About online pet store financing
Online businesses that specialize in pet supplies are in high demand. Pet owners are always looking for the latest healthy foods, toys, medications, and other supplies for their furry family members. This means keeping up with trending accessories and stocking up on the latest products. Online pet store financing will allow you some breathing room when it comes to making sure you have the capital on hand to pay the upfront costs associated with stocking up on that much needed inventory.
With enough cash flow, you’ll be able to pay for bulk orders so you can make sure you never go out of stock. You’ll be able to launch that new product, ensuring that your store sells the best tools available. In order to keep up with the competition, you’ll also need funds to invest in marketing so potential customers make their way over to your page. Pet store financing allows you to do all this and more, but it’s important to find a funding option that suits your needs and doesn’t push you into debt.
Pet store financing opportunities
Researching the many different types of funding can be overwhelming. Each one is unique, and there are some you won’t qualify for. However, do your best to minimize costs, optimize your budget, and pick the financing solution that will most benefit your business. Figuring out your budget and priorities ahead of time will help you choose.
Bank loan
A bank loan is when you borrow a lump sum of capital from a bank for business-related expenses. You can use a bank loan as you choose, such as to pay for inventory procurement and storage, platform fees, or marketing costs. While this is certainly a benefit, bank loans can be difficult to qualify for. Banks aren’t used to working with eCommerce businesses, so if you’re a newer seller or haven’t built up your credit score, you might not be eligible.
The tough requirements do have a flip-side, which is a lower interest rate. However, you will still need to pay off the loan in fixed repayments, usually every month. For online pet stores with fluctuating sales or seasonal products, this can cause some strain on your budget. You may also have to put up collateral to qualify for the loan.
Revolving line of credit
A revolving line of credit is useful for many businesses. Similar to a credit card, you gain access to funds as you repay the loan. It’s meant to cover emergency costs, last-minute purchase orders, or simply to maintain day-to-day expenses. Due to low loan limits, a line of credit isn’t typically meant for large purchases. If you’re planning to expand, you’ll likely need to consider a different loan
One of the biggest perks of a line of credit is its lenient requirements. That makes it accessible to most businesses. If you’re trying to boost your credit score, this loan type will help you build credit history until you can qualify for a better loan, too. You can use the funds at your discretion, as the lender won’t control what you spend it on or when you do.
There are, of course, downsides, too. Due to the flexibility of this loan, they consider you a higher risk, so you’ll have to pay higher interest rates. The low borrowing limit can hold some businesses back from making expensive purchases. Depending on the lender, extra fees may be involved. Read your contract carefully before signing.
Inventory financing
Inventory financing is a type of funding that covers your inventory expenses. Your loan will be secured by the inventory itself, so you won’t need to risk your other business assets. When trends are coming and going at the speed of light, you need to stock up on inventory to meet demand. This loan will make sure you don’t fall behind.
The eligibility requirements for inventory financing are often lenient, due to the collateral involved. It’s a fairly quick and easy application process, so you can gain funds when you need them instead of waiting weeks or months. Plus, with a full stock of inventory, you can strategize with ease when it comes to meeting demand and forecasting.
Keep in mind that this type of loan may require regular evaluations from the lender. Some lenders have a loan minimum, too, which can be too expensive for some businesses. If you obtain funding, it might not be the full amount you need, so you’ll need to consider if you can afford to pay the difference and the large monthly payment.
Business grant
A business grant is offered to eligible businesses by private organizations, the state, and the federal government. You won’t have to repay the money they give you, but they do have strict spending guidelines you have to meet. For those who can’t afford to repay a large loan, then this is the route to take. Startups and mature companies are welcome to apply.
Grants are attractive to many businesses because you don’t have to repay them. You can use a grant to start up your operations or expand your thriving company. As long as you have the time and energy to do the research and fill out the often lengthy proposals, it can be beneficial to your business. Plus, if you’re approved, you’ll gain much-needed credibility.
While it may be something to strive for, grants are very difficult to obtain. It’s a long and tedious application process with high competition and low approval rates. Plus, grants are often earmarked for specific types of businesses and business-owners, so there might not be one out there that’s a good fit for you. It’s only a short-term solution, so consider if it fits your needs before going through the long process.
Revenue-based financing
Revenue-based financing is when a funding provider gives you a set amount of funding in exchange for a percentage of your future profits. Due to this arrangement, repayment can take a long or short period of time, depending on your sales volume. This is a good option for those who don’t qualify for regular loans and would like some guidance in business operations. It can also be a good solution for businesses with seasonal or fluctuating sales, who struggle to stick to a set payment schedule.
