- 47% increase in demand for flexible funding for online businesses
- 365 Business Finance Announces 35% Increase in Average Amount Advanced for E-Commerce Customers
Online businesses have flourished 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 demand from online businesses for flexible funding, up 47%* according to the London-based lender. 365 Business Financing. As a provider of merchant cash advances, this dramatic year-over-year increase from 2020 shows how quickly some online businesses are growing, requiring additional funding.
SMEs frequently use merchant cash advances to help with cash flow, to purchase additional inventory and equipment, and for expansion or renovation of premises. However, in e-commerce, the cost of continuously updating and improving online storefronts often also requires additional investment, with flexible financing a quick and easy solution, no APR, fixed term or monthly installments. fixed.
As the e-commerce industry continues to grow, the average amount advanced by 365 Business Finance at online outlets increased 35% in 2021, with a 56% increase in 2020 compared to 2019.
365 Business Finance Managing Director Andrew Raphaely said: “We are now working with more and more SMEs in e-commerce as the COVID-19 pandemic has further accelerated consumers’ needs and desires to do their shopping. shopping online from the comfort of their own homes.
“It is important to understand that online businesses need to invest heavily in their online presence, in terms of website development, setting funds aside for monthly running costs, search engine optimization and advertising and marketing needed to make an e-commerce business a success.
“The fact that with a merchant cash advance, these e-commerce businesses are only required to repay the funds through a small percentage of their online transactions, means that their cash flow is not negatively affected, as they only repay the advance when customers pay them.”
For more information on how merchant cash advances can help online businesses and how to apply for £5,000 to £200,000 go to Online business finance | 365 Business Financing.
365 Business Finance also published a helpful guide to e-commerce financingdue to the increase in demand from this sector.