eCommerce Financing: Is It Right For Your Business?

eCommerce Financing: Is It Right For Your Business?

E-commerce has emerged as a major force in the market economy when it comes to potential and revenue generation. Businesses across the world have adapted to the idea and today what we see is buying and selling and offering of services happening online. Online business is a new truth of the modern digital age and it has taken over the traditional offline business style. Most of the business happens by the clicks of the mouse and online than offline. This is also manifested by the rise in eCommerce financing over the years.  Further, the force of e-commerce is such that hardly you would find a major business firm not having an online presence.

The one benefit of e-commerce is that new businesses can start online without the hassle that comes with setting up a brick-and-mortar shop, office-based business. You just need to create a website, develop your social login and banners, and start working on a Digital marketing strategy to build your brand. However, that doesn’t mean that online businesses run without capital. Though less than the offline business the online businesses have a certain need for channelization of funds. That is where eCommerce financing comes into the picture. Not, aware of it much? Let’s start by explaining this first.

E-commerce Financing: What It Is Exactly?

E-commerce financing is generally confused with the business of buying and lending money online. While that is an online finance business eCommerce financing has altogether a different sense. In general terms, it is like a business loan. Just as you arrange finance for your retail or offline business when you do so for online or web-based business it is called eCommerce financing.

That is raising finance for your online business to fuel its growth or start the process is what eCommerce financing means. Now the next question which is also the major one for this discussion is that is eCommerce financing right for your business?

It’s Right Or Not?

The answer to the question that whether eCommerce financing is good for your business or not lies in the answer to another question. Do you have enough finance to kick start and sustain your online business? If the answer is yes then no problem there is no point discussing eCommerce financing at this stage forget its right or wrong.

And if your answer is no, then there is no option but to opt for it if you are serious to carry the business. Further availing the eCommerce financing at right time for your business helps:

       To provide the right push at right time to fuel growth

       Supports the strategy of business expansion as per plan

       Helps the business to stand contemporary challenges

       Keeps you afloat amidst market uncertainties

These are just a few major advantages of availing the eCommerce financing for your business. Thus, it’s very clear that your business needs finance and if you don’t have it then eCommerce financing is the best option in hand. Next, up is the question of how to avail it? How can you get the financing? Let’s take a look at that. 

Ways To Get E-commerce Financing

Once you are clear about your plan to avail of eCommerce financing then logically next step is looking for ways to get. Here the idea should be to not put much liabilities on business due to the loan or financing. That is trying and opt for options that provide quick capital without much or high interest rate and flexible repayment options.

We have listed here some of the effective ways to get eCommerce financing for your guidance:

       The LOC: No we are not talking about Line of Control (LOC). Jokes apart LOC that is a line of credit is a good way to feed your need for eCommerce financing. Banks offer a line of credit for a certain specified amount based on the assessment of your business and financial records. Here you can borrow a loan as personal finance for your business from the bank where you have an account or where the business account of your firm exists. The interest rate here is less and the time for repayment is good enough.

       Credit Card Borrowings: This works as an effective method for short-term business needs and when the amount required is not too big. Generally, premium credit cards have a credit line extending to certain lakhs and here you get an option of interest-free repayment for 30-40 days or more. Further, you can break the repayment into small installments that are EMIs. The only drawback here is that the interest rate is a bit high.

       Business Loans: It’s a simple kind of option. You own a business and you need finance so apply for a business loan from banks and wait for getting it sanctioned. Here there are no catches get the loan and pay it back on time. The benefit to avail of this option is that you can take advantage of the government schemes and loans for the businesses. Thus, affordable finance is what it has for you.

       Crowdfunding: Probably the best option on the list is crowdfunding. You can run a campaign online to ask the crowd to contribute to your business to grow. However, you need to have a good reason to convince the people to make investments and contribute to your business. If you have that then that’s great because you can stand on crowd support get recognition and run your business with lesser liabilities at the head.


As we come to the conclusion of our discussion here we have tried to cover all the doubts related to eCommerce financing. We hope that now it is clear that what eCommerce financing is and how you can avail it for your business. Still, if there is something left untouched then don’t hesitate to bring it to our notice. We love hearing from you and answering your queries. Feel free to connect with us and share your questions.

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