Top 5 E-commerce Platforms That Allow Borrowing Money
With the rise of e-commerce, businesses nowadays are more inclined towards online stores to sell their products and services. However, starting an online business requires a significant investment, which is not always feasible for everyone. To overcome such financial constraints, borrowing money can be a feasible option. In this article, we’re going to discuss the top 5 e-commerce platforms that allow borrowing money to kickstart your online business.
1. Shopify Capital
Shopify Capital is an e-commerce platform that offers small business loans to Shopify merchants. The program works based on the store’s sales history, and the interest rates start at 6%. Shopify Capital is an ideal option for businesses with slow sales months as repayments are tied to your sales volume.
2. PayPal Working Capital
PayPal Working Capital is a lending program that lets PayPal users borrow funds to finance inventory or operating expenses. Borrowers can repay the loan through a predetermined percentage of their PayPal sales. The documentation requirements are minimal, and the interest rates are fixed, making it a popular choice among small businesses.
3. Square Capital
Square Capital is a platform that offers funds to small businesses using Square’s payment-processing system. The loan is based on the seller’s transaction volume, history, and growth potential. The platform offers flexibility, and the payback rate is dependent on your monthly revenue, making it an ideal choice for merchants with irregular sales.
4. American Express Working Capital Terms
American Express offers Working Capital Terms, which lets businesses borrow up to $2 million and pay it back over a few months. The program suits businesses with seasonal cash flows, and borrowers have the flexibility to switch between fix and flexible rates. American Express Working Capital Terms features competitive interest rates and does not require any collateral, credit checks, or application fees.
5. Amazon Lending
Amazon offers its merchants a lending program, Amazon Lending. The program works based on a seller’s Amazon performance, reviews, and sales history. The platform disburses loans ranging from $1,000 to $750,000 and has a repayment period of up to six months. The interest rates are competitive, and the application process is straightforward and quick.
Conclusion
In conclusion, starting an online business requires a significant investment, and sometimes, borrowing money can help ease the burden. The above e-commerce platforms serve as an excellent option for small businesses looking to finance their online stores. The platforms mentioned above offer favorable interest rates, minimal documentation requirements, and flexible payment options. Consider these platforms to fund your online business idea and bring your entrepreneurial dreams to life.
