An ecommerce business can seek financing for inventory and related growth needs, subject to the provider’s requirements. The review may consider sales records, bank deposits, operating history, credit and existing obligations. Build the request around the time between paying a supplier and receiving usable customer-sale proceeds, not just the storefront’s gross sales number.
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Which Ecommerce Numbers Matter Most?
Prepare revenue, refunds, platform fees, advertising costs and cost of goods. Explain the difference between order value and actual deposits. Marketplace reserves, processor holds and settlement schedules can affect when money is available for payments.
Separate established products from new launches. An existing sales history can help explain replenishment needs; an untested product requires a more cautious forecast. Do not assume an ad campaign will keep producing the same results as spending increases.
How Do I Model the Inventory Cash Cycle?
Account for More Than the Factory Invoice
A $16,000 order plus $4,000 of freight and import costs creates a $20,000 upfront need. If expected sales are $32,000, the remaining $12,000 still has to cover advertising, platform charges, returns, fulfillment and financing. Add manufacturing and shipping time before estimating when cash will arrive.
Run a slower sell-through scenario. Repayment can begin while stock is still in transit, and a product return can reverse revenue after you have already made a funding payment.
What Should I Prepare for a Funding Review?
- Supplier order, landed cost and delivery schedule.
- Recent platform sales and actual bank deposits.
- Margins after advertising and fulfillment.
- Refund history and existing funding withdrawals.
- A plan for unsold stock or shipping delays.
Inventory-secured financing, general working capital and platform offers are different arrangements. Propello can review your business funding needs; the available product and permitted uses must be confirmed before you place the order.
Educational information, not a loan offer. Availability and terms depend on the program, property or business, and borrower qualifications. Legal and tax questions should be reviewed with your advisers.