With revenue-based financing, the funds become available quickly. You don’t need to go through a long application process, and a credit check is not always necessary. They’ll simply take a look at your business history to make sure you are bringing in enough revenue to make the payments they require. Revenue-based financing is often more costly than other types of funding, so take that into account before signing on for this type of funding.
Merchant cash advance
If you’re in need of quick funding, a merchant cash advance might be ideal. The repayment schedule is flexible, according to your needs and business type. You’ll repay the loan with a percentage of your future debit and credit card sales. It’ll supply you with the cash you need in order to meet demand or boost your marketing budget.
The eligibility requirements for a merchant cash advance are lenient compared to other loans. You’ll need to show that you bring in consistent revenue through credit and debit card sales. Credit scores aren’t always needed in order to obtain funding, and neither is collateral required. So, if you’re starting up or have made poor business decisions in the past, then this loan is doable. However, the lenient requirements come with a high cost of capital. Plus, if you fail to make payments, then the lender may have the right to remove funds from your account, regardless of sales volume.
Invoice financing
Invoice factoring is meant for businesses that have outstanding invoices. Expenses can’t wait for the customer to pay that bill, so turning to a factoring company may be beneficial. You’ll sell your invoices to the factor at a discount, and they will provide you with the funds you need. The discount fluctuates, depending on the company you’re working with.
If you choose invoice factoring for your pet store financing, you’ll get access to funds quickly. However, it is often more expensive than interest on a regular loan, so you’ll have to calculate the costs and decide if it makes sense for your needs. You can receive up to 90% of your invoice’s worth up front, which will provide you with funding to manage your daily operations and keep up with demand.
Factoring companies can include fees in their contracts that eat into your profits, and you may be held responsible if your customer fails to pay their invoice. So, read your contract and consider the customer’s history before passing them off on someone else.
8fig for online pet store financing
There’s a better solution out there for online businesses in need of pet store financing. If you want the power to plan, fund, and manage your operation all from one convenient platform, check out 8fig. In addition to funding, 8fig offers an eCommerce operating system complete with a number of tools to help you grow your business. It’s cash flow friendly and made to help eCommerce businesses reach their full potential.
Why use 8fig for online pet store financing
Made just for eCommerce brands, 8fig understands that you have unique funding needs that are based around your supply chain. That’s why they provide you with continuous, personalized, and flexible funding so you can grow with confidence.
How 8fig works
1. Apply
The application process is fast and easy. Answer some questions about your business and sales, and then provide basic information about your supply chain stages and expenses.
2. Connect your store and bank account
In order to provide you with an optimized Growth Plan, 8fig requires that you connect your store and bank account to the 8fig platform.
3. Get funded
With 8fig, you can get funded in just days. Since 8fig funding is continuous, you receive capital infusions into your business right when you need it.
4. Make adjustments
If something changes and you need to adjust your payments, remittance schedules, or even funding amount, you can always do so thanks to 8fig’s flexibility.
5. Grow your business
All that’s left to do is sell, sell, sell. With 8fig, businesses are able to scale 4X as fast.
What 8fig offers in addition to financing
8fig offers online pet stores like yours more than just a great funding solution. We provide you with the tools you need in order to grow. You get built-in cash flow optimization alongside supply chain planning and mapping tools, sales analytics, freight booking, and more. While we don’t take equity in your business, we’re your business partner, so we help you achieve long-term growth and success.
With all the funding, tools, and resources you need in one place, you’ll finally reach your full selling potential.
Who is eligible for online pet store financing from 8fig
Compared to many banks and funding solutions, 8fig has lenient requirements. Your eligibility isn’t determined by a high credit score and lengthy business histories. We don’t even need to check your credit history, instead basing our funding eligibility on your sales revenue.
The application process is quick and simple. If approved, you can obtain up to 90% of your supply chain costs, which will take the pressure off of your budget. Growing won’t seem so difficult with necessary cash flow at your fingertips. If you have been selling a product online for at least a year, have an annual sales revenue of $100,000 or more, and have made an average of $8,000 in revenue per month for the last three months, 8fig encourages you to apply.
How to apply for 8fig financing
It’s easy to apply for 8fig financing, and it only takes a few minutes. Simply answer the questions and follow the prompts and you’ll get funded in no time!