Diversifying Selling Streams for Stronger Ecommerce Finance
Attracting ecommerce finance when you rely on Amazon selling can be difficult
See how Rangewell helped a client find a lender who funded them based on their diverse income streams.
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While Amazon may be one of the world’s biggest marketplaces, sellers who only do business through Amazon are restricted solely by the platform and its own terms and conditions. For businesses that are growing but want to invest more heavily, Amazon Lending is the platform’s own solution.
Unfortunately, Amazon Lending has its own limitations. If you want to leverage investment for a wider ecommerce venture where you sell across multiple channels or platforms, you’ll need a more mainstream lender’s support. In the finance world, lenders exist in many different categories: from mainstream banks to independents. Some specialise in ecommerce finance, but as it is a growing industry many lenders are still hesitant about funding digital-only ventures.
This is especially true when it comes to single-platform businesses. For Amazon sellers, attracting mainstream finance and loans can be a challenge as the lender will likely view your reliance on Amazon as a risk.
Recently a client who sold via five different platforms: eBay, Amazon, Etsy, Facebook and their own website, approached Rangewell with a challenge. They had been struggling to attract the right finance options. Amazon itself would only lend for their platform, while other lenders would not offer a suitable finance deal because of the client’s multiple revenue streams.
The client wanted to find a lender that understood ecommerce as a business and could offer rates and repayments based on a percentage of each stream, rather than focusing on a single repayment.
Why we were able to help
Our ecommerce finance brokers assessed the client’s income streams and helped them create an application that showcased each stream’s value individually and as a whole. This allowed the lender to quickly assess the financial viability of any potential investment and showed that the client had varying levels of income from each stream at different times of year.
Crucially, Rangewell’s negotiation efforts meant we could ask the lender to provide finance with a unique repayment plan that was based on a percentage from each of the seller’s income streams. This meant our client was able to make repayments without worrying about specific-platform performance.
Securing this sort of arrangement requires insight into the ecommerce lending market which most retailers simply do not have. Our broker team can harness their knowledge and relationships with lenders to your advantage, as well as additional advice and insights from our experience in ecommerce businesses in general.
About ecommerce finance for multi-channel sellers
If you’re an ecommerce retailer and you’re selling on multiple platforms or marketplaces, finances can become a tricky issue. Whether you’re struggling to juggle advertising costs across each channel, sourcing suppliers or stock, navigating each platform’s specific costs/terms or any other hassles, your capital position can become hard to manage.
At Rangewell, we can help you secure the finance needed to grow your business on all of your chosen platforms. We’ll aim to do this in a way that most satisfies your requirements and leaves you with terms and rates that don’t restrict your business or cash flow in a negative way. Instead, we can negotiate specific packages with lenders due to our vast experience and sector insight - meaning you can benefit from finance loans built around your specific revenue patterns and ability to repay without cutting down on growth.
If you’d like to learn more about ecommerce finance options, contact Rangewell today and we’ll be happy to help.