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Funding international expansion to the UK with Airwallex and 8fig

By Margaret Nguyen, AirWallex | May 19, 2022
Funding international expansion to the UK with Airwallex and 8fig

At first thought, expanding your business to the UK might seem like too much to take on. But the time has never been better to grow your business abroad.

Boost your cash flow with 8fig.

However, there are a handful of early processes you’ll have to tackle, such as registering your business, becoming familiar with international business laws, and interviewing foreign candidates. But before you can start carrying out business transactions and paying a larger staff, you’ll need to make sure you have enough funding to do so. Our guide below walks through how to fund your UK expansion.

Raising capital is an essential step in your UK international expansion plan. Let’s take a look at why.

Why Capital is Essential for Expansion

Capital is important if you want to see growth at a substantial and consistent pace. Though your business might have the funds to expand, you’ll want extra to support your company during the transition.

8fig’s continuous and adaptable Growth Plans are built specifically for the needs of your eCommerce business. We’ll fund your hero products so you can use your revenues to invest in other areas of your business, such as expansion.

8fig covers up to 95% of all supply chain costs for your bestsellers. We’ll fund:

  • Freight
  • Inventory
  • Logistics
  • Marketing

This frees up your cash flow and revenues to focus on:

  • Increasing your production capacity
  • Bumping up payroll
  • Sales
  • Developing your products
  • Acquisition finance
  • Succession planning
  • And more

How to Get Capital for Your International Expansion

You’re probably well aware of how much money you currently have (or at least you should be). However, it’s wise to figure out how much more capital you’ll need for your UK expansion before securing funds.

One way to accomplish this is by creating a rough outline of what you expect you’ll need during the first few months of your expansion. Using your revenue and current balance sheets from your current location will help you determine how much financial help you should apply for.

Establishing a new business location overseas doesn’t always play out perfectly, so you should be generous with your buffer. Hidden costs and unexpected emergencies are reasons to pad out what you presume you’ll need.

The next step in getting capital for your UK expansion is determining where that capital will come from.

Online Funding Platforms for ECommerce Businesses

Online funding platforms like 8fig provide flexible capital for the continuous growth of your business. We’ll fund up to 95% of your best selling products supply chain, freeing up your cash flow and revenue so you can invest it into expansion.

8fig makes it easy for you to plan your potential. You can scale your eCommerce business using their free growth planning platform that serves as a drawboard to map out your inventory and sales. It’s a great way to see your cash flow in every stage of the supply chain.

Rather than relying on a one-time disbursement loan, 8fig will continuously fund you capital to match the demands of your supply chain, as well as your future growth projections.

Sign up for 8fig today to see how we can help fund your eCommerce expansion to the UK.

Investors

Another way to raise capital is through investors.

Depending on where you live, your federal government might have a program in place that encourages entrepreneurs and small- and medium-sized businesses (SMBs) to grow their brand.

The US Small Business Administration, for example, will fund Small Business Investment Companies (SBICs).

SBICs are licensed, privately owned companies that invest in small businesses based on their debt and equity. SBICs end up combining their own funds with the money that they receive from the Small Business Administration and then invest it in various small businesses.

When a business gets funding from an investor, they end up paying the capital back with interest, and also have to give an ownership share of the company. Of course, this depends on the type of investment that was made.

Working Capital Loans

working capital loan gives cash to businesses for their day-to-day expenses. Working capital loans are much easier for small businesses to get than other types of loans that require personal guarantees or a large amount of collateral.

Working capital loans are incredibly helpful at covering operating expenses, which are an incessant need for small businesses. Working capital loans cover those expenses through short-term loans, bank credit loans, trade credit, equipment loans, or home equity lines of credit.

Your existing capital is what determines how much you qualify for. Your loan is calculated by subtracting your liabilities from your current assets. Fortunately, the application process is fairly easy to complete and submit online.

Options for Fulfillment by Amazon (FBA) businesses

If you’re an eCommerce business selling through Amazon, there are some other funding options for you to consider since securing traditional business loans through investors or lenders is sometimes difficult.

Let’s take a look at your options as an Amazon seller.

United Small Business Alliance (USBA) Micro Loans

The US Small Business Administration offers micro loans to small businesses in the US. These micro loans range from $500 to $50,000 to help startups and/or expansions.

Amazon Lending Loans

The Amazon Lending loans program was created by Amazon Capital Services, Inc. It’s an invitation-only program that helps SMBs with short-term financing so they can grow on the Amazon platform.

These loans have a wide range, covering anywhere between $1,000 and $750,000.

In order to be approved, your seller account must be in good standing with Amazon at the time that you apply. And since the loan program is by invitation only, you’ll have to check your Amazon Seller Central account to determine if your business is eligible.

Amazon Line of Credit

Goldman Sachs has a partnership with Amazon where they offer a business line of credit to qualified sellers. This type of business capital allows SMBs to request their funding on an ongoing, rolling basis. So, you can’t expect a large sum of money at one time.

It’s another invite-only program, so you’ll need to visit your Amazon Seller Central account to determine if you’re eligible.

Once You’ve Secured Funds, Here’s What to Do Next

Once you acquire funding for your expansion to the UK, these are the steps you should take:

  • Make sure you have the correct business license and legal forms to operate in the UK.
  • Research UK business laws and familiarize yourself with them.
  • Put your business under an insurance plan.
  • Set up a UK business bank account to manage your finances.
  • Start interviewing and hiring candidates.

How 8fig + Airwallex Can Support Your International Expansion

At 8fig, we make it a priority to support our customers however possible. That includes partnering with other businesses that can facilitate your financial operations and international expansion.

Enter Airwallex. Airwallex’s global business accountsborderless virtual cards, and convenient payment links are all tools designed to support global business success.

Check out Airwallex’s UK Growth Guide to learn more about expanding to the UK or sign up for a free borderless business account today to get started.



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