Working capital is a problem that can be easily fixed with a Capital Advance Loan. Find out how to get a capital advance loan for Amazon sellers right here.
There are over 350 million products sold on Amazon, making it the world’s largest online retailer.
Are you one of the millions of business owners currently selling products on the platform?
You could probably guess that number was high, but the truth is that your competitors are more abundant than you thought. Your products are in a long list of others no matter what you’re selling.
But there are actions you can take to grow your small business with the right funds laid out.
Working capital means you can ramp up your business efforts, and a loan for Amazon sellers makes this growth opportunity accessible. We are here to get you set with the funds that will provide you with the capital advance you need to succeed.
Learn more about working capital and how the Capital Advance loan is a must for your small business.
What Is Working Capital
As an eCommerce merchant, how often do you find yourself relying on sales to pay off an upcoming bill, cover your employee’s paychecks, or fix a last-minute emergency?
Many sellers are in the same boat. What’s missing in this case from your business operations is a steady influx of working capital.
Working capital is the money available to you immediately to cover short-term, day-to-day commitments. You can find your working capital, also known as networking capital, with a simple formula:
- Current Assets – Current Liabilities = Working Capital
Working capital affects every part of your business and can impact your company’s growth or its demise. As a business owner, you need to spend money to make money.
Yet, that equation can tip into negative terrain and end with the business owner not having enough assets to cover its costs.
Working capital is the answer to many of your business’s cash flow struggles. The more you have available to cover business operations, the stronger your company’s financial health.
Money to Aid Your Growth
Your main priority as a business owner and Amazon seller is clear: grow your business no matter what.
Over 11,000 sellers have joined Amazon UK in the few short weeks of 2021 so far. You can imagine how large that number grows to become throughout the year.
Working capital is not only to cover operational expenses or emergencies that pop up. It is what takes your eCommerce brand to the next level.
You have competition no matter what goods you’re selling. But working capital gives you the competitive advantage to take on the saturated eCommerce market. Having positive working capital allows you to put the necessary funds into your brand awareness, product lines, and employee operations.
Stocking Up on Your Products
Inventory tends to be a primary challenge amongst online merchants. You need enough stock to cover the current demand of customers. You also need enough products ready for seasonal surges. But you also want the ability to keep up with product trends that you could capitalize on.
You can use working capital to boost your inventory while also pivoting to other products when the market calls for it. Having a large capital advance grows your inventory power.
Increasing Brand Awareness
Available working capital gives you the funds to focus on marketing efforts and make a stronger splash in the eCommerce space. Marketing efforts grow your brand awareness, so you are consistently reaching customers.
Social media advertisements, email campaigns, and content shares are a few examples where you can use additional funds. Your brand deserves to be known by clients. The only way to ensure that is by powerful marketing.
Use working capital, a business loan, or other strategies to reinforce your brand awareness efforts.
Growing Your Team
An influx of capital makes hiring an extra team member or working with a freelancer accessible. Working capital allows you to grow your team and business strategy.
Imagine what one new team member could make possible for your Amazon store. Outstanding marketing, top-notch customer service, and product organization are a few that come to mind!
A capital advance is a fantastic way to build a stronger team and put more workforce behind your brand.
Options for Boosting Working Capital
So you understand the power of working capital and what it makes possible for your eCommerce business. But how can you increase that number so you can build your brand?
There are a few options that work for eCommerce merchants to receive a capital advance.
A business loan is a traditional method of supplying a company with short-term funds. Loans call for the business owner to repay on a regular schedule and with fixed interest rates. Those rates can sometimes make a loan inaccessible for a small business that can’t see what its future revenue holds.
Some loan institutions find digital stores an unreliable business to support. You need to show a healthy profit history, credit balance, and other items to show your business as a credible entity.
As an Amazon seller, you have access to Amazon’s lending services. Amazon offers a range of financing amounts, repayment timelines up to 12 months, and no required credit score. However, Amazon stipulates that funds received must be used on Amazon inventory only.
This means you can’t access many benefits of positive working capital. The limitations it presents are major.
The Benefits of a Capital Advance Compared to a Loan.
The list of available options for boosting working capital is long. It includes other opportunities like credit card financing, lines of credit, and Amazon store factoring.
Another advantage is that Payoneer takes a % of future receivables, rather than a fixed amount per month, there is no interest applied to the advance, they do not take any personal guarantee/security, and there is no credit check/effect on credit score.
Payoneer’s Capital Advance is a great loan for Amazon sellers that has their specific needs in mind. The Capital Advanced infuses your business with extra funds to build your marketing, grow your team, or expand your inventory.
Want to develop a new product that fits current trends? How about starting a specific paid social campaign to advertise a launch?
The Capital Advance encourages you to cover your day-to-day needs while also investing for future growth. All your options become possible to stand out amongst the competition and build longevity.
Sales performance determines the amount of this loan for Amazon sellers. You can also receive increased amounts as you prove your success in working with Payoneer.
You receive instant funds without credit checks. You repay gradually as Payoneer takes a manageable percentage of your Amazon sales. You also pay only one low fixed fee at the start of your advance.
There is no fine print for the Capital Advance loan through Payoneer. This makes it a powerful loan for Amazon sellers to take their business to the next level.
Expanding Your eCommerce Store Today
Working capital is one of the strongest ways to amplify your eCommerce store. A positive influx of money means the ability to stand out against your competitors. You can also increase your inventory and meet market demand with a quicker turnaround.
Looking to start your Capital Advance growth trajectory? Our team is here to help. Learn more about the loan for Amazon sellers and get you set for success with us.