Fragrance business financing

The fragrance industry includes products that are formulated to entice the consumer’s nose. It can involve perfume, cologne, shampoo, conditioner, lotion, aftershave, makeup, and your favorite candles. It’s an industry in which demand fluctuates according to the customer’s change in style and age. Businesses working in this industry know that it’s all about trends, so there are going to be a few challenges along the way. Fragrance business financing can help you through them.

Whether you’re a manufacturer, wholesaler, or retailer, the expenses involved in the supply chain are extensive. Materials cost a great deal, as does the labor to create, package, and ship products to customers. These costs are often due up front, as the customer doesn’t pay until everything is said and done. From inventory procurement to marketing, it’s all about strategy and trusting your money with the right partners and platforms.

Fragrance business financing helps businesses manage the many costs that are involved with the supply chain and order fulfillment. Such costs can eat into your marketing budget and leave you without a properly-utilized sales channel. However, if you have funding, you can generate more income without worrying about maintaining cash flow for your business operations.

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8fig: Working Capital For Online Retailers

Grow your online retail store 2.5x faster with an 8fig Growth Plan. 8fig funding is:
Your 8fig Growth Plan is designed just for you. It’s uniquely suited to your business’s needs based on information you provide. You get the funding and resources you need to grow and reach your full potential.
Cash Flow Friendly
8fig financing is cash flow friendly. That means that your payments and remittance schedules are separate and tied to the ups and downs of your supply chain expenses to maximize your cash flow.
Unlike most funding options which provide one lump-sum payment, 8fig offers continuous financing. You get repeated cash infusions when you need them most, so you can cover your supply chain expenses.
With 8fig funding, everything is flexible. You can adjust your funding amount, cash injections, and remittance schedules in real time with the click of a button to fit the natural fluctuations of your business.

About Fragrance Business Financing

Fragrances have been in high demand for a long time, and there’s no doubt that consumers will continue to show interest in such products. People seek out items to manage their appearance, scent, and skincare. There are also trends involving essential oils, which fluctuate over time. Keeping up with such changes in demand takes capital, so many sellers turn to fragrance business financing.

Funding is the answer to many of the challenges faced by such businesses. It provides you with steady cash to make short-term and long-term decisions about your company. You can afford to purchase the ingredients to create the popular scents on the market. You can delve into the different ways to sell scents, such as through advertising campaigns and beauty and wellness influencers. Fragrance business financing provides you the breathing room you need to grow your business and be prepared for unexpected changes and costs.

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Fragrance Business Financing Opportunities

Fragrance business financing opportunities are available everywhere, but choosing one can be overwhelming. Your business may suffer if you take on too large of a loan or gamble your inventory when you don’t have the funds to repay the debt. However, there is most likely a type of funding that will benefit your business. All it takes is some research to find the one that’s best for you.

fragrance business financing

Bank loan

A bank loan is a type of funding provided to a business by a traditional bank. The loan usually involves a high monthly repayment, but often lower interest rates compared to other types of loans. Collateral may or may not be required, as every bank differs. Collateral could include property, inventory, invoices, equipment, or business vehicles that the bank can take if you fail to make your payments.

In order to qualify, you’ll have to have a great credit score, high monthly revenue, and a lengthy business history. It’s a tough loan to obtain, but can be beneficial if you’re looking for a high loan limit with low interest rates. As long as you can afford the monthly payments, then it’s a good option to consider. If you’re starting out, however, this isn’t the one for you, as most banks won’t work with any business who hasn’t been operating for at least three years. Be sure to explore the various banks and their guidelines before making a final decision about your funding needs.


