Merchant Cash Advances » Ecommerce Business Advance

Ecommerce Business Funding

Man and woman in business attire engaged in conversation representing eCommerce business.

By Richard Wilson

Last Updated on

Estimated read time: 7 minutes

If you need funding to enhance your ecommerce business, improve your website, or simply keep the lights on, MCashAdvance ecommerce advances are a fast way to get the funding you need.

We provide ecommerce advances ranging from $5,000 to $900,000 to help grow your ecommerce business. We fund all types of ecommerce businesses, including online retailers, subscription box services, digital platforms, and ecommerce stores.

Securing financing from banks for ecommerce businesses can be a lengthy and challenging process, often taking weeks or even months to obtain, with strict approval requirements, extensive paperwork, the need for collateral, and a preference for businesses with perfect credit.

An advance from MCashAdvance for ecommerce businesses offers simpler approval, no paperwork or collateral, the possibility of receiving funds within 24 hours or up to 3 days, and accepts poor credit scores with no hard credit check that won’t impact your credit score upon application.

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MCA Feature Offer Details
MCA Amounts: $5,000 – $900,000
Factor Rate: 1.1 – 1.5
Holdback 10 – 25%
Repay In: 3 – 18 months
Funding Time: 1 – 3 days

Applying is easy, free, and won’t impact your credit score.

Get the eCommerce financing you need today.

What is an Ecommerce Business Advance?

An ecommerce business advance is a type of merchant cash advance (MCA) created for ecommerce businesses, including online retailers, subscription box services, digital platforms, and ecommerce stores.

Your ecommerce business sells a portion of its online sales to MCashAdvance in exchange for an upfront lump sum of funds called a cash advance.

In exchange, we will deduct a small percentage of your daily online sales revenue until the advance is fully repaid.

Emergency Funding for E-commerce Businesses

In the e-commerce sector, specific financial needs often emerge, closely tied to the operational aspects of running online stores, such as inventory management, digital marketing, and customer experience enhancement. A cash advance for e-commerce businesses provides targeted financial support, quickly accessible and tailored for the unique requirements of online retail.

E-commerce Business Financing for Any Purpose

Here are 17 common ways a cash advance can be utilized in your E-commerce:

  1. Inventory Diversification: Use the funds to broaden your product range, including niche items or exclusive online-only merchandise, to attract a wider audience.
  2. E-commerce Platform Optimization: Invest in enhancing your online store’s platform for improved user experience, including faster load times and intuitive navigation.
  3. Digital Marketing and SEO Strategies: Direct the capital towards advanced digital marketing campaigns and SEO optimization to increase online visibility and traffic.
  4. Customer Relationship Management (CRM) Systems: Finance the implementation of sophisticated CRM systems to manage customer interactions and personalize the shopping experience.
  5. Mobile App Development: Use the advance to develop a mobile app for your e-commerce store, providing customers with a convenient shopping experience on their smartphones.
  6. Cybersecurity Measures: Invest in robust cybersecurity solutions to protect your online store and customer data from threats and breaches.
  7. Automated Inventory and Fulfillment Solutions: Direct the funds to automation technologies for inventory management and order fulfillment to streamline operations.
  8. Product Photography and Videography Equipment: Use the capital to acquire professional-grade equipment for high-quality product photography and videography.
  9. International Market Expansion: Finance the expansion of your e-commerce business into international markets, including localization of your website and marketing materials.
  10. Subscription Service Development: Use the funds to develop subscription-based services or products, creating a recurring revenue stream.
  11. Customer Feedback and Review Platforms: Invest in platforms that facilitate customer feedback and product reviews, enhancing trust and engagement.
  12. Packaging and Branding Materials: Direct the capital towards custom packaging and branding materials to enhance the unboxing experience and brand recognition.
  13. Return and Exchange Management Systems: Finance the development of efficient return and exchange management systems to handle customer returns smoothly.
  14. E-commerce Analytics Tools: Use the advance to implement advanced analytics tools to gain insights into customer behavior and sales trends.
  15. Affiliate and Influencer Marketing Programs: Invest in affiliate and influencer marketing programs to leverage social proof and expand your reach.
  16. Sustainable and Eco-friendly Product Lines: Use the funds to introduce sustainable and eco-friendly products, appealing to environmentally conscious consumers.
  17. Live Chat and Customer Support Software: Direct the capital to live chat and customer support software to provide real-time assistance and improve customer service.
Female e-commerce business owner carrying boxes in warehouse.

