Sporting goods financing

Sports activities are a popular pastime for many consumers, so sporting goods are in high demand. Those who sell sporting goods online therefore have a large market of potential customers and the ability to bring in great profits. However, just like any other business, companies who deal in sporting goods face some challenges. Choosing to secure sporting goods financing can help businesses succeed, even when cash is tight.

Maintaining optimal inventory levels is a must if you want to build a strong business. You’ll need to keep up with the latest trends, which means preparing for product launches and spikes throughout the year. When it comes to sporting goods, trends and fads come and go quickly. Changes and improvements must therefore be incorporated into your budget, as well. However, most businesses don’t have the necessary cashflow to pay for all these upfront costs, let alone the many expenses associated with inventory procurement and the supply chain.

Sporting goods financing allows businesses to manage operations more effectively, without the worry of lack of cash. When you have enough capital, you can invest in inventory, marketing campaigns, and growth. There are several financing options available for online sporting goods retailers, so let’s take an in-depth look at your choices.

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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 Sporting Goods Financing

As with any online retail business, those that sell sporting goods need to manage a complex supply chain in order to obtain goods to sell. There are numerous costs involved with this, many of which must be paid before the seller brings in any revenue from sales. The cash flow crunch that ensues can create massive challenges for a business, which will struggle to procure inventory, pay day-to-day expenses, and market their product. Sporting goods financing can provide businesses with the capital they need to avoid this problem.

Before choosing a funding option, however, it’s wise to take a closer look at your budget. Minimizing your costs can get you started on the right foot. Then, determine your priorities, the amount of funding you need, and your ability to pay it back according to a set timeline. Make sure to forecast your sales and future costs, so you can prepare for the long term, as well as the short term.

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If you do choose to pursue sporting goods financing, be sure to shop around to gain a better understanding of your options. Read your agreement or contract thoroughly and feel free to negotiate for a better deal. Here are some of the top funding options available.

Sporting Goods Financing Opportunities

After researching the active banks and lenders, you might be overwhelmed. There are many financial companies to choose from and each one offers unique loan types. For example, one lender could approve you instantly for a line of credit, while another would reject your application due to a lack of proper trading history. It’ll take some time in order to find the right lender and loan type. To help you in your search, we’ve listed the best loan types for businesses in the sporting goods industry.

sporting goods financing

Bank loan

If you have a long business history and a good credit score, you may be eligible for a bank loan. A bank will give you a lump sum of capital which you can use for purchases, regular expenses, expanding operations, and more. You’ll repay the loan with fixed monthly payments, depending on your agreement. Most of the time, the interest rate will be on the lower side, as you’re considered a low risk business after meeting all the qualifications. This can include collateral, but it depends on the financial institution and the type of bank loan you’re striving for.

Keep in mind that a bank loan is difficult to obtain, due to the strict eligibility requirements. Often, they ask that businesses have at least three years of trading history, great credit scores, and valuable collateral. Due to these guidelines, the approval rates are low. So, do your research before approaching the bank, as the application process is long and tedious.

Revolving line of credit

A revolving line of credit provides businesses with consistent cash flow for day-to-day operations. It can help cover emergency expenses or last-minute purchase orders, too. Similar to a credit card, you’ll gain access to funding as you repay the loan. Your limit will be determined by your business history, but they often have lenient requirements, so obtaining a line of credit is fairly easy.

Keep in mind that this loan type asks for higher interest compared to other types. The borrowing limits are also on the lower side, as it’s not meant for large purchases. Depending on your funding partner, extra fees may be involved, so read the contract carefully before signing on the dotted line. Still, a revolving line of credit can be helpful for businesses striving to maintain consistent capital.

Inventory financing

In order to sell goods, you require consistent inventory. This can be costly to procure. Therefore, many businesses choose to obtain funding specifically to stock up on inventory. Inventory financing is secured with collateral, which is the inventory itself. It’s a quick way to get the cash you need to fulfill orders. This type of loan is often easy to obtain, too, as most lenders have lenient requirements.

Keep in mind that you may not obtain all the funding you require to pay for a large order. You’ll have to determine if you can afford to cover the difference, as well as make payments on the fixed monthly bill they ask of you. Some lenders may even ask for a loan minimum that’s too high, so it might take some searching on your end before you find the right lender. They may also conduct regular evaluations on your inventory.


