Choosing the Right E-commerce Funding Partner
Angelique Pollock
Copywriter
WordPress
SellersFi
How do you know which is the right e-commerce funding partner for you? Here are five reasons to choose SellersFunding, backed up by real results from brands and sellers like you.
We know what you’re thinking. “Is this going to be another one of those articles every company publishes as an excuse to soapbox about how great they are?”
In a way, yes. That’s exactly what this is. Because the truth is, finding a trustworthy e-commerce funding partner — one who understands where you are in your business today and where you want to take it tomorrow — is an extremely challenging task.
Online retailers have an ever-growing list of funding options to choose from, each one claiming to be better than the last. We want to help you cut through the hype and get clear on the things that make sense for your growing business as you continue your search for the best e-commerce funding provider.
If it seems like that might be us, great! But to keep things fair, we’ve decided every item on this list must be backed up by actual experiences from our e-commerce clients — real DTC brands and marketplace sellers who have seen tangible results from working with us.
With that in mind, here are some things that set us apart here at SellersFunding.
#1. We know e-commerce
Whether you’re a DTC brand looking to secure your largest purchase order yet or a marketplace seller planning ahead for Q4 inventory — we’ve been where you are.
At SellersFunding, every member of our founding team has either a finance or e-commerce background — as does the majority of our global team. When we set out to create SellersFunding, we knew firsthand just how large a gap we were attempting to fill.
Despite a steady stream of fintech advances in the second half of the 2010s, banks remain top of mind when it comes to business financing — and it makes sense. For decades or even centuries, if you needed a business loan, your local bank was your first stop.
Today, it’s not so easy. Even sellers who have existing relationships with their banks walk away feeling unheard and misunderstood after approaching a bank for funding. Many banks just can’t comprehend the speed at which successful e-commerce businesses move, not to mention the extremely unique sales and inventory challenges they face.
Then there’s the process itself. Getting a loan from a traditional bank can be a long and tedious process. One that doesn’t typically end in a successful loan disbursement for e-commerce businesses.
Unlike banks and traditional funding partners, our solutions are purpose-built for scaling e-commerce stores. And we don’t believe in unnecessary red tape.
“I was looking to expand and scale my business. The problem is, with e-commerce, you can’t just go to a bank and show them the numbers. I needed new ways to get funding for my Amazon store.” — Jon Drummond, Owner, Drummond Gaming & Tech
With the help of our team at SellersFunding, Jon Drummond was able to bridge the gaps between sales and inventory to continue scaling his sales, which had just reached $1M. But Jon didn’t want just any funding provider. He wanted an e-commerce funding partner who would help him track his store’s performance as his sales grew.
Today, Drummond Gaming & Tech has achieved a 54% net sales percentage. Every week, Jon can easily track his performance and valuation in the same place he accesses his funding data.
And it’s just the beginning. In addition to our popular Working Capital and Daily Advance funding solutions, there’s the Digital Wallet which uses the real Mid-Market Rate to help sellers save on currency and exchange fees when sending or receiving funds from over 180 countries.
In one central system, sellers have everything they need to track, fund, and execute a successful growth strategy.
#2. Best-in-class funding products for every situation
When we entered the world of fintech, we never could have imagined the market ebbs and flows we’d be privy to. The fact is, there’s a shift in the world of fintech not dissimilar to the one we’re witnessing in e-commerce right now.
The latest data from Deloitte indicates that fintech investment has decreased by nearly 25% from $69.6 billion to $52.9 billion year on year. Just like e-commerce, fintech is undergoing a necessary market correction.
As the market continues to evolve, funding providers will come and go. The good news for sellers is that it will be much easier to differentiate between those who are in it for the long game, versus those seeking quick returns.
Once you’ve made the decision to choose an e-commerce funding partner specializing in e-commerce, the next step is to focus on the range of products and the level of experience you’ll get access to.
Because while we’re proud to be a member of the global e-commerce funding community, it’s not a given that all providers will deliver the right terms and support.
“We were able to set up an easy process with SellersFunding to reduce our leverage and lower interest payments. And at the same time, get a huge influx of cash from the factor to improve our own working capital status.”— Christopher Koop, CFO, CROSSNET
Before finding SellersFunding via a Google search, Chris Koop and his team of rockstars at CROSSNET met with multiple e-commerce working capital providers.
When he realized he could tap into a full suite of financial solutions — including working capital, PO financing, A/R factoring advances, and more — Chris knew he’d finally found the right partner.
With the right partner by their side, Chris and the CROSSNET team continue to deliver annualized revenues averaging around $10 million, growing their brand as the next household name in sports.
“We’ll be with SellersFunding for the long term — for years and years ahead. Honestly, as long as CROSSNET is in business. We’d absolutely recommend SellersFunding to any company out there that needs financing options that are cost-efficient and flexible. In the e-commerce and consumer goods space, SellersFunding has been a tremendous partner.” — Christopher Koop, CFO, CROSSNET
#3. We believe your version of success is the only one that matters
There’s no wrong or right way to “do” e-commerce. And if we’ve learned anything from recent history, it’s that plans can change overnight.
At SellersFunding, our team of global e-commerce experts has worked with thousands of sellers — all with different niches and business structures. With us, you won’t have to jump through hoops to explain your business model. We know every brand has its own unique story.
When growing retailers partner with us, they get expert support tailored to their strategic vision — not ours.
