Amazon Seller Financing Made Easy with 8fig

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8fig offers flexible financing options for Amazon sellers, allowing them to access up to $750,000 in funding.

With 8fig, you can get approved for a loan in as little as 24 hours, making it easier to manage cash flow and grow your business.

This flexible financing option can be used for various business purposes, such as inventory purchases or working capital.

8fig's approval process is based on your Amazon sales performance, so you don't need to provide collateral or personal guarantees.

Amazon Seller Financing Options

Amazon Seller Financing Options offer a range of solutions to meet the unique needs of Amazon sellers. You can choose from business lines of credit, inventory financing, and other options to manage cash flow and grow your business.

To determine which type of funding is best for you, consider your business's situation and goals. For example, if you need help with managing cash flow, a business line of credit is a considerable option. On the other hand, if you need a one-time lump sum of cash and have predictable sales, a merchant cash advance may be better.

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Alternative lenders like Clarify Capital take a unique approach to determining your eligibility, understanding the needs and challenges of an e-commerce business. They offer access to a network of 75+ lenders to help online retail business owners fund and secure the best funding for their needs.

Here are some Amazon Seller Financing options to consider:

  • Business Line of Credit
  • Inventory Financing
  • Short-Term Loan
  • Merchant Cash Advance
  • Amazon Lending

These options can provide flexible financing that enables you to place orders with your suppliers without tying up cash in inventory, and often with longer payment terms and supplier discounts.

Equity

Equity financing can be a good option for Amazon sellers who need access to more funds. Equity financing involves selling shares of your company to willing investors, who can include family, friends, venture capitalists, or angel investors.

You can use the money from equity financing for anything you want, such as day-to-day expenses or expanding your business. With multiple owners comes many experienced voices, which can help improve your business operations.

However, with equity financing, your brand's ownership is diluted with every investor. You have to share profits among the shareholders, which may be more costly than paying interest on a traditional loan.

What 8fig Offers

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8fig offers a range of tools and services to help Amazon sellers manage their cash flow and grow their business. With 8fig, you can get funded in just days and receive continuous capital infusions into your business right when you need it.

One of the key benefits of 8fig is its flexibility. You can adjust your payments, remittance schedules, or even funding amount as your business needs change. This is especially helpful during seasonal fluctuations or unexpected spikes in demand.

8fig provides a Growth Plan that optimizes your cash flow, ensuring you have the capital you need to stay in stock. This is in addition to the funding you receive, which can be used to invest in more ad buys, place orders with your suppliers, or capitalize on opportunities around busy shopping periods.

In addition to financing, 8fig offers a range of tools to help you manage your cash flow, forecast your sales, and increase revenue. These include supply chain mapping tools, demand prediction software, and sales analytics.

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Here are some of the key features and benefits of 8fig:

  • Fast and easy application process
  • Continuous capital infusions into your business
  • Flexibility to adjust payments and funding amount
  • Supply chain mapping tools and demand prediction software
  • Sales analytics and cash flow management tools

By using 8fig, Amazon sellers can scale their business 4X as fast and achieve their growth goals. With its flexible funding options and range of tools and services, 8fig is an attractive choice for Amazon sellers looking to take their business to the next level.

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What is 8fig?

8fig is a funding platform that offers more than just financing, it's a business partner for growing your Amazon business. 8fig provides tools to manage cash flow, forecast sales, and increase revenue.

Their funding is always equity free, which means you don't have to give up ownership of your business to get the capital you need. This is a big advantage for Amazon sellers who want to stay in control.

8fig's Growth Plans are designed to optimize cash flow, ensuring you have the capital to stay in stock and meet demand. This is crucial for Amazon sellers who need to keep up with customer demand to stay competitive.

As an 8fig customer, you'll get access to supply chain mapping tools, demand prediction software, and sales analytics. These tools can help you make informed decisions about your business and stay ahead of the competition.

Understanding Cash Flow

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Cash flow is a critical indicator of your Amazon seller business's health. A lack of funds can present significant challenges for maintaining inventory, investing in growth initiatives, and making regular payments.

