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5 eCommerce Financing Options That Allow You to Keep Your Equity

Now more than ever, businesses need working capital to sustain their operations amid pandemic conditions. Before COVID-19, small business owners had long been struggling to find lenders willing to work with them. Things are even more complicated, since COVID-19 has reshaped the finance landscape. According to FinTechMagazine, more and more offline commerce is moving online.

However, many underwriting models for offline businesses don’t translate to eCommerce businesses. This is incredibly unfortunate, considering how many opportunities are available today for these companies. As demand increases for products from online platforms, companies could be making big strides – if they only had the capital they need to do so.

“Those companies need financing solutions to keep up with that demand or risk stockouts and poor customer experience,” said Keith Smith, CEO and co-founder of Payability.

During a time when making big business decisions can be a bit scary, thinking about taking on debt can be overwhelming. But, in some cases, it can be a wise reinvestment. For the ecommerce business owner, there are ways you can secure extra capital, while keeping your equity and staying in control of your business.

As the U.S. economy slowly reopens, it’s really a waiting game; waiting to see if cash flows return. Here are some of the top e-commerce financing alternatives you can take advantage of right now:


If your credit score is an issue and your business is new, Brex has created a corporate charge card for early-stage startups. It also focuses on the funding of the business itself, rather than credit scores. Essentially, the card connects to your corporate bank account, which is automatically debited for the balance. There are no annual fees or foreign transaction charges.

PayPal Working Capital

This option is only available to PayPal sellers based on their PayPal account history.  If eligible, there is no credit check involved and no interest. These funds can be used for day-to-day options of your ecommerce business, like covering payroll and paying rent. The loan involves a fixed fee, which is 10% to 30% of daily sales.

Lighter Capital

An “alternative VC”  firm, Lighter Capital, helps entrepreneurs raise funding without having to turn to traditional venture capital or give up equity or board seats. Essentially, this revenue-based financing incentivizes investors to help your business because they receive a certain portion of your business’ monthly revenues (typically 1% to 9%). Eventually, these monthly payments end when they reach what is referred to as the “cap”.

Shopify Capital

A lending program for Shopify merchants, this option provides funding in two forms: loans and merchant cash advances. Loans involve getting a lump sum that is repaid over 12 months (payments are automatically withdrawn). Merchant cash advances are closely tied to sales. Money is provided in exchange for a percentage of your future daily sales.

High Risk Business Loans

One of the top advantages of working with a high risk specialist like First American Merchant is that you gain a partner that understands the ins and outs of running a high risk business, like an ecommerce shop. Their cash solutions are specifically tailored to meet your unique needs, and they offer industry-leading merchant services. You can be approved and receive your funds in as little as 72 hours, no tax returns or financials required.

At First American Merchant, we offer you step-by-step straightforward solutions to help with any merchant account and funding issues. We are dedicated to helping ecommerce merchants recover from tough times and offering solutions that help them get back on track and thrive.