: Dublin, Ireland, with offices in Dublin, London, New York, Sydney, Atlanta
Best for: Ecommerce for MidSize and Small Businesses, Enterprise, Freelance, Nonprofit, and Government.
Amount of funding: $10K to $20M
Wayflyer is a company that offers revenue-based financing to ecommerce businesses. In addition, it is committed to aiding merchants in scaling, much like the other ecommerce financial institutions.
With Wayflyer, businesses have access to flexible capital that can be used for marketing, inventory, and other cash flow requirements.
To assist funded businesses in expanding their operations and reaching new clients, Wayflyer also provides access to marketing professionals and an analytics dashboard.
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.
Clearco is an ecommerce investor that offers equity-free capital solutions to ecommerce businesses targeted at accelerating growth.
They provide several finance options, including inventory funding, line of credit, and marketing funds.
Clearco offers equity-free investment based on the merchant's effectiveness and income.
Also, it finances and manages invoice payments for ecommerce brands, allowing them to free up cash flow in the present to prepare for the future.
Not many ecommerce businesses have it easy to obtain early-stage expansion capital. Some of them also don't want to sell shares of their company in return for funding.
Additionally, traditional funding that banks offer comes with numerous requirements, and takes a very long time to complete them.
As a result, many ecommerce businesses frequently need to get loans with substantial collateral and personal guarantee requirements to finance their businesses.
So, the answer lies in revenue-based financing.
Revenue-based lenders offer to finance foreseeable marketing expenses, and the revenues from such costs are used to pay back the loans.
Since its founding in 2019, Wayflyer has assisted more than 1,500 businesses in accelerating their growth.
Additionally, $1B of funding has been provided to ecommerce brands, making it Ireland's tech unicorn.
By offering various finance and analytics solutions that enhance cash flow, boost sales, and optimize supply chains, Wayflyer assists ecommerce businesses worldwide in fulfilling their development potential.
Wayflyer provides affordable, non-dilutive, unsecured funding for businesses that need to secure advertising space and inventory, opening the road for growth and profitability.
Daily marketing performance analysis is also conducted by Wayflyer's analytics platform, which provides ecommerce companies with insights and specific, actionable recommendations for performance enhancement.
Wayflyer integrates with: Amazon, BigCommerce, Facebook Ads, Google Ads, Google Analytics, Magento, Shopify, Stripe, Triple Whale, and WooCommerce.
Clearco was founded in 2015. Since then, it has funded over 7,000 businesses with more than $3B.
You can use funds to invest in campaigns to increase your web presence or cover general expenses.
Or, Clearco can purchase up to $1M worth of goods from your suppliers through the inventory capital option for you to resell.
As a retailer, you need to generate revenue using platforms like Amazon, Shopify, Stripe, and Square.
In addition to finance, Clearco provides you with access to the following:
Clearco integrates with: Amazon, BigCommerce, Facebook, Google, PayPal, Pinterest, Shopify, Snapchat, Square POS, Stripe, and Twitter.
Each platform has its requirements and differences, the biggest one being present in specific markets.
Since late 2002, concentrating on Canada and the United States, Clearco has been reducing its influence elsewhere.
According to Clearco, Outfund will take over its operations in foreign markets as part of a "strategic alliance."
Clearco had operations in the UK, Ireland, Germany, and Australia before this change.
To be eligible for funding from Wayflyer, you need to adhere to the following criteria:
Clearco's minimum eligibility criteria include the following:
The percentage transaction charge added to the cash advance amount is the sole expense associated with financing.
Typically, the cost ranges from 2% to 8%, depending on how much cash you need and how well your company is doing.
The cost is determined by how you use your resources. Once you choose your funding offer, you will know the exact amount.
It can range from 8% to 14%. Throughout your advance, the charge is unchanged.
For instance, you must return $112,000 if you received $100,000 at 12%.
Clearco will start deducting payback from your sales as a percentage as soon as you have access to money. Then, based on your linked sales accounts, your bank account will be debited.
One of the most significant benefits of ecommerce funding platforms is that their application process is much simpler and faster, especially when compared to bank loans.
There are several steps to follow to get funding from Wayflyer;
The offers will be based on how well your company performs. Each submission is organized precisely so that you can understand how much financing you receive and the fees and repayment percentages.
The software even gives an analysis that estimates your company's growth rate with and without financial assistance, so you can see how big of an influence the money may have.
Similar to Wayflyer, Clearco also has a step-by-step application process:
Clearco has no minimum credit score requirement, and businesses are not subjected to credit checks upon application.
By submitting your self-reported monthly income, you can get an estimated financing capacity throughout the application process.
Your financing capacity will decrease when you submit bills in proportion to the size of the invoice and the extension plan you have chosen.
A program for an extension displays the expected payments and the related charge. You can select an extension plan for 4, 5, or 6 months. At the beginning of each month, you will receive an updated capacity limit which must be approved.
As you can see, there is no clear winner in this Wayflyer vs Clearco battle.
It depends on your eligibility, the amount of money you need, and what market you are leaning toward.
Still, it would be best to consider other important questions when choosing the best financial provider.
For example, do you have to submit a lot of paperwork? Or undergo extensive background checks?
Is your provided data safe? And what are the exact fees you need to pay?
Before applying for a loan, make sure you understand all the terms and conditions that may apply.
But, if you want to try a third option that ticks all the boxes mentioned above, you may consider Myos.
Myos is an asset-based finance company supporting sellers worldwide to accelerate their growth.
It offers from €10.000-2.500.000, without any fixed costs, no personal guarantees, and flexible repayment at any time.
Who is Eligible for Funding?
The application process is pretty straightforward:
With Myos, you don't have to give any guarantees or face personal risk, as we only take your products as collateral.
This way, you can minimize risk and take care of the growth of your business without any worries.
Sign up and unlock your business potential with Myos today!
Revenue-based loans are non-dilutive, similar to debt, so you retain ownership of your company and control over its course. However, a specified sum must be repaid, much like with debt. When it is, you are released from any further responsibilities.
Fees are determined by the ecommerce funding platform and may differ for different brands and packages, depending on the pricing model. The probability is that the fees or rates can go lower increase as your business grows.
Ecommerce funding platforms implement protection measures to ensure your confidential data, such as finances and personal info, is secure.
Most use multiple security features in conjunction with systematic strategies, including data encryption, risk assessment processes, and implementing recognized security protocols.