Funding Restocking – Vital for growth and preventing stockouts

As a newer seller, it’s possible that you are funding the restocking of your products through a few ways:

  • You have the cash on-hand
  • Money from your day job
  • Credit cards
  • Borrowed from friends and family

While these are great sources of cash, they don’t scale well.

Credit cards have limits, friends and family don’t have infinite funds (or patience), and your job will soon not keep pace with the amount of product you need to re-order.

What are you to do? Enter the world of lending.

Borrowing money for your business is not as scary as you might think. As with anything else, it has a cost, and you need to make it work within your margins.

After that, you need to find a lender. Lending for eCommerce businesses is actually a bit tricky, and many traditional sources of business lending won’t even consider loaning money to an eCommerce business, it’s just the way it is.

All is not hopeless, though. With the need in the market have cropped up lenders specifically designed online sellers.

Onramp Funds (this site) is one of them. With Onramp, you can get funds for your reorders before you risk a stockout. Fees are based on a percentage of sales (usually around 1% of sales), and your payback schedule syncs up with your sales (meaning if you had a slow 2 weeks on Amazon, your payback for that period will be reduced accordingly).

It’s a great solution for sellers that need flexibility, low fees associated with borrowing, and source of funds to grow their business.

Check out Onramp if you’re growing your business but haven’t figured out funding the future growth of your eCommerce business.

Summary: Funding the Growth of Your eCommerce Business

  • Funding your restocks yourself through personal funds and profits isn’t scalable, your costs will soon outpace available cash.
  • Traditional lending from places like banks don’t offer loans to online businesses.
  • New lenders (like Onramp Funds) offer flexible cash advances to sellers that work within their specific business parameters.
  • Finding a source of funds is a requirement in eCommerce these days, so make sure you work the cost of lending into your margins and find a good source for funds.