Due to the changes brought about by the pandemic, online businesses have been thriving. Many stores were forced to take their products and services online. Others added delivery and curbside pickup options. Still, others launched solely online to meet unique pandemic-related needs – and this push to the digital space is showing no signs of slowing down.
But these eCommerce merchants have needs of their own. Rapid growth demands cash and lots of it. Developing new services and products requires cash. Implementing new technology and tools and adding to your team uses capital as well. Thankfully, lenders are taking notice.
According to new research, there has been a 47% increase in demand for flexible funding for online businesses. 365 Business Finance reports a 35% spike in the average amount advanced for eCommerce customers. This data shows just how quickly these online businesses are expanding and seeing success, requiring a boost in the capital.
SMEs Prefer Merchant Cash Advances
For some years now, small and medium-size businesses have turned to a merchant cash advance (MCA) for cash flow assistance. The funds they provide boost cash flow for purchasing new equipment, increasing inventory, hiring new workers, investing in technology and tools, and fueling expansion or refurbishment.
Ecommerce is no different when it comes to cash flow needs. The cost of continually updating and improving online shop fronts is a big investment. The flexible financing an MCA provides makes it the perfect solution, with no APR, fixed-term, or set monthly payments.
An MCA allows you to receive a one-time, lump-sum payment which you then repay through a percentage of your sales over time (usually credit card transactions). These payments are typically made daily and automatically as your business generates sales. They are also known for a speedy, hassle-free application process that puts cash in your business’ bank account in as little as 24 hours.
Solution for Growing Ecommerce Industry
Experts predict that the eCommerce industry will continue to grow substantially over the next few years. Leading online businesses to invest even more heavily in their online presence, will require additional funds. The best move eCommerce merchants can make is to have a reliable, flexible source of funding on standby, such as a merchant cash advance.
The key is to make sure the provider you choose is an industry-leading lender. It’s also critical that they understand the eCommerce industry and specialize in working with eCommerce merchants. This ensures you will have access to customized products and exceptional support.Get Started Now