Outside Financing for Sellers | Instant Advance
When it comes to running a business — especially an Amazon business — you’re not going to grow unless you invest. You know what they say, you’ve got to spend money to make money. But as you’ve likely experienced time and time again, Amazon’s two-week payment delay makes it difficult for you to invest in anything because you’re in a seemingly never-ending cycle of cash flow gaps. That’s why many marketplace sellers turn to outside financing for help. So when should you do the same?
Here, we outline 5 signs your business is ready for financing.
1. You’ve proven your product
At the end of the day, you don’t want to borrow money to invest in a product that’s not going to sell. Instead, you need to be confident in its ROI. So make sure you invest in inventory that is already selling well for you — or that looks promising. To confirm that something is promising, look up its selling history on Amazon or through a product research tool.
2. You’re on a path to scalability
Chances are, if you’ve proven your product, you’re *this* close to achieving scalability. You just need to overcome cash flow gaps and maintain a steady source of inventory so you can continue meeting demand, even as it grows. Financing can help you scale your business fast — after all, it will make your business more efficient, help you increase profits, and minimize expenses in the long run, which leads us to our next point...
3. Opportunity cost is in your favor
Sure, there is a cost to using outside financing — but did you know there is a cost to not using it? If you don’t seek outside financing, you may not be able to replenish inventory when you need it, which means you can’t meet demand and instead risk experiencing a stockout. The costs there could be dire — after all, you forfeit sales and could lose your account altogether, so you’ll have no income to speak of. With financing, not only will you be able to continue selling, you’ll likely sell more and sell faster so the associated costs should be covered and then some.
4. You’re approaching a seasonal surge
As is the case with most businesses, you likely experience busy and slow periods. Plain and simple, you need to stock up on inventory to prepare for seasonal surges in demand. Unless you have a large pool of funds on standby, you’re going to need financing to help with this bulk investment.
5. You have strong account health & sales performance
When it comes to financing, your chances of getting an approval are much higher if your sales are strong and your account is healthy. After all, lenders need to be confident in your ability to make a return and pay them back. Some, like Payability, look solely at this information to make their decisions (that means no credit checks required and you can get paid in 24 hours!). Payability is a financing company designed specifically for marketplace sellers like you — they understand your need to get paid faster and in real time have created a number of products to help make this happen.
With Instant Advance, Payability will buy a certain amount of your future receivables (up to $250,000) up front and at a discount, giving you a large lump sum of cash to buy bulk inventory or invest in other growth areas. Gina Goldring, a fellow Amazon seller, was able to grow her business by 50% in just one month after her first Instant Advance from Payability.
If you need daily payouts, their Instant Access option might be a good fit — with this solution, Payability pays you your Amazon income one business day after making a sale. They also offer a Seller Card to give you even faster access to your income plus 2% cash back on purchases.
Since 2016, Payability has helped more than 2,500 marketplace sellers buy and turn more inventory more quickly. In fact, sellers who use Payability grow their businesses 2.5x faster than their competitors. Learn more and see how you can achieve this growth by visiting http://go.payability.com/AwesomeDynamic. You’ll get a $200 sign on bonus and discounted Instant Access fees just for being referred by Awesome Dynamic.