Poor cash management can cause headaches and unwelcome surprises, halting growth and resulting in an unprofessional image if left unchecked. Amazon FBA cash flow issues can jeopardize your performance, including being de-platformed or losing visibility amongst the competition.

Cash flow issues can be caused by a variety of factors, including inventory storage limits, changing inventory limits, and general FBA rules that shift unexpectedly. These issues can create significant delays between sales and payment receipts.

Amazon FBA cash flow issues can be mitigated by securing a financing arrangement that works with you, not against you. Online merchants can maintain their competitive edge by turning to private eCommerce lending strategies explicitly built for eCommerce business models.

Here are some common cash flow issues faced by Amazon FBA merchants:

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• Inventory storage limits

• Changing inventory limits

• General FBA rules that shift unexpectedly

• Being forced into continually securing new products

• Amazon buying out vendor supplies before sellers can restock

• Significant delays between sales and payment receipts

These issues can have a significant impact on your business, making it essential to have a plan in place to manage your cash flow.

Alternative Funding Options

You don't have to rely on traditional banks to secure funding for your Amazon business. Alternative lenders like Clarify Capital can help.

Low marketing funds can create a cycle of limited marketing leading to low sales, making it hard to secure sales. Business loans often have higher lending limits than personal loans and may not require using personal assets as security.

Peer-to-peer financing is a personal loan from private investors, not to be confused with crowdfunding. You'll have to manage everything on your own and review your contract carefully for hidden fees.

For more insights, see: Fund Finance Loans

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Revenue-based financing approval can take only a few days, and qualification is a straightforward process relying on sales data. You can receive a lump sum cash advance based on projected sales over a fixed period, and repayments are directly deducted from your bank account.

Merchant cash advances offer much-needed cash flow, and you retain control over the funds. However, the cost of capital can be higher, and the loan doesn't build business credit.

Here are some alternative funding options to consider:

  • Business Line of Credit
  • Inventory Financing
  • SBA Microloan
  • Short-Term Loan
  • Merchant Cash Advance
  • Credit Cards
  • Amazon Lending

Ecommerce and Marketplace

Ecommerce seller financing comes in different forms, but some common types include revenue-based financing, merchant cash advances, business loans, business credit lines, investors, and marketplace financing.

Marketplace financing has become more popular for ecommerce businesses hosted on platforms like Amazon and Shopify. It's worth looking into for those who have a storefront on these marketplaces.

Some of the most common forms of ecommerce seller financing are:

  • Revenue-based financing
  • Merchant cash advances
  • Business loans
  • Business credit lines
  • Investors (Venture Capitalist or Angel)
  • Marketplace financing

Working Capital for Online Retailers

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Working capital for online retailers is crucial to keep up with demand and avoid going out of stock. This is especially true for Amazon sellers who want to get to the top of the search results.

Amazon Seller financing, such as 8fig, can provide the necessary funding to stock enough inventory and meet demand. With 8fig, you can get funded in just days and receive capital infusions into your business right when you need it.

Traditional lenders may be hesitant to provide loans to e-commerce businesses due to their unique nature. However, alternative lenders like Clarify Capital take a more flexible approach to determining eligibility and can provide the necessary funding.

Revenue-based financing is a short-term unsecured financing option that ties repayments to future Amazon sales. This type of financing can provide the flexibility needed to adapt to changing sales cycles.

Here are some common forms of ecommerce seller financing:

  • Revenue-based financing
  • Merchant cash advances
  • Business loans
  • Business credit lines
  • Investors (Venture Capitalist or Angel)
  • Marketplace financing

Marketplace financing, such as Amazon Lending and Shopify Capital, can provide working capital, but it can also limit the freedom and flexibility of ecommerce sellers.

Tips for Keeping Your Stock in Top Condition

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To keep your stock in top condition, consider using Fulfillment by Amazon (FBA) for 73% of Amazon sellers use this method, which reduces your involvement in inventory, transportation, logistics, and customer service.

FBA is a great option because it allows you to focus on other aspects of your business. By using FBA, you can optimize efficiency and reduce risks.

If you choose to use Fulfillment by Merchant (FBM), you'll need to store your inventory, ship products directly to customers, and provide customer service yourself. This method requires more labor and attention to detail.

