Stock Finance for Shopify Stores

If you're a Shopify seller, then you'll know how difficult it can be to maintain the balance. Ecommerce businesses face many challenges that may impede stock buying, such as seasonal buying trends and supply chain issues. With ecommerce business finance from Rangewell, you can invest in your inventory at any time of the year with finance for stock purchases.

Whether you resell products or make them yourself, you may qualify for ecommerce business finance to help boost your cash flow and allow you to invest in more stock. There are several different types of stock finance for ecommerce businesses. From short term bridging loans to longer-term solutions, there are several factors that lenders will take into account, including the value of your existing stock, your business performance and any other assets you own. 

You may have heard about Shopify's own finance for ecommerce businesses harnessing the platform. Let's take a closer look at Shopify Capital and explore the pros and cons of this ecommerce funding solution. 

About Shopify Capital

Shopify Capital offers merchant cash advances and business loans for businesses on the platform. There is no interest, but you'll have to pay a flat fee by remitting a fixed percentage of your daily sales to Shopify. This means your daily payment amount changes depending on how much you sell on a given day. 

Merchant cash advances can be ideal for online retailers as the funding you are offered will keep pace with the level of business you are doing. Instead, repayment of finance is automatic, and the more business you do, the more quickly your advance is paid off - which could let you raise more cash on a rolling basis. This could be a good solution if your Shopify business is growing, but what if it's not?

If you use Shopify to host your website or use their point-of-sale platform, you might be eligible for Shopify Capital. However, you cannot apply directly. Instead, you may see an offer in your Shopify account if your shop meets the minimum requirements for finance. 

Any offer you may receive will be based on your Shopify business history, and Shopify will not reveal what the key figures in making their decision may be - the only way to get the funding is to wait until you see an offer in your account, it means you meet Shopify Capital's minimum requirements. 

This is not the end of the process. You'll then have to complete a simple application to get final approval. If approved, you'll get a formal financing offer, and if you accept it, you'll receive funding within two days.

So, Shopify Capital is an innovative solution, but it may not be suitable for all businesses. That's why it's vital to shop around and find the best deal for your circumstances. 

For example, if you are new to the Shopify platform or don't meet their minimum requirements, you may not qualify. There is also a waiting period for application approval and funds release, which is not ideal for those who need the cash now. 

Since you cannot apply for Shopify Capital unless it is made available to you, and even then, you are not guaranteed a successful response to your application; it is not recommended that you rely solely on this for your ecommerce business finance. 

Plus, the amount provided by Shopify Credit will only ever reflect the business you are doing - never your ambitions to take that business further - so it may not be enough. While it's great that Shopify Capital is an option for some, it still pays to shop the whole of market and work with an independent broker like Rangewell to ensure you have explored all of your funding options and found the right one for you.

Ecommerce inventory finance with Rangewell

Ecommerce is a fast-moving world, so securing finance is not always straightforward. That's why it's best to work with an experienced broker like Rangewell. We're not just here to find the best finance deal for you, although that is a big part of it. We also help you with the application process and support you to make the best decision based on your risks and other factors. 

As we are an independent finance broker, we have access to the whole of market, including a number of specialist ecommerce lenders. Our expert advisors will work with you through every step of the process, from assembling the very best application to determining the best type of finance to take your business forward.

As you'll know, online retailers often have small margins and rely on consistent income to fund the day-to-day operations of the business. Even if you don't intend to invest in inventory, there are a number of other ways in which ecommerce finance can help support your business, from equipment maintenance to warehousing costs, subscriptions to payment services, marketing support, and even paying staff wages. 

Whether starting a new online business or already an established Shopify trade, we can find the lenders who will work with you to provide the funds you need.

We know that lenders will vary greatly in what they offer and the types of finance available to retailers, Even a fraction of a percentage point can make a substantial difference to what you actually pay each month. That means getting expert support to find the right deal is essential to make the most of the potential of your ecommerce business.

Our knowledge can not only help you secure the funding you need for your Shopify business - it can save you a great deal of time, money and hassle.

Ready to get started with Shopify finance and find out your eligibility for trade finance? Get in touch with our specialist finance experts today.