About Wix Seller Financing
Wix sellers are involved in many industries, including beauty, sports, electronics, food, and more. As an eCommerce platform, Wix offers a wide variety of consumer goods, which leaves plenty of room for eCommerce businesses to move in and sell their goods. The algorithm favors those who have detailed content, clear pictures, competitive pricing, and high performance. So, make sure that you have useful keywords and clear descriptions when it comes to your products. It’s not often that the consumer scrolls past the first page, after all.
Wix financing will help you manage every aspect of your business, regardless of how long you have been in business or how many products you sell. You’ll need to stock up on the right inventory and fund advertising campaigns in order to gain traction. These expenses are due up front, which means you’ll need to cut unnecessary expenses and optimize your budget. Funding will make it that much easier for you to strategize, which will lead to more cash in your pocket.
Wix Seller Financing Opportunities
When it comes to funding, there’s a lot of information to sift through. Every bank, lender, and financing provider is unique when it comes to eligibility requirements, and each funding type will have a different pros and cons list. You’ll need to consider your current budget and future goals before signing on the dotted line. To help you with your decision, we’ve listed the best types of financing for Wix Sellers.
Bank loan
A bank loan provides businesses with a large lump sum of capital, which can be used for large purchases or expanding your operations. The interest rates are typically lower on bank loans than other types of financing since there are strict eligibility requirements involved. You’re considered low risk if you’re approved for such a loan. Collateral may or may not be involved, depending on your lender and bank loan type.
This type of loan does take some time to obtain, as the application is long and tedious. You’ll have to meet some strict requirements in order to gain funding, as this loan type has low approval rates. Many banks require a high credit score and long trading history, which might be a problem for eCommerce sellers. Banks are also less familiar with eCommerce than they are with more traditional forms of business, so they likely won’t be optimized for your needs as an online seller.
Revolving line of credit
A revolving line of credit provides businesses with access to consistent cash flow that can be used for day-to-day expenses, such as rent, utilities, and payroll. It’s also a good loan for those emergencies and last-minute purchase orders. It’s fairly easy to obtain, as your credit history isn’t always a factor. You can decide what you spend the money on and when, so long as it’s business related. Similar to a credit card, you gain access to funds as you repay the loan, and you only pay interest on the funds you actually take out.
This loan type typically has higher interest due to the lenient requirements involved. The borrowing limit isn’t meant for large purchases, so it’s going to be on the smaller side. Read the contract carefully, as some lenders will add extra fees for various reasons. Overall, this is a good loan for quick fixes.
Merchant cash advance
If you don’t qualify for regular loans, then a merchant cash advance might be the way to go. They have relatively lenient requirements and can get you the cash you need very quickly. You can repay a merchant cash advance as a percentage of your future debit and credit card sales, so you don’t have to worry about high monthly payments. This is great for businesses that have ups and downs in their sales revenue. Collateral isn’t required to secure a merchant cash advance, so you don’t have to worry about risking your business assets.
Due to its lenient requirements, a high cost of capital is typically a part of the contract. You’ll have to consider your budget carefully before agreeing to the terms. If you’re looking to boost your credit history, this loan won’t help you. You’ll need to take other steps to improve your score. Remember, if you can’t meet agreed-upon payments, your funder may have the right to remove money from your account, regardless of sales volume.
Inventory financing
Most successful online retail businesses, regardless of what they sell, require consistent inventory. If you’re a Wix seller, chances are you do too. You can obtain funding specifically for that reason. Your inventory will act as the collateral to secure the loan, which will allow you to fulfill orders that much faster. The process is quick and easy, as they have lenient requirements regarding eligibility.
Keep in mind that some lenders have a loan minimum that may be too high for you to afford. Sometimes, they don’t offer you the full amount that you need in order to stock your warehouse. You’ll need to consider if you can cover the difference and pay the monthly bill that comes with the loan. If you do obtain the loan, you may have to allow the lender to perform regular evaluations on your inventory.
Invoice factoring
Invoice factoring is a funding solution for businesses that experience a gap in time between issuing invoices and receiving payments for the goods sold. This can be a big problem for businesses that are short on cash flow, since they’ll have expenses due before they receive their revenue. An invoice factoring company will purchase your outstanding invoices at a discount, providing you with much-needed capital almost immediately.
