Retail & E-Commerce

Inventory has to be bought long before it sells

The cash-flow reality

Retail is a bet placed months in advance. Holiday inventory is ordered in summer, paid for on the supplier's terms, and does not become revenue until the season arrives. E-commerce adds a second lag — marketplace and processor payouts arrive days after the sale while ad spend is charged the moment it runs. The businesses that grow fastest are usually the ones most starved of cash.

Where it squeezes

01Supplier deposits and full payment due well before the selling season
02Marketplace and processor payout holds on completed sales
03Ad spend charged daily against revenue that arrives later
04Overstock tying up cash in goods that are not moving
05Rent and staffing through the post-holiday trough

What owners use capital for

Funding a seasonal or holiday inventory buy
Scaling advertising spend ahead of payout cycles
Opening an additional location or warehouse
Covering rent and staffing in the slow quarter
Taking advantage of a supplier's volume discount

Structures that fit

What retail businesses most often use — in order.

Compare all six

Most common fit

The one that moves with you

Revenue-Based Financing

Who this is for

Seasonal businesses and those with uneven month-to-month revenue.

Amount: $5K – $1M
Term: Varies with your receipts
Speed: Often the fastest option to fund
Cost basis: Factor-based cost, disclosed as a total before signing

Payments scale with revenue
Lightest documentation
Credit is not the primary factor

The honest tradeoff

Typically the highest cost per dollar — you are paying for speed and flexible qualification.

Compare structures

The one you keep on standby

Business Line of Credit

Who this is for

Businesses that want capital on standby for recurring or unexpected needs.

Amount: $10K – $250K revolving
Term: Revolving, typically renewed annually
Speed: Days to set up, then draw on demand
Cost basis: You are charged only on what you draw

Draw and repay on your schedule
Pay only for what you use
Replenishes as you repay

The honest tradeoff

Approval amounts are usually smaller than a term structure, and the line must be maintained.

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The predictable one

Working Capital

Who this is for

Businesses that want a fixed schedule and a clear payoff date.

Amount: $5K – $2M
Term: 3 – 24 months, typical
Speed: Days, once your file is complete
Cost basis: Fixed total cost disclosed before signing

Predictable payment schedule
No collateral required
Clear payoff horizon

The honest tradeoff

Less flexible than a line of credit — you take the full amount up front and repay on a set schedule.

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The one that unlocks money you already earned

Invoice Factoring

Who this is for

B2B businesses carrying real receivables from slow-paying customers.

Amount: Up to 90% advance rate
Term: Per-invoice, no long-term contract
Speed: Fast once your account is set up
Cost basis: A discount on the invoice face value

Scales with your receivables
No long-term contract
Your customer's credit matters most

The honest tradeoff

Only works if you invoice other businesses — there is nothing to advance against otherwise.

Compare structures

Amount ranges and timelines are typical ranges, not guarantees. All financing is subject to underwriting review; product availability and terms vary by applicant.

Questions from retail owners