Business Operations

Mercury Ecommerce Newsletter: Revenue-based Funding For Your Ecommerce Business

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By: Mercury
October 19, 2021

Welcome back to the Mercury Ecommerce Newsletter.

This month, we’re exploring revenue-based funding options for ecommerce businesses.

While tech startups can secure financing through venture capital and established companies can turn to traditional bank loans, new ecommerce businesses have traditionally had to bootstrap their own growth.

Luckily, a range of lenders now exist specifically dedicated towards funding ecommerce businesses that have some initial traction. Best of all, they offer capital to grow your business with financing structures that allow you to keep your equity.

What you need to know

Revenue-based financing is flexible in nature, making it a great option for growing businesses that have unpredictable revenue. Revenue-based lenders typically look for at least six months of sales history and a detailed plan to grow your business.

If successful, revenue-based lenders will offer you an investment in return for a small, usually single-digit, percentage of your sales for a set amount of time, or until they recoup their investment plus interest. The best lenders want to see you succeed and will act as a partner that supports you along the way.

Quality funding options

We’ve made a list of revenue-based lenders we think are high quality, what their capital can be used for, and their minimum requirements. Hopefully, you can use this list to find the right lending partner for your business.

Useful for

Min. Requirements

Wayflyer

  • Purchasing inventory
  • Marketing and advertising
  • 6 months of sales history
  • $20k monthly revenue
  • Hold your own inventory (no dropshippers)
  • Be incorporated in the U.S.

Payability

  • Purchasing inventory
  • Marketing and advertising
  • 3 months of sales history
  • $2k monthly revenue
  • Good performance metrics

Kickpay

  • Purchasing inventory
  • 3 months of sales history
  • $250K annual revenue
  • Use a third-party fulfillment center

Yardline Capital

  • Purchasing inventory
  • Marketing and advertising
  • Launching new products
  • Expanding into new markets
  • 6 months of sales history
  • $10k monthly revenue

ClearCo

  • Purchasing inventory
  • Marketing and advertising
  • 6 months of sales history
  • $10k monthly revenue
  • Be a corporation or LLC

SellersFunding

  • Purchasing inventory
  • Marketing and advertising
  • Launching new products
  • Expanding into new markets
  • 6 months of sales history
  • $20k monthly revenue
  • Company is in good standing

AccrueMe

  • Purchasing inventory
  • Marketing and advertising
  • 6 months of sales history
  • Demonstrate a profitable track record
  • Amazon sellers only

Uncapped

  • Purchasing inventory
  • Marketing and advertising
  • Hiring talent
  • 6 months of sales history
  • $10k monthly revenue
  • Have an online payment processor
  • Be an LLC in the U.S.

Outfund

  • Purchasing inventory
  • Marketing and advertising
  • 6 months of sales history
  • £10k monthly revenue
  • Have open banking
  • Have an online payment processor

Closing thoughts

If you have questions about any of these options, please feel free to reach out to us by emailing [email protected]. And make sure to keep an eye out for how Mercury will make it easier for ecommerce companies to access funding in the future.

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Disclaimers and footnotes

    Mercury is a fintech company, not an FDIC-insured bank. Banking services provided by Choice Financial Group, Column N.A., and Evolve Bank & Trust, Members FDIC. Deposit insurance covers the failure of an insured bank.