E-commerce businesses face a capital challenge that’s uniquely tied to inventory velocity and advertising efficiency. You need to buy inventory 60–90 days before a peak season, run paid advertising with upfront cost and delayed ROAS measurement, and fund fulfillment infrastructure — all before your customers pay. The right financing product is calibrated to online revenue patterns, not the monthly bank statement patterns that traditional lenders favor.
Loan Options
| Loan Type | Best For | Typical Amount | Rate Range | Term |
|---|---|---|---|---|
| working capital Loan | Inventory, advertising, operations | $10K–$500K | 12%–45% APR | 6–24 months |
| Revenue-Based Financing | Advances repaid as % of monthly revenue | $10K–$750K | Factor 1.10–1.35 | 6–24 months |
| merchant cash advance | Fast inventory or advertising spend | $5K–$250K | Factor 1.15–1.45 | 3–15 months |
| Inventory Financing | Collateralized inventory advance | $10K–$500K | 10%–30% APR | 3–24 months |
| business line of credit | Flexible revolving capital | $10K–$300K | 10%–35% APR | 12–36 months |
| SBA 7(a) | Long-term growth, warehouse, staffing | $50K–$5M | 10%–13.5% APR* | 7–10 years |
*SBA rates variable. Verify with your lender.
Typical Qualification Requirements
| Requirement | Typical Minimum |
|---|---|
| Time in Business | 12 months |
| Monthly Revenue | $15,000+ |
| Annual Revenue | $180,000+ |
| Credit Score | 600+ |
| Platform | Amazon, Shopify, WooCommerce, or multi-channel |
Consistent monthly revenue and strong bank deposits are the primary underwriting drivers. Credit score matters, but lenders weight cash flow heavily for these business types.
How to Apply
- Prepare documents: 3–6 months bank statements, 2 years tax returns, business license and any professional certifications.
- Apply through a marketplace: Reach multiple lenders with a single submission and compare offers side by side.
- Review the full terms: Compare APR, total repayment amount, and payment frequency — not just the advance amount.
Frequently Asked Questions
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Related Financing Options
Each product works differently — see which fits your specific need.