Internet Shop Business Advance Example

Suppose you need a $25,000 e-commerce merchant cash advance to redesign your E-commerce website and extend the functionality of your shopping cart. If you are approved for $25,000 and receive a funding offer with a factor rate of 1.1 and a daily credit card holdback percentage of 15%, your total repayment amount will be $25,000 (Advance Amount) + $2,500 (Fees) = $27,500.

Advance Amount$25,000
Factor Rate1.1
Avg Monthly Credit Card Sales$20,500
Holdback Percentage15% of Daily Credit Card Sales
Daily Credit Card Sales$680 per day (approx.)
Daily Payment Amount$102 per day (approx.)
Repayment Term (in days)Approximately 269 days
Repayment Term (in months)Approximately 9 months
Total Repaid (including fees)$25,000 (Advance Amount) + $2,500 (Fees) = $30,000 

Online Store Funding Eligibility

To be eligible for funding from MCashAdvance you must meet these 5 criteria:

  1. Your e-commerce store must have been operational for at least 6 months.
  2. Your online business should be generating a minimum of $100,000 per year in revenue.
  3. As the e-commerce business owner, your personal FICO score needs to be 550 or higher.
  4. Your e-commerce platform must utilize a business checking account.
  5. You, as the e-commerce business proprietor, must be over 18 years of age and a U.S. citizen

How to Get an Ecommerce Advance from MCashAdvance

To get an advance for your ecommerce business from MCashAdvance, follow these 5 steps:

Step 1: Begin Online Application: Click Apply for an MCA to begin.

Step 2: Fill in Your Details: Provide information about your ecommerce business and personal details as the owner of the business.

Step 3: Submit Bank Statements: Upload the last three months’ bank statements of your ecommerce business.

Step 4: Await Review Process: Our underwriters will review your cash advance application to determine funding eligibility.

Step 5: Receive Offer and Funding: Once you get a funding offer, review it. If it suits your business needs, accept it, sign the MCA agreement and the funds will be deposited into your business account.

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or learn more about business cash advances

Ecommerce Business Funding FAQs

Can e-commerce businesses get an SBA loan?

E-commerce businesses can potentially qualify for SBA loans, with options such as the SBA 7(a) Loan and SBA Express Loan available to provide financial assistance tailored to their specific industry.

Can e-commerce businesses get invoice financing loans?

E-commerce businesses, especially those with a B2B component, may issue invoices for bulk orders and could potentially qualify for invoice financing.

Do banks lend to e-commerce businesses?

Banks typically demand that e-commerce businesses have at least two years in operation, a FICO credit score of 680 or higher, three years of cash flow records, and a well-structured business plan outlining fund usage. Meeting these criteria increases the likelihood of banks approving a loan for your e-commerce venture. If you can’t meet these standards, alternative lenders like MCashAdvance may offer more accessible eligibility criteria for obtaining financial support for your online retail business.

How does e-commerce equipment financing work?

E-commerce businesses can invest in equipment like computer servers and use the computer servers as collateral to secure financing. At MCashAdvance, you can obtain computer servers using our advances without having to use the equipment as collateral.

Can e-commerce businesses get business lines of credit?

Certainly, e-commerce businesses can access business lines of credit from most lenders if they meet certain qualifications related to the e-commerce industry. These typically include maintaining a FICO credit score of 660 or higher, having at least one year of experience in e-commerce, and consistently generating monthly e-commerce revenue exceeding $5,000.

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