To stay on top of your inventory, consider the following tips:

  • Use FBA to reduce your involvement in inventory management, transportation, logistics, and customer service.
  • Keep track of your inventory levels to avoid stockouts and overstocking.
  • Use Amazon's inventory management tools to streamline your processes.
  • Monitor your sales and adjust your inventory levels accordingly.

Business Funding and Management

Cash flow is a critical indicator of the health of your merchant account, and poor cash management can cause headaches and unwelcome surprises, halting growth and resulting in an unprofessional image if left unchecked.

A business line of credit provides online retailers with quick access to cash up to a pre-approved limit, allowing you to easily borrow capital for almost any business purpose, including marketing your brand, restocking inventory, and more.

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The best part of a business line of credit is that interest is only charged when you use the funds, and having one can help you build up your business credit.

Here are the pros and cons of a business line of credit:

Business Funding

Business funding can be a lifesaver for e-commerce businesses, especially when it comes to managing cash flow. A business line of credit provides quick access to cash up to a pre-approved limit, allowing you to borrow capital for almost any business purpose, including marketing your brand and restocking inventory.

This type of funding is especially useful for filling cash flow shortages and covering operating expenses. Interest is only charged on the used funds, making it a more affordable option than traditional loans.

You can use a business line of credit to improve your credit score, as limits are based on how you handle your account funds responsibly. However, be aware that various fees, such as origination and monthly maintenance, may apply.

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Business lines of credit can be based on collateral value, and interest rates may be higher than traditional loans. It's essential to carefully review the contract and understand the terms before signing on the dotted line.

To determine the best funding option for your Amazon business, consider your unique situation and goals. If you need assistance with managing cash flow, a business line of credit may be a good option. On the other hand, if you need a one-time, lump sum of cash and have predictable sales, a merchant cash advance may be more suitable.

You can also use a personal loan to fund your Amazon business, but be aware that business loans tend to have much higher lending limits than personal loans and may not require using your personal assets as security.

Here are some common funding options for Amazon businesses:

  1. Business Line of Credit
  2. Inventory Financing
  3. SBA Microloan
  4. Short-Term Loan
  5. Merchant Cash Advance
  6. Credit Cards
  7. Amazon Lending

A revolving line of credit is another option, providing access to a set limit of funds that can be used for short-term or long-term purposes. This type of funding can improve your cash flow immensely, as you have access to it whenever it's needed.

Poor cash management can cause headaches and unwelcome surprises, halting growth and resulting in an unprofessional image if left unchecked. Amazon FBA cash flow issues can jeopardize your performance, including being de-platformed (or at least losing visibility amongst the competition).

Staff Recruitment

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As your business grows, you'll need to consider hiring additional staff to help with tasks and shipping. With the right funding, you can delegate responsibilities and free up time to focus on other areas of your business.

Having extra hands on deck can help increase productivity and efficiency, allowing you to take on more orders and customers. This can be especially helpful during peak periods or when launching new products.

With funding, you can hire staff with the skills and expertise you need to take your business to the next level. Whether it's a sales team to help with customer acquisition or a logistics team to handle shipping and delivery, the right staff can make a big difference.

As your business grows, you'll need to consider hiring staff with different skill sets and expertise. This can include customer service representatives, marketing specialists, and operations managers, among others.

Difficulty Level

Getting financing for your Amazon business can be tough, especially if you don't have a solid plan in place.

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Having a detailed business plan is crucial, as it helps you demonstrate the financial projection of your Amazon business, making you look more favorable to lenders.

It's worth noting that banks generally work with brick-and-mortar businesses, making it harder for e-commerce businesses like yours to acquire bank loans.

A good business plan can make all the difference, so take the time to create a solid financial projection for your Amazon business.

Intriguing read: Farm Plan Financing

Tasha Schumm

Junior Writer

Tasha Schumm is a skilled writer with a passion for simplifying complex topics. With a focus on corporate taxation, business taxes, and related subjects, Tasha has established herself as a knowledgeable and engaging voice in the industry. Her articles cover a range of topics, from in-depth explanations of corporate taxation in the United States to informative lists and definitions of key business terms.

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