If you want to build real success, you need the right kind of eCommerce funding. The industry of online selling is lucrative, but you need to know how to maximize your impact. Launching big marketing campaigns, hiring market analysis services, and shipping and ordering large quantities of inventory take serious financing. Many online sellers that are starting up decide to use their own money, but this will always come with limitations.

The nature of eCommerce means that unforeseen expenses are prone to emerge. If you aren’t ready, it can derail your whole operations and disrupt your income. To avoid such a situation, we put together a list of five ways to get reliable eCommerce funding.

Even if an eCommerce seller is able to cover the cost of operations with their own savings, there is still the risk of something going wrong. A delayed or faulty batch of inventory can mean huge disruptions to sales. But this is where having good cash flow can make a difference. Ordering another shipment via air freight, while more pricey, is faster and can ensure that sales momentum continues. This increased short-term expense can help prevent even bigger losses elsewhere.

While some sellers might prefer to just go out of stock, they are missing out on the negative consequences this causes for your business. It will cause a worse customer experience, which can lead to bad reviews and customers going to your competitors instead. Platforms like Amazon will also rank your store lower because frustrated potential buyers might go to other websites. Any marketing dollars you were spending on increasing your search ranking will be wasted, while competitors gain a boost. In the highly competitive world of online selling, every sale matters.

Reliable eCommerce funding can also allow a business to invest in itself. Faster shipping, improved packaging, new products, bigger marketing campaigns, or more frequent inventory shipments can help take your store to the next level. It is for this reason that we recommend seeking funding that works for you.

A bank loan is the most conventional way to get eCommerce funding. After receiving your application, the bank carefully evaluates your financial status, including your credit history, to assess your ability to repay the loan. This process typically takes several weeks and involves substantial paperwork.

With a bank, you can get access to large sums of money, but your interest rates will depend on the specific terms of your loan. Smaller businesses often face more stringent repayment terms, since they are less able to guarantee that they will repay the whole amount. Some banks will insist on you offering assets as collateral in case of non-payment. Having a better credit history and larger income generally leads to more favorable conditions, giving larger companies an advantage.

This is a great funding option for eCommerce companies that already have a good sales volume. Revenue-based financing is conditioned by your income. The more your business brings in, the larger the loan you will qualify for. Repayment occurs monthly, with a cost of capital ranging from 5% to 25% of your monthly revenue, depending on the terms of your agreement. If your business is performing well and has kept its accounting in good order, you will probably get better conditions.

Unlike traditional forms of eCommerce funding, like bank loans, revenue-based financing isn’t as dependent on your credit history. Your business performance will be much more significant. Even businesses with relatively moderate sums of income can typically qualify, making it ideal for online sellers. Repayment is proportional to your revenue, ensuring that you only pay back what you can afford, minimizing the risk of overburdening your finances.

Business grants are hard to get but highly advantageous. They are given to businesses through organizations and programs that tend to be sponsored by the government. This type of financing is usually meant for specific projects, such as scientific research, although some of it is available to online sellers. For example, people from disadvantaged or minority backgrounds, or who work in specific industries or areas that the government wants to invest in.

A business grant often doesn’t need to be paid back in full, or at all, depending on the conditions. However, you will have to complete a lot of paperwork. First off, finding a grant program you are eligible for will take serious research. Completing the application usually involves countless details as well, which is why some businesses hire grant writers to help with this process.

You also need to keep in mind that business grants come with conditions for how you spend the money. The organization providing the grant usually demands regular reports about your progress and how you are using their funds.

When you receive a Merchant Cash Advance, you get a sum of cash that you then pay back through a percentage of your credit card sales. This means you will see decreased profits until the full sum is paid back. Since lenders get this guaranteed income, MCAs usually offer better conditions than other types of eCommerce funding. The process is also noticeably faster and more straightforward than getting a bank loan, for example.

The biggest factor in the deal's conditions will be the income and performance of a given business. After you receive the funds, you can invest them wherever you feel is best for your business. Many other types of funding don’t provide this freedom, making MCAs a good choice.

Crowdfunding is great for businesses that have a good idea for an original and unique product. The crowdfunding landscape is full of companies looking for capital so it is important to stand out. This means you already need to have enough cash on hand to pay for engaging content to build as much hype as possible. This will be in the form of great photos, videos, and copy. However, it will be the quality of your product that decides whether you succeed or not. For this reason, try to spend as much time as you can to research and develop a product that is marketable.

With crowdfunding, you will not encounter tight requirements for how you spend your money, and there are no credit or sales history checks. However, many companies taking this road will offer financial backers equity. This is not a requirement, but it is a great way to get people engaged to give larger sums of money. If you prefer not to go down that road, offering rewards to people who contribute more, is a great and risk-free alternative.

If you want eCommerce funding that doesn’t require giving up equity or having a good credit score, consider getting an 8fig Growth Plan. You will get regular and continuous cash injections, which you can invest in your business however you want. 8fig’s platform gives you free access to its AI CFO technology, which will help you oversee and optimize your whole supply chain and operations. This will give you the tools to plan up to a year of inventory shipments in advance, giving you much better oversight of your cash flow.

There are no hidden fees or interest, and nothing has to be offered as collateral. Instead, you pay back a cost of capital over an agreed-upon timeframe that is planned to maximize your cash flow at all times. Sign up with 8fig today to build long-term, sustained growth.