Ecommerce business loans

Ecommerce business loan – online retailer finance

Retail Industry

ecommerce financingThe UK had the third largest eCommerce market in the entire world back in 2015, and since then it has only gone on to grow further. Of the roughly 67 million people that live in the United Kingdom, a whopping 96% are now internet users; the level of online sales we see year after year only supplies us with further evidence that shopping online is very much the new normal.

The Ecommerce Foundation’s latest report shows that eCommerce sales account for just under 8% of the UKs domestic product, which is a huge jump from 2015 when it was only 5.2%.

Grow your E Commerce Company

As a leading funder to E-commerce businesses, we understand that funding a business can be expensive. Which is why we offer business loans that are unique for online retailers. Our small business loan for ecommerce businesses offer, platform owners between £1,000 and £500,000 in funding, the best pat is this type of finance is available in just 24 hours.

E-commerce loans from PDQ-Funding are unsecured, which means there’s no need to risk your business assets as security for the loan. Lenders may ask you to provide a personal guarantee in some circumstances. The unsecured business loans no personal guarantee uk will only be called upon should your e-commerce business defaults on payments. The repayment will then fall upon the business owner to settle the loan as he/she will become personally liable to repay any money lost.

There has literally never been a better time to have a crack at the eCommerce market if you’re a business owner or someone that’s hoping to become a business owner in the near future, this is because we see the online figures growing constantly, year after year on a substantial level.

The Ecommerce foundation has also reported that in the e-government development index, the UK is the top ranking country. Online spending across the UK amounts to a staggering £1.1 billion every week in this day and age, and as business owners search for ways to meet consumer shopping preferences, e-commerce optimisation is becoming an even more important aspect of business growth rates.

E-commerce startup loan

You maybe looking at starting a business in the e-commerce space an e commerce startup loan may help, it maybe a drop shipping type of business or an online store selling anything from dog clothing to shoes.

What ever the type of business you will need funding to get it off the ground. As the venture will not have a credit history, you may need to apply for a Start Up Business Loan, which is government-backed and and classed as a personal loan. These type of loans are available to individuals looking to start or grow a e commerce business in the UK.

In addition to finance, successful applicants receive 12 months of free mentoring and exclusive business offers to help them succeed. The loan is unsecured, so there’s no need to put forward any assets or guarantors to support an application.

All owners or partners in a business can individually apply for up to £25,000 each, with a maximum of £100,000 loan available per e commerce startup business. These loans are derived by the British Business Bank.

How will a business loan help you to achieve your goals?

When considering the costs that come with running an eCommerce business, there are multiple factors to think about. Being a founder and setting goals is a good starting point. You may have an Instagram store and market your business as “female-led’ this maybe a unique selling point (USP) to sell to other females so a – women entrepreneurs loan maybe a perfect fit.

Website building and hosting

The main cost you’re likely to have already made yourself aware of is that of your website itself. You cannot imply set up a WordPress blog or something of a similar vein; you’ll be expected to have a slick, modern looking site, with a heavy focus on the latest tech. If your website isn’t up to scratch and at modern standards, you can expect your sales to slump and your business to falter because of it.

Domain names

When you finally decide on a name for your eCommerce business venture, you’ll have to purchase the domain names to go along with it. If you’re unsure what a domain name is, it is the actual name of your website; your web address, if you will. Prices can vary depending on what name you decide on, so be careful because things could begin to get pricey.

Payments platform

If you’re hoping to ell products online, you’ll likely need a third-party eCommerce platform to put through the sales for you. Doing this means that you’ll most likely get charged a monthly fee, so you’ll always need to have some money set aside to cover that aspect of your business going into the future.

These are just a mere few examples of costs that’ll need to be covered when running an eCommerce business, you should also be thinking about:

  • Equipment purchasing and maintenance
  • Staff costs
  • Marketing and advertising campaigns
  • Refunds and shipping returns
  • Utilities
  • Transaction fees
  • Insurance
  • Taxes
  • Website maintenance

More on our online business funding

The online business funding that we offer is ideal for all small and medium sized businesses that need to access some extra cash quickly.

Having access to a steady and constant cash flow is key to website development, marketing your business over the internet, running a profitable business venture and even more. Funding is often the key to unlocking online success within a business.

With the merchant cash advance service which is an alternative business loans for retailers we currently have on offer, your online business venture can gain quick access to funds between £5,000 and £200,000. However, this differs from a more traditional business loan in a positive way, as it is unsecured and therefore you’ll be facing no hidden APR or minimum monthly repayments, etc.

When your application is deemed successful and you receive your funds, you can use it however you like. It’s your business and we understand that you, as the business owner, know better than anyone else when it comes to what your venture actually needs.

Here are a few examples of what you could use the money on if you’re looking for some inspiration:

Develop your website and make improvements to it, or rather build a new one from scratch if you believe you could do better in the future. You could hire a website designer for example.

