
06 Dec How to get an e-commerce Business Loan
Whether you’re just starting out, or you’re entering a new growth phase, your e-commerce business needs funding. It can be difficult to know the best option to get a little extra cash flow into your business and the first option you may consider is to take out a business loan. Loans can offer large sums of money, relatively quickly. You also have an extended amount of time to pay back the sum. However, it is worth noting that there are strict criteria that you must meet to obtain a business loan. It’s important to arm yourself with all the necessary information before you make any applications.
Ultimately, you are the person that they are trusting with their money. You need to demonstrate that you are trustworthy, and are worth investing in.
REQUIREMENTS
Before acquiring a loan, there is a lot of preparation required. Lenders don’t take applications at face value. It is increasingly difficult to meet lenders’ requirements. Therefore, it is key to ensure that you have a full plan, and all the information regarding your needs.
It is important to consider which lender is the best for your business. Bank loans are increasingly difficult to acquire. They typically turn down e-commerce businesses, as they are deemed too risky. Online lenders are less strict but have higher interest rates and smaller loan amounts on offer.

RISKS
Business loans are usually the go-to financing option for business owners. However, this isn’t necessarily because they are the best option. You need to be aware of the risks associated with signing up for a business loan.
Business loans, including bank loans, often have very high interest rates. This can hugely impact your repayment amounts. You will always have to pay back more than you borrowed. Ensure this is taken into account when budgeting for your business in the future.
Loans are typically secured against assets, this could include your business or your home. They also have lengthy repayment terms, so consider whether you have a contingency plan in place to avoid getting behind.
LOOK INTO OTHER OPTIONS, SHOULD A BUSINESS LOAN FAIL
Loans are not the only finance option available for e-commerce businesses. In fact, they are usually less suitable than other types of finance. Capital advances are a form of financing, but are not a loan and aren’t considered a form of borrowing. In a capital advance, a company purchases a portion of your future revenue and gives that cash to you now. Your business history is assessed by experts, and a proposed purchase figure is generated. You then repay that over an agreed period of time. You will need to make repayments. However, as the figure is generated based on your current business progress, the repayments are much more reasonable. At Yardline, we offer capital advances to businesses that are looking to expand. We also provide access to experts and tools that can help you to generate a business strategy for growth.

Contact us for more information about our Capital Advances