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October 19, 2021
Mercury Ecommerce Newsletter:
Revenue-based Funding For Your Ecommerce Business
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.
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.
And if you learned something new in this newsletter, please consider sharing it with someone who may find it helpful.
The Mercury Team