- 47% increase in demand for flexible financing for online businesses
- 365 Business Finance Reports 35% Increase in Average Amount Advanced for Ecommerce Customers
Online businesses have thrived over the past two years, showing no signs of slowing down in terms of their growth or popularity with UK consumers.
Unsurprisingly, there has also been an increase in online business demand for flexible financing, up 47% * according to the London-based lender. 365 Corporate Finance. As a provider of cash advances to merchants, this dramatic year-over-year increase from 2020 shows how fast some online businesses are growing, requiring additional funding.
SMEs frequently use cash advances from traders to facilitate their cash flow, to purchase additional inventory and equipment, and to expand or renovate premises. However, in e-commerce, the cost of updating and continuously improving online store windows often requires additional investment as well, with flexible funding, simple and fast solution, no APR, fixed term or with fixed monthly payments.
As the e-commerce industry continues to grow, the average amount advanced by 365 Business Finance to online points of sale increased by 35% in 2021, with a 56% increase in 2020 compared to 2019.
365 Business Finance Managing Director Andrew Raphaely said: âWe are now working with more and more SMEs in e-commerce, as the COVID-19 pandemic has further accelerated the needs and desires of consumers to make their purchases. online shopping from the comfort of their own. houses.
âIt’s important to understand that online businesses need to invest heavily in their online presence, in terms of website development, setting aside funds for monthly running costs, search engine optimization and advertising and marketing necessary to make an e-commerce business successful.
âThe fact that with a cash advance from a merchant, these ecommerce businesses are only required to repay funds through a small percentage of their online transactions, it means their cash flow is not negatively affected, as they only reimburse the advance when customers pay them. “
For more information on how Merchant Cash Advances can help online businesses and how to apply for Â£ 5,000 to Â£ 200,000, visit Online Business Finances | 365 Corporate Finance.
365 Business Finance also published a useful guide to e-commerce finance, following the increase in demand from this sector.