Each SellersFunding client is connected with a dedicated account specialist who can help you access customized funding solutions to grow your store and improve your business valuation.
“Our business transformed from being a brick and mortar retailer to a predominantly digital business nearly overnight. This created many operational challenges and difficult negotiations with our suppliers, as well as unique growth opportunities.” — Selim Baraz, CFO, Cath Kidston
When Selim and the team at Cath Kidston began exploring e-commerce funding, they were at a pivotal moment in the high street brand’s history.
With the help of our working capital solution, Cath Kidston was able to offset losses due to mandatory lockdowns and launch a digital reboot to fuel its omnichannel growth. As part of the digital transformation, the team updated its e-commerce platform and CRM and rolled out a new cross-border payment and shipping solution to serve over 200 overseas markets.
“SellersFunding brought instant access to a flexible and affordable credit facility and unique e-commerce and cross-border payments expertise. It designed a deal to fit our new supply needs with bespoke terms based on our unique circumstances and brand equity. This included a delayed start to the repayment schedule, giving us a ‘grace period’ where all our cash flow could be used to drive sales.” — Selim Baraz, CFO, Cath Kidston
No matter how you plan to scale your store, it’s never been more important to have e-commerce funding partners who can change and grow as you do. Whether it’s us or another e-commerce funding partner, it’s important to link arms with a team that can be flexible as things shift.
Our promise at SellersFunding is always to set you up to win through extended terms, competitive rates, and up to $5M in funding. We also know that in this business, listening is everything. We regularly review our products based on client results and feedback.
#4. When you win, we win
As a full-stack funding provider, our model at SellersFunding is to grow alongside our customers. In short: When you win, so do we.
Because we’re focused on growing with clients over time, we’re simply not interested in opaque or outright predatory terms and practices. We believe every online retailer should have a funding partner they can trust. One who has both the tools and the know-how to help you continue growing with every new milestone.
When the pandemic hit, many lenders shut down. At SellersFunding, we were there for both our existing and new clients.
“Since we get paid every 14 days, our cash was tied up, especially considering the amount we hold in reserve. So, it put stress on our cash flow. We’ve also been getting used to the inventory limits and restrictions that Amazon has imposed on sellers. We started working with a 3PL and opened up our own warehouse.” — Deluxy
Planning for Q4 2020 presented a major hurdle, even for the most experienced sellers. When the team at premium wedding gift boutique Deluxy found themselves facing cash flow gaps and increased warehousing and fulfillment costs due to slow Amazon payouts — they knew they needed to get things back on track in time for Christmas.
“We had to place a lot of orders for Q4 last year, and that’s when I started looking for funding to be able to purchase all of the inventory.” — Deluxy
The team at Deluxy had tried traditional funding options like a credit line and SBA loan — but the slow application process made it clear these could never be long-term solutions. Luckily, that’s when they found SellersFunding.
Since eliminating its cash flow gaps using the Daily Advance, Deluxy has been able to expand its product range, open its own warehouse and increase market share.
Having a funding team ready to respond to life’s curveballs is crucial. Your financial partner should be flexible and willing to support your business growth, no matter what.
#5. Active support is our mantra
Unfortunately, there are funding providers out there that — whether intentionally or unintentionally — can actually derail your growth.
Some e-commerce funding companies end up over-extending. Clients aren’t able to pay back the funds and inevitably, their credit takes a hit. At SellersFunding, that’s not the way we play.
We partner with growing ecommerce companies that have proven sales and clear growth initiatives. And we take an active role in their success.
“It was the end of last year, which is the busiest season for Amazon sellers, and I was working with a different online lender. The experience was not as positive as I’d hoped it would be. The lender took back their capital. I had two days to find money because Black Friday is the biggest day for online sales. For us, it’s also the biggest day for online purchases. So, I was shopping around for different partners who could provide the capital quickly.” — Deluxy
When e-commerce entrepreneur Ibrahim Tourelba had his funding retracted for arbitrary reasons just two days before Black Friday, our team jumped in feet first to help him get the capital he needed.
Our customer success rep worked closely with Ibrahim’s team at Sambi, the compliance team, and other departments to bring his approval over the finish line in time.
“I called SellersFunding at the same time as other online lenders, and SellersFunding was just easier. It’s not tricky, like some other people out there. You have a certain amount of time to pay the funding off, the interest rate is clear, and the repayment schedule is straightforward.” — Sambi
Sambi ended the year with a whopping 15% growth rate, putting the store’s revenue at $5 million — a 25X revenue increase from when they started four years prior.
Five reasons. Endless opportunities.
For sellers and brands committed to sustainable growth over the long term, the world of e-commerce is your oyster.
But while this industry can be incredibly rewarding, it’s also unique.
When it comes to choosing a partner who can help you make the right investments as you scale, look for one who has the right culture, character, and experience to truly have your back along the rocky road to success.
At SellersFunding, we’re proud to serve e-commerce brands of all shapes and sizes. Here’s just a small snapshot of what we’ve been able to achieve so far:
40K SellersFunding App Users
$4B Annual Client Sales
70% AVG YoY Growth for $1M+ Sellers
4.9 TrustPilot Rating
With our all-in-one e-commerce funding solutions, we support brands worldwide to grow sustainably and at speed. But don’t take our word for it.
Check out our growing library of e-commerce funding case studies, featuring real growth stories from sellers just like you — or, reach out today to learn more about how we can help.
