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Explore these capital alternatives to Shopify Financing to unlock financial freedom

Funding plays a crucial role in businesses of all sizes, and e-commerce brands are no exception

Photo courtesy of Andrea Piacquadio on Pexels
Photo courtesy of Andrea Piacquadio on Pexels

Opinions expressed by Digital Journal contributors are their own.

E-commerce has witnessed exponential growth globally in recent years. Thanks to the advent of technology and digitalization, platforms like Shopify and Amazon are now the most lucrative launchpads for aspiring entrepreneurs to start scaling ventures. However, with every new venture, a challenge is expected: funds. This is where Shopify has extended a helping hand to its store owners with Shopify Financing. Shopify store owners can get funds from the platform to build a thriving e-commerce brand, but it also comes with many setbacks. 

Shopify financing is a convenient option to grow your e-commerce store, but payments must be made to ensure your venture is met. You must meet the terms and conditions of the capital agreement to avoid losing access to your Shopify store. Sometimes, these funds can also come with higher repayment rates, leading to a cash crisis in the long term. This is where wise e-commerce business owners should explore more feasible alternatives to Shopify capital. 

Crowdfunding is becoming increasingly popular among scaling ecommerce entrepreneurs. With this funding option, the success of your business doesn’t solely rely on traditional bank loans but also on the generosity of your friends and family. You can pitch your business idea to people interested in investing in a similar venture. Soon enough, you will have a pool of funds to launch your e-commerce brand or a new line of products. 

Another low-risk option can be peer-to-peer loans. Here, successful entrepreneurs and small business owners team up on a mutually beneficial deal. This type of loan is quick but often comes with attractive rates as investors intend to create a source of steady passive income through them. However, if you manage to secure a deal with a peer at a reasonable payback rate, take advantage of the opportunity. 

Inventory financing can intrigue those seeking to explore more contemporary funding options. This high-risk, high-reward option allows confident business owners to leverage their inventory or e-commerce stock as collateral to secure a loan. This is recommended only for pressing financial needs when the business owner is confident that the products will sell like hotcakes and the loan will be settled quickly. 

Receivables factoring is another promising option for those who prefer a more traditional waltz. Businesses trade their incoming invoices to a third party at a discounted rate in this funding option. This brings an invaluable line of credit to fund business growth. It is a strategic move transforming receivables into liquid assets and boasts a proven track record among e-commerce brands. 

Shopify store owners desperately seeking a replica to Shopify capital can explore third-party platforms offering the same benefits on reasonable repayment terms. E-commerce funding platforms like 8fig, Outfund, Clearco, and Wayflyer support DTC e-commerce brands and stores by providing the capital required to scale the business. 

Funding plays a crucial role in businesses of all sizes, and e-commerce brands are no exception. For Shopify store owners, the journey will be an exhilarating adventure. With so many options accessible, they can make calculative decisions to find the best low-risk, high-gain alternative to Shopify capital and take their businesses to unprecedented heights.

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Written By

Jon Stojan is a professional writer based in Wisconsin. He guides editorial teams consisting of writers across the US to help them become more skilled and diverse writers. In his free time he enjoys spending time with his wife and children.

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