As a growing eCommerce business owner, you face many challenges in keeping the momentum going. From inventory to technology to hiring employees, you want to invest in your business and take it to the next level. On the other hand, you have to keep a keen eye on your finances and cash flow. So, as an online SMB owner, you may be asking yourself, “How do I secure funding to grow my online business in 2017?” Fortunately, learning how to fund your eCommerce business isn’t a difficult task.
Securing funding, on the other hand, can be a daunting task. But don’t worry, in this post, we will go over the different ways you can fund your eCommerce business.
Businesses can either get funding in the form of debt or equity. Debt is money you owe to a lender, and you also pay interest on the principal. Equity financing is giving away shares of your company in exchange for money. Equity is a good option if you don’t mind bringing in investors and are looking to raise a significant amount of money.
Here’s the good news, since your eCommerce business is booming, people will want to invest in your business. You have proven that your concept works and there is a market for your product.
And it gets better: As the economy keeps growing, businesses and banks are more willing to invest. There has been a 10% increase in SBA Business Loan Approval Activity in 2016 YTD as compared to 2015. In fact, new business loans have been at its highest level since the Great Recession. While interest rates are still relatively low, it is widely expected to increase in 2017. You should try to secure funding as soon as possible.