Get the word out about your business and set up an advertising campaign through the likes of Google AdWords and Facebook Ads, etc. This could help to improve sales and just generally spread information quicker in regards to your business venture.

Start to carry out some search engine optimization (SEO) research so you can begin to increase traffic across your business’ webpages.

Buy new inventory and refill your stock so you can continue to sell your products online and ultimately increase your overall profits.

Cover the costs that come with running your business, such as paying staff you employ and paying for hosting, as well as other technical expenses

How does Ecommerce financing work

If you want to run an online business successfully, you’ll need pretty constant access to cash so that you can invest in more stock, plan and execute effective marketing strategies, pay for online advertising and cover more general costs, too. This where our e-commerce financing comes into play..

Our e-commerce financing product is designed to meet the needs of small and medium sized businesses that need a little financial boost to get them to where they want to be. The cash advance services we offer allow your online business venture to access between £5,000 and £200,000 in fast, simple funding.

We differ from bank loans, as mentioned previously, as what we offer is classed as ‘unsecured’. Instead of focusing on fixed monthly repayment loan terms, you’ll need to repay the cash advance over time with a small percentage of your monthly debit/credit card sales. This fee will be agreed upon before you sign up for the loan, so don’t worry about hidden fees and charges as there won’t be any.

This basically means that when things are going well and your business is taking a lot of cash via card sales, you’ll repay more of your loan. Although, when you’re facing a more difficult financial period, try not to worry too much as you’ll be repaying a much lower amount, ultimately making things easier and more convenient for you.

Is my online business eligible?

In order to be eligible for one of our online business cash advances, your business needs to take a minimum of £5,000 in debit card or credit card sales each month. Your business will also need to have been trading for at least six months.

Once you’ve completed your application and sent it to us, you’ll then begin to receive personal assistance from a member of our expert team, who’ll be able to talk you through the entirety of the process and assist you with the funding information you’ll need. Once your application has been approved, you’ll receive the full funding amount as a lump sum payment directly into your business bank account.

When it comes to repaying the merchant cash advance for your online business, you’ll pay an agreed upon percentage of your monthly debit and credit card sales. Once again, this means the less money your business makes in a month, the less of your loan you will repay.

Our funding source is flexible and will help in allowing you to focus on running your online business venture, while growing and developing it further into the next stage

Merchant Cash Advances for eCommerce businesses:

  • £5k – £200k to grow your eCommerce business
  • PDQ Cash Advances from your Card Payment Terminal
  • 6 months of trade needed to gain a Merchant Advance
  • Repayments from 7% of future card transactions
  • Monthly average card turnover of £5K required

Eligible for a Merchant Cash Advance?

eCommerce businesses that uses a card payment terminal machine to process customer sales. This is one of the prerequisite requirements to be eligible for a merchant cash advance. The business must be able to demonstrate a consistent level of monthly cash inflow of about £5,000 per month or more. The last 6 months of card payment statements will also be needed.

Eligibility Requirements:

  • Registered and trading in the UK
  • Business owner over the age of 18
  • Business must be at least 6 months’ old
  • Minimum monthly turnover of £5,000

eCommerce Business Finance Application

Step 1:

Visit our application page and provide the relevant information. This will ensure that we match you with an ideal lender. We will then ask you for further information about your business. You’ll need to be ready to tell us the following:

  • The name of your eCommerce business
  • How long you’ve been in business
  • Your average monthly card sales
  • The amount you are looking to borrow

Step 2:

Will will then require a few personal details, so please be ready to tell us:

  • Your title, along with you first name and surname
  • Position you hold within the business that is seeking a loan
  • Email and telephone number, so that we can stay in further contact with you

Step 3:

Read through our terms and conditions carefully, and if you’re happy to continue, click ‘get a quote’. From here your application will be processed and reviewed by a member of our business finance suppliers team, who will help you find the correct lender for your emergency business loan.

Step 4:

We will then be in touch with you to confirm the conditions of your business loan agreement.

Step 5:

Once the application is complete, it will be sent off and approved by a lender. You can then have a discussion with them regarding the terms of the loan. These terms will include interest rates, as well as how much the borrower will repay each month. The loan is then provided to you on an agreed and transparent basis. As providers of capital for merchant cash advances uk we support the growth of your business with our eCommerce business loan alternative.

E-Commerce Business Loan FAQ’s

e-commerce business loans what are they?

E-commerce business loans are financing for online shops & stores or any in-fact any website that sells goods solely online. Businesses that trade solely online generally tend to operate at lower costs than most traditional high-street businesses, they still require business finance for growth.

How can I get business loans for my e-commerce business?

If you run and operate an e-commerce online business and are looking for finance, we PDQ Funding can help with an alternative type of business loan. The product is called a merchant cash advance, it is designed for online businesses.

Why should we choose PDQ Funding for our e-commerce business loan?

PDQ Funding understand the sector you are in, our product works perfectly with online businesses who take payments online. Our application is easy to complete and can be submitted in a matter of minutes.

Menu