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E-Commerce Financing Options: What You Need to Know

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Financing your e-commerce business can seem complicated, but there are many options available to help you get your business the working capital it needs. From business credit cards to business lines of credit, we’ll explore some of the financing options available to web-based merchants to help you find the ideal funding solution.

Over the last decade, e-commerce has become an increasingly popular way for businesses to sell their products. The convenience of being able to shop from your home or office, 24/7 has made e-commerce a must-have for many businesses. But how do you actually get started?From finding the right software and payment platform, to finding the funding you need to make it happen, e-commerce business owners have a lot to consider. In this article, we’ll explore four of the most common types of financing for e-commerce businesses.

What is E-Commerce Funding?

E-commerce funding is a way for businesses that sell online to get the funding they need for business growth and operations. It’s a form of small business financing that helps e-commerce business owners grow and succeed by providing access to capital when they need it most, and it’s accessible to companies of all sizes.

E-Commerce Financing Options

There are several ecommerce financing options available to boost company cash flow in order to manage the cost of doing business.

Merchant Cash Advances

A merchant cash advance is a popular financing for e-commerce businesses, and they can be a great way to get the cash you need to grow your business.

These are an alternative to traditional bank financing. They’re usually offered by a third party in the form of an advance on credit card sales. You don’t have to pay any interest on the advance, but you do have to pay back the full amount within six months.


  • You get paid immediately, which is great for cash flow.
  • You don’t need to provide collateral or a proven track record of your credit score, which can be tricky if your business is a start-up or you have a bad personal credit score.


  • The speed and convenience of getting an MCA comes with an additional cost that is higher than traditional bank loans.
  • Short term solution – however you can also apply for renewals.

Business Line of Credit

A business line of credit is a type of financing that allows you to borrow the money you need, when you need it. It’s a revolving line of credit, which means that you can borrow more money when you need it, and then pay off what you borrow later when cash flow allows.


  • You can get access to capital quickly and easily
  • Interest is only paid on the amount withdrawn.
  • Because it’s an ongoing revolving amount, it’s easy to use your available funds in the bank account as needed without having to reapply every time you need more money.


  • Approved amounts can vary depending on your credit score and maximum amounts available may be lower than other financing options .


Crowdfunding is a financing option for an e-commerce business that allows entrepreneurs to raise money from a large group of people. This can be done by offering rewards, such as products or discounts.


  • Crowdfunding can help you raise money quickly, without having to wait on approval from investors or banks.
  • You don’t have to make large payments back in order to start your business, as some other funding options require.
  • Crowdfunding is an easy way to engage with customers in an authentic way—you can get their feedback on what they want from your new product or service before it’s even launched!


  • Not all crowdfunding platforms are created equal—some are better than others at handling fraud and scams, so you might want to research the platform before choosing one that fits your needs best!
  • The biggest con is that not everyone who supports your campaign is going to buy something from you right away—and some might not ever buy anything at all!

Venture Capital

Venture Capital involves outside investors purchasing a percentage of the company for a sum of money and/or requesting a royalty on sales made.


  • You can leverage the experience and network of the investors to help grow the business.
  • A large sum of money can be raised in a single instance.
  • No monthly payments required.


  • It can be challenging to find someone who will invest in your business.
  • You dilute ownership of your business.
  • You have to answer to investors in the event of lack of growth and take into consideration their opinions.

Financing to Drive Your Business Growth

If you’re a small business owner that needs more working capital to reach your business goals, Merchant Growth provides fast and accessible financing that can help e-commerce businesses. Whether you need to purchase inventory, invest in digital marketing or refresh your website, there are financing solutions that will meet your business needs.

Merchant Growth offers fast approval and funding times with flexible repayment options. We have helped thousands of small businesses across Canada to grow their business and we are here to help your business too! Apply now!

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