post by:
Michael Goldstein
Shopify stores are taking over the eCommerce world. If you own one, then you know it takes money to succeed. Where do you get the proper cashflow? Funding platforms can help you meet your goals, so you can grow at your own pace.
Funding platforms offer Shopify stores many financing options. Cash can be tight, especially if you are just starting your eCommerce business or looking to expand it. Funding gives Shopify businesses much needed breathing room, so they can make decisions based on projections rather than worry over lack of cashflow or working capital. In turn, your store will be able to scale or grow according to your preferred speed. Sound like something you’re interested in? Let’s delve into the best funding platforms for Shopify stores.
What Is Shopify?
Shopify is an eCommerce platform for sellers. They were established in 2006 and have become one of the most popular online shopping platforms. They offer many benefits to the sellers, such as website setup, sales data, and a POS system. It’s for those who sell services, products, memberships, and classes. A great choice if you have the need to build an eCommerce business and want to succeed at it, too.
1. Shopify Financing
Shopify offers their own funding! This can be extremely helpful when it comes to application approval and speed. They have three different plans: Basic, Shopify, and Advanced. All varying in credit card APRs and offered benefits.
However, it can be difficult for sellers to request Shopify financing, since the funding is automatically offered to eligible sellers only. Additionally, the financing options may have higher interest rates than other business funding, which can be a considerable downside for some sellers.
2. 8Fig
8fig offers a great option to scale your Amazon business. They provide you with funding for every stage of the supply chain as well as additional tools to plan and manage, and fund your business.
Like most alternative lenders, you can prequalify directly on their website free of charge and with zero effect on your credit score. 8Fig stands out from the competition, however, with flexible funding. In other words, instead of one lump-sum, they infuse capital into your Shopify business continuously, and you can change your payments and remittances in real-time according to your store’s performance
3. SellersFunding
SellersFunding offers options to those who are growing rapidly and want the funding to match. If you work internationally, this platform will help you navigate. Plus, the application and funding process is quick.
Shopify sellers that want to expand can rely on this platform. They keep up with the changing times and offer funding specifically to eCommerce stores. However, you’ll need at least 6 months of sales history and $20,000 of monthly sales to qualify for their Working Capital funding.
4. Kickstarter
Kickstarter is a crowdfunding platform that works with a variety of industries. Crowdfunding has many benefits, including the fact that it’s an all-or-nothing funding model, If the project doesn’t reach its target goal, then no money changes hands.
Shopify sellers may benefit from this strategy. It takes a lot of hard work to gather people who will invest in you, so it’s important to find a financing platform that is designed for your specific needs. Remember that Kickstarter applied a 5% fee if your project is successfully funded.
5. Third-Party Lenders
SBA loans are an option for those looking for larger loan amounts or can’t get approved by traditional banks. SBA loans can give you long-term financing for expansion, as well as short-term financing for day-to-day costs.
Shopify sellers benefit from SBA loans due to their flexibility in credit scores. You approach SBA loans when you have exhausted all other methods (it’s a requirement). So, if you don’t have the best business history, applying for a third party loan may be the best option.
How Do You Decide Which Funding Platform To Use?
There are several funding platforms to choose from. The difficult part is finding the one that will benefit you the most. Each company offers plans that are unique to them. If you find two companies that both offer lines of credit, their application and interest rates will be different from one another. Some funding platforms only want businesses who are looking to expand and won’t accept startups. With this said, it just takes some research to find the one you’re looking for. So, get out there and get that funding for your eCommerce store!