eCommerce Funding Options for Growing Your Online Business

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Table of Contents

• ECommerce Financing Options
• Key Takeaways 
• Frequently Asked Questions

In the last decade, the Australian eCommerce market has experienced an extraordinarily high rate of growth. The far-reaching effects of the COVID-19 pandemic have compounded this. There is no better time to consider growing your online business. In 2020, Australians spent approximately $50.46 billion online, a 57% increase from 2019 levels. This growth will eventually stabilise as the government lifts restrictions. However, Australian shoppers still expect their online purchasing habits to remain higher than they were prior to the pandemic.

Not all business types are able to integrate online sales into their business model. However, those who can have the opportunity to tap into a high-growth market. Indeed, an online presence can increase awareness about your products and your brand among new, global, audiences.

Ecommerce financing solutions comprise an array of funding options. These are suitable for businesses that receive a proportion of their revenue through online sales. Examples of such businesses typically include online retailers and marketplaces, subscription-based businesses, SaaS, or wholesalers. To choose a suitable eCommerce financing solution, you will need to determine what category your business falls under. 

ECommerce Financing Options

Business Cash Advance

A business cash advance is a form of business loan that allows you to ‘sell’ your future revenue in exchange for an advance of capital. This allows a business to forecast seasonal fluctuations in demand and increase the capacity of its infrastructure or stock in preparation. The capital is then repaid with interest to the lender. The lender then takes a percentage of your sales at an agreed-upon schedule until the advance is paid off in full.

Invoice Finance

Invoice Finance is when you borrow money using your unpaid invoices. There are various types of invoice financing available. This depends on your specific situation. Simply put, this allows you to unlock cash owed to you from unpaid invoices in order to speed up your cash flow. This gives you the freedom to grow your business faster.

Asset Finance

Asset financing comes in various forms. If you are looking to increase your physical resources but cannot afford a significant one-off purchase, you may consider a hire purchase – which allows you to pay off your equipment in regular instalments. Similarly, equipment leasing allows you to rent equipment for a specific period of time. If, on the other hand, you have an abundance of physical assets but a limited cash flow, asset refinancing may be the most suitable option for your business. 

Grants

Thousands of grants are available to businesses across Australia at a federal, state and local level. Some of these are specifically targeted toward businesses operating with a digital presence. These include the NSW Export Assistance Grant and the Empowering Business to Go Digital Program. These opportunities are diverse, however, they are somewhat complicated. However, you can use the Swoop platform to access assistance from their expert team who will assist in finding the right option and support you throughout the application process.

Key Takeaways 

In an increasingly digital global marketplace, businesses are having to invest in their tech infrastructure in order to remain competitive. Whether your business is venturing into an eCommerce revenue stream for the first time or looking to expand your stock to prepare for the Christmas online sales boom, Swoop has the funding options to help you do so. Get in touch with one of Swoop’s funding experts today. 

Frequently Asked Questions