Building an Amazon Business takes a lot of work, planning, and coordination. Many small and medium sized businesses can often struggle to allocate resources to prepare themselves for set expenses, financial investments and to finance their growth strategies.
You may have some goals to help take your Amazon business toward its next growth peak such as:
● Expanding product lines
● Increasing marketing efforts
● Onboarding a fulfillment partner to support growing demand
● Hiring additional personnel to meet changing business needs
Inventory financing provides you with another channel to obtain additional capital for inventory purchases without having to reallocate funds from other parts of your business. From production to shipping and logistics, an extra injection of cash means businesses will be able to produce more goods without compromising the quality of their products. With inventory financing, businesses can purchase the inventory that they need and scale their growth to accommodate new markets and explore new channels. Because brands make no payments on newly funded inventory until they receive it and it begins selling, they don’t need to worry about pinching costs and passing on other growth investments because all of their cash is tied up in an inventory order that won’t arrive and produce revenue for weeks or months. This can be especially helpful for growing Amazon eCommerce businesses.
Why Consider Inventory Financing for your Amazon Business
Inventory financing for your Amazon business can leverage the resources of a financing partner to pay for inventory production, which is one of the largest expenses for most product brands. The funding can also be tailored to address your Amazon business’s exact needs, where the manufacturing, shipping and sales timelines, as well as order quantities and more, combine to create a custom funding and payback schedule perfectly aligned to your cashflow. The products produced will act as the collateral for the financing, meaning that if the business reports an inability to repay the funding, the inventory can be sold to cover the debt.
Inventory financing is especially valuable to any business experiencing a significant delay between paying for inventory and receiving payment from retailers or sales (such as the holding period Amazon sellers experience before receiving their sales revenue). It is also helpful for businesses that want to receive volume-based discounts by placing larger orders to lower their per-unit cost or support multiple distribution points at once. This works best when done on a quarterly or other regular basis and can help to prevent the stock-out issues that hinder growth.
Kickfurther Inventory Financing
Kickfurther has served a number of Amazon sellers who were growing their sales, adding other distribution channels or were otherwise looking for growth capital. Kickfurther is an online inventory funding marketplace where brands access funding for new inventory (or can get reimbursed for recently produced goods).
Why a private marketplace? Markets respond, but bank interest rates don’t. Our marketplace brings together a number of funding sources that respond to your success and often engage at lower costs each time you build your track record of success in receiving and paying back funding.
Kickfurther funding goes directly to your manufacturer at the time you place an inventory order and you make no payments until you receive and begin selling the new inventory. Other funding options take daily debits from your account before you receive revenue from new inventory, or traditional loans may have repayment schedules that begin immediately, but Kickfurther is different. On Kickfurther, you create a custom payment timeline based on when you’ll receive revenue, allowing you to order the inventory you need without impeding your ability to maintain financial flexibility while you wait for it to arrive and begin selling. Kickfurther thinks you should begin making payments on inventory after you receive revenue from its sale, not before.
What are the benefits of working with Kickfurther?
- 30% lower costs:
When you compare Kickfurther costs to competitors, you’ll often see you’re saving. As companies return to access additional funding, their costs often fall due to the nature of a responsive marketplace that takes your prior funding and
payment success into consideration.
- Higher funding opportunities:
○ Access up to $5MM to manufacture new inventory or get reimbursed for current stock and reinvest in where your business needs it most.
- Funded in Minutes:
Once approved, brands find they’re funded within a day, often within minutes to hours.
- Custom Payment Terms:
Businesses create a custom payment timeline of 1-10 months based on their expected sales cycles, with no payments until you start making sales. This alleviates the cash-flow bottleneck lenders cause without customized repayment
Interested in learning more about using inventory funding for your Amazon business? Create a business account today at Kickfurther
to see a funding offer tailored to your business.