Small Business Loans for eCommerce: Everything You Need To Know
Online shopping is worth over £500 billion in the UK. 87% of all retail purchases are made online, with millions of people preferring to click to pay. Whether you run a small Shopify site, or have an established database of hundreds of online products, Capify funding can help you pay for whatever you need to sell more. Give the page a scroll to find out more about getting a loan for ecommerce business. Both of our flexible, affordable finance solutions can work seamlessly with your online business. Payment is fast, so you’ll be ready to spend in a few days! Repayment is always manageable and structured around how and when your eCommerce business earns. It’s flexible finance that moves with your business’ growth.
Table of Contents
The Evolving eCommerce Landscape: Key Trends
eCommerce has continued to get bigger and bigger in the UK. We love having products dispatched to us the same day and delivered straight to our door or workplace. It’s convenient, easy, and getting simpler every year as eCommerce sites continue to innovate their service. While some products and sectors will always have a high street presence, many retailers have moved totally online, reducing their overheads and increasing their sales drastically in the process.
Some fast UK eCommerce facts:
- eCommerce sales in the UK were valued at £586 billion in 2017. £145 billion of those were business-to-consumer (B2C) while £133 billion were business-to-business (B2B).
- The top 5 products bought or booked online in the UK are – clothes and sports goods, furniture and toys, hotels and holiday cottages, flights, and event tickets.
- A 2018 survey showed we spend 1 hour and 20 minutes thinking before we buy online, on average.
Merchant Cash Advance For eCommerce
The Merchant Cash Advance is a truly flexible and affordable way to raise cash for your online retail business. You can raise between £3,500 and £150,000 for essential upgrades, improvements, and developments. Every time a customer makes a purchase through your site, a small percentage will go towards repaying your advance. You only repay when cash comes into your business through your online transaction terminal.
eCommerce Business Loan
Capify Business Loan gives online businesses the opportunity to raise from £5,000 to £500,000. Repayment is just as flexible as the Merchant Cash Advance – a small percentage is deducted from your daily or weekly transactions to go towards repayment. When you earn more, you’ll pay more off.
What Can I use an eCommerce Loan For?
eCommerce loans are a great way to boost your immediate cash flow
and make big improvements to how you do business.
Better Packing and Dispatch
Your customers’ experience doesn’t end when they click ‘Buy’. Speed up dispatch and delivery, sort out sustainable packaging, and keep your online customers happy.
Make Browsing Even Easier
Create a sophisticated user experience that personalises browsing and remembers what your customers like to see. They’ll soon be adding more items to their basket!
New Product Ranges
Style and decor can be just as important as the food you serve. Make it cosy, Instagram-ready, luxurious, modern, industrial – whatever you want!
Types of eCommerce Business Loans
Capify provides business loans and financing options to help jazz up your eCommerce business. Discover the different types of finance we offer below:
Secured business loans
This type of loan is secured against something you own. It could be a vehicle, property, or equipment. If you can’t make repayments, this will be taken to cover the costs instead.
Unsecured business loans
An unsecured business loan is the opposite of a secured loan. You don’t have to put any of your own stuff down to get the cash.
Merchant Cash Advance
The Merchant Cash Advance is perfect for eCommerce. Your business will get a lump sum of cash, and then repay it through a small percentage of your customers’ card payments. Basically, you won’t notice the payments coming out at all. There are other options too. Some eCommerce business owners can get government grants, use an overdraft, credit cards, or asset finance. Some are more expensive than others though, so always look around for the best deal before you commit!
Fixed and Flexible Payment Options
Want to know exactly what your regular payments will be? Or does the thought of a big monthly payment make it seem too expensive? Flexible repayments can be easier for eCommerce to manage because they change as your business earns more or less.
If Christmas means jam-packed with online orders, but January and February are slow, flexible finance will mean you repay less during those quiet periods and more when you’re busy.
Need an eCommerce Loan In a Hurry? Get Fast Finance
Does the thought of a big monthly repayment make you want to forget about online store loans? Capify repayments are always flexible, making it easier for online businesses to manage as their revenue naturally fluctuates. If you have a really great week, you’ll get closer to paying off your full loan. If you have a slower week because of seasonal differences, you’ll repay less to keep cash flow healthy.
Our eCommerce Business Loan Can Be Repaid In 3 Ways
The Daily Repayment
With this option, we’ll take a very small repayment every single day until the finance is paid back. It’ll help you to manage your cash flow.
The 5 Day Repayment
This option is repaid between Monday – Friday. It’s the perfect solution for businesses that are closed during the weekends.
Once a Week
With this option, you’ll repay your loan just once a week.