An inventory line of credit is a flexible financing option for eCommerce businesses. It allows you to borrow money specifically for inventory and business growth, with interest charged only on the amount you use. Here's what you need to know:
- Funding Speed: With Onramp Funds, funds typically arrive in one to two business days.
- Repayment Options: Onramp Funds repayment can be a share of daily sales, a fixed schedule over 1 to 12 months, or a rolling cash line.
- No Personal Credit Check: With Onramp Funds, there is no personal credit check to see an offer.
- Eligibility: Onramp Funds requires $10,000 in average monthly sales and 6 months of selling history, plus a legal US business entity. It works with platforms like Amazon or Shopify.
This type of credit is ideal for managing seasonal inventory, covering shipping costs, or investing in marketing to grow your business. Onramp Funds offers working capital to eCommerce sellers.
How Does A Line Of Credit For Inventory Work ...
How Credit Lines Work
This section covers how to get approved, use funds, and understand the cost structure.
Getting Approved
The process starts by linking your store's data to the funding platform.
To qualify, you’ll need to meet these requirements:
- $10,000 in average monthly sales and 6 months of selling history
- A legal US business entity
- Sell on platforms like Amazon, Shopify, or Walmart Marketplace
"Applied, got our offer, and had cash in our bank account within 24 hours. Their Austin, TX based team was very professional and helped me deploy the cash to effectively grow our business." – Nick James, CEO Rockless Table [1]
Using and Repaying Funds
Once approved, you can use your credit line for key business needs. Common uses include:
- Buying inventory
- Covering shipping and logistics
- Running marketing campaigns
With the sales-based option, repayment is tied to your sales deposits, so you pay as revenue comes in.
Costs and Security Requirements
Onramp Funds charges a fee as low as 9% of the funded amount ($4,500 on $50,000), flat, disclosed upfront, non-compounding, longer terms cost more. Subject to credit eligibility; rates and terms may vary. The amount is sized to your combined sales, stated in your offer.
With these fundamentals in mind, let’s explore the benefits for eCommerce sellers.
Key Advantages for eCommerce Sellers
These credit line features offer three main benefits for eCommerce sellers.
Quick Access to Funds
With Onramp Funds, funds typically arrive in one to two business days [1].
"Onramp's process is very straightforward and easy to navigate. I had funds in my account within a day of final approval." [1]
Flexible Sales-Based Repayments
With the sales-based option, repayments are automatically calculated as a percentage of your sales, which means:
- They adjust with seasonal revenue changes.
- Lower payments during slower months.
- Payments are automated directly from your sales revenue.
Supporting Business Growth
Revolving funds can help you stock up in bulk, handle demand surges, and invest in marketing to boost growth.
"Onramp has simplified cash flow by automating everything: easy to request, set it and forget it payments - quick and fast!"
- Torrie V., Founder and Owner of Torrie's Natural [1]
Next, we'll dive into key factors to consider before applying for an inventory line of credit.
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What to Know Before Applying
Pros and Cons
Pros:
- No personal credit check to see an offer.
Cons:
- Your business must have $10,000 in average monthly sales and 6 months of selling history.
- Requires a legal US business entity.
- Requires an active seller account on platforms like Amazon, Shopify, TikTok Shop, WooCommerce, BigCommerce, Squarespace, eBay, Walmart, or Shopline.
Usage Guidelines
Set the Right Credit Limit
Before applying, take a close look at these factors to determine the credit limit that works best for your business:
- Your sales history
- Current cash flow needs
- Any existing debt obligations
Once you've done that, check out Onramp Funds to see how their funding options align with your business and the platforms you use.
Onramp Funds Solutions
Now that we've covered how to prepare for an inventory line of credit, let’s dive into how Onramp Funds supports eCommerce sellers with financing options.
Funding Options That Fit Your Business
Onramp Funds provides working capital for inventory and operational costs for eCommerce businesses.
Here’s what they offer:
- Sales-based repayments: With the sales-based option, payments adjust automatically based on your revenue.
- Fees: Onramp Funds charges a fee as low as 9% of the funded amount ($4,500 on $50,000), flat, disclosed upfront, non-compounding, longer terms cost more. Subject to credit eligibility; rates and terms may vary.
These funds can be used for a variety of needs, like purchasing inventory, covering shipping costs, launching marketing campaigns, and managing other operational expenses.
Seamless Integration with Popular Platforms
Onramp Funds works with 10 platforms: Amazon, Shopify, Walmart, TikTok Shop, eBay, BigCommerce, WooCommerce, Squarespace, Shopline, and Stripe.
Summary
An inventory line of credit offers eCommerce sellers access to funds. This flexible financing can be used to buy inventory, manage logistics, or invest in marketing. Onramp Funds offers working capital for eCommerce sellers.
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Onramp Funds
Funding built around your sales
Connect your store and see what you qualify for. Repay as a percentage of sales, with no personal credit check.
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