The invoice factoring company will then collect the payment directly from the customer, before paying you any further amount due. Of course, they will take a fee for this service, and that fee varies depending on the value of the invoice, your chosen invoice factoring company, and your agreement. While this is a great way to get access to fast cash, it is often a costly funding option. In addition, if your customers fail to complete the payment, you may be held accountable.
Crowdfunding
Crowdfunding has become a more common way to finance ideas and business ventures in recent years. It involves pitching a product or idea in hopes that a number of investors will agree to fund your project. In most cases, successfully crowdfunded projects get many smaller investments that add up to the sum of capital you need. There are many popular crowdfunding platforms out there on which you can post your campaign and ask for investments. However, it takes time and effort to build an eye-catching campaign, and a large number of campaigns fail to reach their goals.
If you do raise the funds you need via crowdfunding, you’ll retain full control of your business and your project. In many cases, you won’t have to repay your investors either. Instead, you’ll offer them rewards or even equity in your business.
Equity financing
If other methods of financing aren’t working for you, or you struggle with repayment schedules, you can sell shares of your company to willing investors. These most often come in the form of venture capitalists and angel investors. These individuals and firms invest large sums of capital in businesses they believe will be profitable.
In exchange, they’ll receive minority shares in your business, which entitle them to a share of future profits and a stake in your business. If you need help optimizing your business operations, then their added experience will be beneficial, too. Their dividends aren’t tax deductible and may cost more than the interest you would have paid on a regular loan. Be careful who you sell shares to, as they now own a portion of your company. This can lead to disputes if you have a difference in opinion.
Revenue-based financing
If you have consistent revenue, you may be able to secure revenue-based financing. Under this arrangement, a funder will provide you with cash, which you’ll repay with a percentage of your future sales. You won’t need to dilute ownership, and you’ll have freedom in terms of how you spend the capital. This is particularly beneficial for businesses that struggle to raise the funds to meet large monthly payments. With revenue-based financing, your repayment amounts will fluctuate with your sales, easing the pressure.
There are many benefits to this type of financing, but it’s only available to businesses with consistent revenue. You most likely won’t have to undergo a credit check, as your business revenue is the deciding factor in revenue-based financing. However, this type of funding is often more costly than traditional loans.
8fig for Wix Seller Financing
8fig is an alternative option for Wix seller financing. Designed by eCommerce experts specifically for eCommerce sellers, 8fig knows the challenges that Wix sellers face. Therefore, we created a program that provides sellers on the platform with the means to plan, fund, and manage their business, allowing you to reach your goals and grow your business faster than ever.
Why use 8fig for Wix seller financing
Not every Wix seller can qualify for traditional funding, and many will struggle with fixed monthly payments. Since 8fig is designed with eCommerce in mind, our unique funding method will optimize your cash flow and ensure you have the capital you need when you need it. Instead of one lump sum of cash, 8fig infuses capital into your business according to your supply chain needs. Your remittance schedule is personalized to fit your unique needs. You can even change the details as you go. You won’t have to worry about going out of stock or falling behind with 8fig by your side.
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 more than a great funding solution for eCommerce businesses. We also provide you with the tools and resources you need to grow. You’ll be able to plan your supply chain, optimize your cash flow, forecast sales, and increase revenue all in one place. Unlike faceless banks, we’re going to be with you throughout the whole process—a business partner that succeeds when you succeed.
As an eCommerce business, you have a lot of moving parts to coordinate and costs to pay. 8fig provides you with tools that help you map your supply chain, analyze your sales, and much more all on one, easy-to-use platform. All sorts of Wix businesses will appreciate the chance to optimize their cash flow and improve their business operations.
Who is eligible for Wix seller financing from 8fig
8fig’s application process is quick and simple in comparison to other lenders. If approved, you can receive up to 90% of your supply chain costs, which certainly takes the pressure off of your budget. 8fig asks that you have a trading history of 12 months, a yearly sales revenue of at least $100,000, and have made an average of $8,000 in sales per month for the last three months before applying. If you sell a product online and fit those requirements, you’ll likely be eligible for an 8fig Growth Plan.
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!