An online store: how is inventory financed?
An online store’s file is presented from the sales that reach the business account, payout after payout. The lender reads those deposits, and decides.
Choose my amountThe answers
- Can an online store present a file?
- Yes, the file can be presented from the deposits in the business account. The online store’s settlements arrive there and show in the statements, like those of an in-store terminal.
- My sales go through a platform: what does the lender read?
- The payouts the platform deposits in the business account, month by month. Those deposits are what counts, not the sales total the platform displays.
- Can inventory or advertising be financed?
- Yes, as working capital: goods and advertising are paid for before the sales. The lender sets the amount and its cost in its written offer.
- My sales are concentrated in a few periods of the year: is that a problem?
- Not in itself. The lender reads the peaks and the dips in your statements; it is the whole period that counts.
- I also sell to businesses: are there other options?
- Yes: invoices owed by businesses can go through factoring. Sales to individuals, paid at the time of the order, count as deposits.
What the lender looks at
- Actual deposits, month by month
- The online store’s payouts, as they reach the account.
- Trend over the period
- Sales that climb from one period to the next support a larger stock.
- NSF cheques
- A payment returned to a goods supplier weighs on the file.
- Payments to other lenders
- An advance already running on online sales counts as a commitment.
$0 upfront · 7% only if funded
An intermediary, not a lender.
The lender sets the final amount and its cost in its written offer.
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