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Finance Guide: Finance for E-Commerce

Published on 28th April 2016 - Last update on 19th November 2019

Some of the more common reasons for business finance, such as rent or commercial mortgages, are not applicable for e-commerce businesses, but there are still many reasons an e-commerce business should look into business finance.

Finance for e-commerce

Business finance can offer a number of advantages to e-commerce businesses, including helping the business purchase more stock, smoothing out cashflow patterns so that commitments like paying wages or tax bills do not use up all the business’s working capital, and increasing the budget for the website, digital marketing, and general online presence – things that are important for every business but which are especially applicable to e-commerce businesses.

Many business lenders now have experience in the online market and offer loan products tailored to e-commerce businesses. Another advantage some offer is the ability to link to a business’s online accounts – such as cloud accounting software or online payment systems – to make it easier for a business to provide the necessary financial information and speed up the approval process.

The types of finance best suited to e-commerce businesses include invoice finance, allowing the business to raise money on its unpaid invoices, business credit cards, which offer a quick way for a business to access the funds it needs, and – if the business imports or exports internationally – trade finance.

Making sure you have the right finance for your business is complex and can often be confusing.

There are so many options that can seem very similar, but which when reviewed closely can be very different in terms of monthly payments, overall costs, up-front fees and terms and conditions.

If you’d like to talk to one of our Business Finance Specialists:

Call us on 020 3637 2455

Or email us on [email protected]

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Sarah Thornton

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