{"id":18746,"date":"2022-05-11T09:44:30","date_gmt":"2022-05-11T07:44:30","guid":{"rendered":"https:\/\/trilogi.com\/blog\/boost-your-online-store-with-ecommerce-financing\/"},"modified":"2026-10-23T18:31:42","modified_gmt":"2026-10-23T16:31:42","slug":"boost-your-online-store-with-ecommerce-financing","status":"publish","type":"post","link":"https:\/\/trilogi.com\/blog\/en\/boost-your-online-store-with-ecommerce-financing\/","title":{"rendered":"Boost your online store with eCommerce Financing"},"content":{"rendered":"\n

If you\u2019re a DTC eCommerce store and want to grow fast, you need financing. One of the best options for growing an eCommerce business is revenue-based financing.<\/p>\n\n\n\n

Why is financing so important for your online business?<\/strong><\/p>\n\n\n\n

eCommerce businesses often struggle with cash flow, since you always need more funds to grow; this problem isn\u2019t caused by poor cash management or slow-paying customers. It\u2019s caused by suppliers.<\/p>\n\n\n\n

Let us explain.<\/p>\n\n\n\n

One of the most significant costs for any online business is buying inventory. Most eCommerce companies stock up on inventory, as in the fashion sector with Fast Fashion<\/em>, and the reason is obvious: prices are much lower and they get a higher gross margin.<\/p>\n\n\n\n

But there\u2019s a catch. Payment terms are almost always terrible, and those terrible terms are why eCommerce businesses need financing. Most online stores have to deal with the classic 30\/70 split: 30% paid on order and 70% on shipment. It\u2019s these terms that create the cash flow problem.<\/p>\n\n\n\n

Let\u2019s look at an example to understand why it\u2019s a problem:<\/p>\n\n\n\n