If you don’t qualify for regular loans, then crowdfunding might be able to provide you with the funding you need. Crowdfunding involves pitching your product or business idea to a group of potential investors in order to gain funds to launch it. There are many crowdfunding platforms out there that give you access to potential funders, but you’ll have to convince them that your idea is worth their time and investment.

Crowdfunding can get you fast cash, but it’s not guaranteed to succeed. In fact, a large percentage of crowdfunding campaigns don’t raise the amount of funding they require. If you do get funded, however, you don’t need to pay back the funds in the traditional sense. Instead, you can give your investors rewards or even a small share in your business. You also retain full control over the project.

Equity financing

If regular loans aren’t working out, or you aren’t able to meet regular loan repayments, then you can sell shares of your company to increase capital. This is called equity financing. The most common sources of this type of funding are angel investors and venture capitalists, business people who seek out profitable ventures in which to invest. In most cases, you’ll pitch your business idea to such individuals and firms, and if they believe in your cause, they’ll offer you large sums of money in exchange for equity.

Giving up equity dilutes your ownership. These investors now own a portion of your business, and you’ll need to share the profits with them. Equity investors also bring with them expertise and experience, which they will share with you to help increase profitability. They will also likely play a role in the management and decision-making in your business, so be careful who you go into business with. If you don’t like the idea of giving up shares in your business, equity financing probably isn’t the right choice for you.

Revenue-based financing

If you have consistent revenue, then you can use it to secure revenue-based financing. This type of financing can provide you with necessary funding for your operations, which you’ll repay with a percentage of your future sales. You won’t need to sacrifice ownership, and there’s no credit checks involved. The amount of funding available is dependent on your average revenue, and will be decided between you and your chosen funder.

Revenue-based financing is particularly helpful for businesses with cyclical or fluctuating revenue. These businesses may struggle to make high monthly repayments during slower sales months. With revenue-based financing, their repayment sums are dependent on their revenue, so they can pay less when less revenue is coming in. While there are definitely benefits associated with this type of funding, it’s often more costly than traditional loans.

Merchant cash advance

If you’re in need of quick cash and don’t qualify for regular loans, then a merchant cash advance may provide you with the funds you need. Lack of business history and lower credit scores aren’t always a factor in eligibility when it comes to this loan type. Collateral isn’t required to secure it either, so you won’t have to worry about risking your assets. In order to pay back a merchant cash advance, your funding company will take a percentage of credit and debit card sales.

This loan type is easy to obtain, but has high costs attached to the contract. You’ll only be eligible if you have regular revenue from credit and debit card sales. Keep in mind that it will often turn out to be more expensive than a traditional loan. If you’re looking to build credit history, this loan won’t help you, either. You’ll have to take other steps to improve your score. Plus, the lender can remove money from your account, regardless of sales volume.

8fig for Sporting Goods Financing

If you sell sporting goods online, 8fig might be the financing solution you need. 8fig offers eCommerce sellers Growth Plans that provide you with the funding, tools, and resources you need to grow their businesses. Funding from 8fig is continuous, meaning you get regular cash injections to power your supply chain, and it’s flexible, so you can change your plan if the need arises. It’s a unique solution designed just for eCommerce, so you can be sure 8fig understands your business.

Why use 8fig for sporting goods financing

Ensuring you have enough inventory to keep up with sales is a key part of running an online sporting goods business. But all those supply chain costs add up fast. 8fig can provide funding for up to 90% of your supply chain costs, allowing you to stay in stock. In addition, 8fig’s financing is aligned to your cash flow, ensuring that you have the capital you need when you need it.

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 offers a unique financing plan optimized for eCommerce businesses, but it’s not the only way we help you grow your business. We offer tools to improve your operations, forecast sales, and manage cash flow all on one platform. When you sign up for an 8fig Growth Plan, you get everything you need to fund, manage, and grow your business.

At 8fig, we see ourselves as your partner for growth. We help you build a plan for long term success, and then provide the funding you need to make that plan a reality. You’ll receive a personalized Growth Plan designed specifically for your business and your individual supply chain needs. This gives you the ability to reach your full selling potential.

Who is eligible for 8fig sporting goods financing

When it comes to eligibility requirements, 8fig doesn’t require a high credit score, collateral or a years-long selling history. Instead, 8fig will take a look at your sales revenue over the past year to determine your potential for growth.

The application process is quick and simple at 8fig. If you’ve been selling a product on the internet for at least 12 months, have an annual revenue of $100,000 or more, and have made an average of $8,000 in sales per month for the last three months, you’ll likely be eligible for a Growth Plan from 8fig.

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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