Ricardo Pero launched a business that lends money to e-commerce companies to fund their inventories.
Most business owners will buy inventory with their own money, and with all of their capital tied up, they have nothing left to do but stress out.
But there is another way of doing things which is use other people’s money to fund inventory, so you still have your own money to invest into growing your business (advertising, product diversification, systems, people, etc.)
Tune in for a great conversation on the challenges people run into while funding their own inventory and how SellersFunding can help you do things differently.
Let me guess…
You have a great product, you’re ready to take it out on the market, and you’re hoping you’ll get great reviews.
By investing your own money, you think you’re in control.
But in reality, it might just be the other way around.
Why?
Because now, all your money is tied up in the inventory and you’re stressed about it.
And that’s normal.
After all entrepreneurs too can be emotional and reactive.
You have to use your own money to fund your own inventory and to grow your e-commerce business.
But how are you going to operate your business when you’re super stressed about the money tied up in your product?
That’s right.
Inventory financing is tough.
But what if there’s another way to accelerate your company’s growth while using other people’s money for financing?
You’ll still be able to invest your own money into expanding your e-commerce business. That will give you leverage in front of your competitors. And you’ll have the flexibility to really outgrow everybody else.
So, if you sell anything on the Internet, this post will be a game changer for you.
Let’s dive in.
The Inventory Financing Company that Tackles Cash Flow Gap
And not only.
But let me give you an example first.
Let’s say you’re going to spend $50,000 on inventory financing. Now, it’s $50,000 you can’t put into anything else.
Right?
Well, yes and no.
If you get outside capital, you will pay $5,000 in interest but because you get the same amount of money when you sell the product, your return will be much higher.
On top of that, now you’ve got that $45,000 to put into advertising, product diversification, innovative e-commerce business models, people, you name it.
These are all the things that will stimulate your company’s expansion and give you more freedom to plan in advance.
Remember that there’s also an ROI in taking money off the table so you can make better decisions.
Because, ultimately, you need an ROI not to just build your business, but to also relax a bit.
Introducing SellersFunding
Ricardo Pero, Founder and CEO of Sellers Funding, describes his business as an online funding for Amazon sellers.
In other words, SellersFunding provides funding for e-commerce sellers to run successful businesses.
Traditional business owners usually rely on their own resources and tend to be overly conservative in the way they borrow.
That’s because they don’t have a ROI mindset.
Fortunately, SellersFunding uses a sales prediction model that looks into cyclicality and sales performance and provides you with this information, so you can better plan your cash flow, reduce risk, and make more informed decisions.
Simply put, SellersFunding is a ROI-oriented inventory financing company.
This means you will know exactly when to order more inventory, how much you need and how much it will cost you.
But what about the cash flow gap?
Between the purchase order and the moment the product is available for sale, there’s a gap which — if your products are sourced from abroad — can take up to 100 days for that first sale to happen.
In essence, this is the problem that SellersFunding solves.
To bridge this gap, SellersFunding offers an interest only grace period of about 60 days from the moment the order has been placed.
In this manner, your business retains control over as much money as possible and the loan payment can theoretically come out of the profit margin.
3 Capital Qualifying Metrics That Nobody Tells You About
Qualifying for the capital is a slightly different process and you know it.
Originally, you’ve been told the success of the evaluation depends on traditional business metrics, cash flow metrics, structure costs and inventory levels.
But here’s where it gets interesting.
Amazon business reviews, customer feedback and account health can also qualify you for capital.
Those metrics are actually more important to SellersFunding because they are a better indicator of your commitment to your customer and ultimately your future performance.
Plus, you’ll have the upper hand in front of your competitors and higher chances to outrank them.
Why You Want to Choose SellersFunding Over Amazon Lending, SBA Loans, and Traditional Banks
After working in investment banking for years, Ricardo saw how inefficient traditional credit models were at accurately assessing e-commerce business risk.
On the other hand, SBA loans take many months before funding is received, while Amazon lending requires a year’s track record.
So, what makes SellersFunding more special?
Well, if you want to get capital from SellersFunding, you only need to show 6 months of track record.
Besides this, the application form takes about 5 minutes and is then run into the pre-qualification model of 3 million sellers. Depending on the length of your track record, running the model takes a few minutes to an hour.
Within the day you will get your answer and within 48 hours, your money. And on top of that, you can do it online.
Use Outside Capital to Fund Your Inventory and See Your E-commerce Business Skyrocket
If you’re using your own capital to fund all the growth of your business, you’re playing a little bit tight.
Your hands are tied, and you don’t have the flexibility to invest in the products you believe in. The things you know you should be doing in your business.
It’s like being on this hamster wheel where you’re caught. Just reinvesting more and more in inventory.
But that isn’t fair. You deserve to feel in control.
You deserve to have a clear mind during the process.
So, whether you’re just starting an e-commerce business from scratch or if you’re already selling on Amazon, I would highly encourage you to give SellersFunding a look.
If you take this new approach to inventory financing, you’ll finally see how things look on the other side.
You’ll have an accelerating business. You’ll have paid your debts. You’ll have the mental and financial freedom to make better decisions.
And this just goes to show you that if you do something really well, that’s how you change the world and get rich in the process.