  • Use the funds as you choose
  • Lower interest rates
  • Tax-deductible interest rates


  • Long application and approval process
  • Low approval rates are low
  • Strict eligibility requirements
  • Collateral and credit check may be required

Revolving line of credit

A revolving line of credit is another type of loan provided to a business by a bank or lender. The repayment terms are similar to that of a credit card, as more funds become available to you as pay off the loan. You only pay interest on the portion of the loan you use, as well, so it’s a great option for those who prefer consistent funding. Your eligibility will vary depending on the lender you work with, but they are often lenient compared to other loan types. If you’re a business owner who doesn’t have collateral to offer, don’t worry, as it’s not needed for a line of credit.

Fragrance businesses that prefer to receive capital as needed instead of a lump sum are likely to choose this type of funding. Day-to-day expenses eat into your working capital, and that can prevent you from boosting your marketing budget and stocking up for an upcoming campaign. Quick cash from a line of credit can solve these problems, as well as help you in an emergency.


  • Easy to access
  • Only pay interest on capital you use
  • 100% control over spending
  • No collateral needed


  • Interest rates are higher comparatively to other loans
  • The borrowing limit is low
  • There can be extra fees involved

Inventory financing

Inventory financing is provided to a business by a lender. A business is eligible for this type of loan based on their business history. This loan utilizes the inventory you plan on purchasing as  collateral, instead of personal assets like property, equipment, and vehicles. It’s a great way to stock up on goods and prepare for the peak seasons. As long as you’re prepared to pay the monthly repayments that the loan requires, you don’t have to worry about losing your inventory, but the lender will perform routine checks on your inventory, too.

Since there’s collateral involved, the interest rates are often reasonable. However, you may not receive the full amount you need in order to purchase your projected inventory. If this is the case for your business, you may want to shop around for a financing solution that better fits your needs. Businesses who depend on consistent inventory, such as fragrance businesses might prefer to utilize an inventory financing option.


  • Lower interest
  • Inventory is the only collateral required
  • Lenient eligibility requirements


  • You can only use the funds for inventory
  • Your inventory is at risk if you can’t make the monthly payments
  • They don’t always provide you with the full amount you need

Equity financing

Equity financing involves selling shares of your company to one or more investors. This will increase your capital, and you’ll be able to utilize the investors’ experience to improve your business operations. Keep in mind that, while you don’t have to repay the loans, they do own part of your company. They have the right to a share of future profits and an opinion during the strategizing process. You don’t just gain money, you gain business partners.

The most common equity investors are angel investors and venture capitalists, who choose to invest in businesses they believe are likely to profit in exchange for equity. Businesses who are just starting out and need the extra boost can benefit greatly from this type of funding. Companies who are looking to grow and expand can utilize the extra funding, as well. However, if you wish to retain full control of your fragrance business, this isn’t the right financing option for you.


  • Investors bring insight and experience
  • Fast access to large sums of capital
  • No monthly repayments required


  • Ownership is diluted
  •  Profits must be shared among the shareholders
  • The shareholders’ dividends are not tax-deductible
  • The investor’s cut may be more than the interest on a regular business loan

Equipment financing

Equipment financing is similar to inventory financing, as the equipment you purchase with the loan is used as collateral. Lenders who provide this type of funding differ when it comes to eligibility requirements, but it is known to be a relatively quick and easy process. Since you have collateral involved, that usually means lower interest rates, which every business owner can appreciate.

Businesses that require a lot of equipment, such as manufacturers, should consider this type of funding. However, know that you’ll only be able to use this loan for equipment. The other aspects of your business must be covered by your earnings or another loan.


  • Increased cash flow
  • Easy and quick process
  • Lower interest rates


  • You can only use the loan for equipment
  • You may lose your equipment if you fail to make the loan payments
  • Large monthly payments

Revenue-based financing

Revenue-based financing is a flexible type of funding that doesn’t require credit checks or business history evaluations. You retain full ownership of your business, but the investors have to be repaid. You’ll repay them with a percentage of future sales. This can be a short or long period of time, as it all depends on your sales volume. This is a good financing option for businesses who have a strong on-going revenue.

