Ecommerce on the Rise with MCA Funding
Written by Team 365 finance
Online businesses have been thriving over the last two years, showing no signs of slowing down when it comes to their growth or popularity among UK consumers.
Unsurprisingly, there has also been an increase in demand from online businesses for flexible funding, up 47%* according to London-based lender 365 Finance. As a provider of revenue financing, this dramatic rise seen year-on-year, when compared to 2020, shows how quickly some online businesses are expanding, requiring extra finance.
SMEs frequently use revenue financing to assist with cashflow, for purchasing additional stock and equipment, and for the expansion or refurbishment of premises. However, in ecommerce, the cost of continually updating and improving online shop fronts often also requires extra investment, with flexible finance a simple and fast solution, with no APR, fixed term or fixed monthly payments.
As the ecommerce industry continues to grow, the average amount advanced by 365 Finance to online outlets has increased by a substantial 35% during 2021, with a reported 56% rise in 2020 compared to 2019.
Managing Director at 365 Finance, Andrew Raphaely, said, “We are now working with more and more SMEs in ecommerce, as the COVID-19 pandemic has accelerated even further the needs and desires of consumers to shop online from the comfort of their own homes.
“It’s important to appreciate that online businesses have to invest heavily in their online presence, in terms of website development, putting funds aside for monthly running costs, search engine optimisation and the advertising and marketing required to make an ecommerce venture a success.
“The fact that with revenue financing, these ecommerce businesses are only required to repay funds through a small percentage of their online transactions, means their cashflow isn’t negatively impacted, as they only repay the advance when customers pay them.”
For further information about how revenue financing can assist online businesses, and how to apply for £10,000 to £400,000, go to Online Businesses Finance | 365 Finance or read through this helpful guide to ecommerce funding.
* Latest data from 365 Finance, as of November 2021.