If you don’t qualify for regular loans due to poor business history, then revenue-based financing might be the next best thing. This is also particularly useful for businesses with fluctuating sales, since they won’t have to worry about fixed repayments. Keep in mind that the portion you pay them could end up being more than the interest you would have paid on a regular loan, though.


  • Quick funding
  • Retain full ownership in your business
  • Flexible repayment schedule based on sales revenue


  • Requires steady revenue
  • Cost of capital often higher than interest on regular loans
  • Not a viable option for all business types

Merchant cash advance

For businesses that bring in revenue through credit and debit card sales, a merchant cash advance is a good option to consider. The eligibility requirements are lenient, and you pay back the loan with future credit and debit card sales. Depending on the contract, you could have flexible or fixed repayment terms. Collateral isn’t needed, but the cost of capital is often higher than other loan types.

Startups who are looking for a boost have great luck with this type of financing. Most lenders require that you have a trading history of only three months before approaching them. Your credit score isn’t always a factor in their decision either. However, it’s not a loan that will help with your credit history. If you struggle to make fixed monthly payments due to seasonality or fluctuating revenue, this is a great choice.


  • Quick and easy to apply and get funded
  • No collateral needed
  • Flexible contracts


  • Higher cost of capital
  • No benefit to your credit history
  • The lender has the right to remove money from your account if you fail to make payments, regardless of sales volume

8fig: An Alternative Option for Fragrance Business Financing

8fig is a great choice for online fragrance business financing thanks to our flexible funding and tools to help you plan, manage, and improve your business as you go. We don’t just help you maintain your business, we help you grow with cash flow optimization, supply chain mapping, sales analytics, and more. 8fig also offers tools and resources to assist you in managing your operations. Continuous access to capital is just a part of the process.

Why use 8fig for fragrance business financing

8fig has a quick and easy application and minimal eligibility requirements. We don’t take any equity in your business and don’t require collateral, either. Plus, we offer a number of helpful tools and resources to help you grow in addition to continuous and flexible financing for your online fragrance business.Your payment terms and funding amount are based on your needs, and provide you with the room you need to grow.

How 8fig works

1. Apply

The application process is fast and easy. Answer some questions about your business and sales, and then provide basic information about your supply chain stages and expenses.

2. Connect your store and bank account

In order to provide you with an optimized Growth Plan, 8fig requires that you connect your store and bank account to the 8fig platform.

3. Get funded

With 8fig, you can get funded in just days. Since 8fig funding is continuous, you receive capital infusions into your business right when you need it.

4. Make adjustments

If something changes and you need to adjust your payments, remittance schedules, or even funding amount, you can always do so thanks to 8fig’s flexibility.

5. Grow your business

All that’s left to do is sell, sell, sell. With 8fig, businesses are able to scale 2.5x as fast.

What 8fig offers in addition to financing

8fig is more than just a financing solution, we’re a growth partner that will tend to your needs throughout the entire process. The platform is designed to assist you with supply chain mapping, cash flow optimization, and sales forecasting. This can’t be found with faceless banks, as they don’t consider you a business partner. In addition 8fig is designed for eCommerce businesses, so you can be sure we know the ins and outs of the industry.

If you want to increase your revenue and take advantage of operational tools, then 8fig is the place to go. We provide you with the tools you need in order to succeed, and funding is just one part of that process.

Who is eligible for 8fig fragrance business financing

If you’re a business owner who has been operating for 12 months, generates an annual revenue of $100,000 or more, and has made an average of $8,000 per month for the last three months, then you’re likely eligible for fragrance business financing from 8fig.

You can receive up to 90% of your supply chain costs, which will certainly take the strain off of your budget. 8fig provides you with a customized remittance plan, so that fixed monthly repayments don’t keep you from growing. You’ll finally have the cash flow you need to reach your full potential.

How to apply for 8fig financing

It’s easy to apply for 8fig financing, and it only takes a few minutes. Simply answer the questions and follow the prompts and you’ll get funded in no time!

The funding you need, when you need it.

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