e-Commerce Business Loans

e-Commerce Business Loans

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Only U.S.-Based Businesses are Eligible.

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Today, consumers are becoming more comfortable purchasing their items online with a simple click of a button. E-commerce companies and online shopping platforms such as Amazon have revolutionized the way consumers buy clothes, furniture, and food. E-Marketer expects the global e-commerce market to total $4.89 trillion in 2021 and is estimated to grow over the next few years.

As a small or growing e-commerce business, the evolution of online shopping will benefit you in the coming years. Until then, utilizing business funding options will help you stay on top of necessary business expenses and support fuel business initiatives.

An e-commerce business loan can provide small online businesses with funds to manage their capital flow, cover day-to-day expenses, fulfill seasonal demand, and more. There are a variety of different loan options available to help fund or expand your business.

First Union has provided funds to many businesses run by passionate owners who strive to deliver high-quality products daily. We are ready to help e-commerce businesses attain the necessary funds needed to be successful.

What is an E-Commerce Business Loan?

An e-commerce business loan is a type of industry-specific loan that provides funds specifically to online businesses that need financial assistance. It provides funds to manage capital flow, cover the day-to-day expenses, fulfill seasonal demands, marketing expenses, pay employees, and more.

Retail, even online, is often driven by consumer trends within the current marketplace. There will be times when an online business owner will have to spend money to make money, and capital is needed to purchase inventory, shipping supplies, and so on. Business owners will often utilize e-commerce business loans when funds are not available right away to cover these required expenses.

E-commerce business owners will use the funds from these loans to pay employees during a slow season, invest in marketing, and buy items to streamline their business. First Union is here to help! There are various loan options that small and growing companies can use to help your e-commerce business thrive.

How does a Bridge Loan Work

Types of E-Commerce Business Loans:

Several different types of e-commerce loans are available to help qualifying small and growing businesses. E-commerce business loans include:

  1. SBA Loans: Partly guaranteed by the U.S. Small Business Administration, traditional and non-traditional lenders offer SBA loans. The program provides highly flexible rates and terms ideal for small businesses. There are several variations of SBA loans that help well-established hotels and motels looking to expand.

    Businesses must meet the following requirements to be eligible:

    • Operate for profit
    • Be considered a small business, as defined by the SBA
    • Be engaged in, propose to do business in, the United States or its possessions
    • Used alternative financial resources, including personal assets, before seeking financial assistance
    • Use the funds for a sound business purpose
    • Not be delinquent on any existing debt obligations to the U.S. Government.

    Listed below are types of SBA loans that can benefit an e-commerce business:

    • SBA 7(a) loans: 7(a) loans tend to be the most common within the SBA family. With access to up to $5 million in working capital for 25 years, numerous industries find that these loans are undoubtedly adequate for their needs. Interest rates tend to be between 7-8% depending on trade and the nature of your business. Most opt-in for an SBA loan will fall under this 7(a) category.
    • SBA 504/CDC loans: 504 loans are particular. It provides long-term, fixed-rate financing through Certified Development Companies (CDCs), SBA's community-based partners who regulate nonprofits and promote economic development within their communities. If your business needs to purchase commercial real estate or perhaps a large piece of equipment, this may be the ideal loan program. Borrowers may need to provide 20% of the loan's total value, the SBA provides 40%, and the lender will give the rest. The cap on this type of loan is generally $5 million.

      Businesses must meet the following requirements to be eligible:

      • Have a tangible net worth of less than $15 million
      • Have an average net income of less than $5 million after federal income taxes for two years preceding your application
  2. Business Lines of Credit: Banks, financial institutions, and other licensed consumer lenders extend credit to creditworthy customers to address fluctuating cash flow needs of the customer. The maximum amount of funds a customer can draw from a line of credit is typically called the credit limit or overdraft limit.

    At a minimum, lenders will require your business to be operational for at least six months and able to earn $25,000 in revenue. Depending on the lender, a minimum credit score of 500 or higher may be required to qualify. By partnering with non-traditional lenders, companies can obtain their business line of credit within a matter of days.

  3. Short-term Loans: Short-term business loans can be highly beneficial during a growth period, fluctuating cash flow times, or a need for seasonal purchasing. Alternatively, long-term business loans typically include more significant funding amounts and lower interest rates and payments. If you know that taking the loan will put you in a position to pay back the loan quickly, a short-term loan may be the solution.

    The application process requires proof of ownership of your business, financial statements, tax information, P&L statements, and a copy of your driver's license. Lenders will check your business and personal credit as well. Once approved, companies can obtain their funds within 1-2 business days.

  4. Equipment Financing: Equipment loans provide the funds for companies to buy business-related equipment. Businesses will often need to purchase, replace, repair, or upgrade various equipment to process, manufacture, or produce their product.

    Equipment can include phone systems, computer monitors, printers, copiers, tools, specialized machinery, industrial equipment, and more. Most lenders will require three years of tax returns for the business, the purchase agreement of the equipment, personal financial statements, and identification from each owner.

  5. Inventory financing: Inventory financing allows you to replenish your stock without utilizing additional collateral. This type of business funding works well for retail shops that need to place large inventory purchases to keep their business streamlines with the current trends on the market.

    Most lenders will require businesses to be up and running for a minimum of six months to a year to qualify.

How does a Bridge Loan Work

How to Apply for E-Commerce Loans: Requirements and Getting Started

If your well-established e-commerce business has reached the point where expansion and new business initiatives will provide a significant profit, acquiring a small business loan may be the best optio

First Union is here to help.

Submit your business information below to determine if you qualify for any available small business loans. Our Funding Specialists will analyze your qualifications and will reach out to walk you through the following steps.

See Your Loan Options

Only U.S.-Based Businesses are Eligible.

Get Started

While each of the available loans have varying qualifications, lenders will typically ask for the following general information:

  • Business Operation History
  • Business Revenue Statements
  • Personal & Business Credit Scores
  • Collateral if needed

Traditional lenders and banks often involve collaterals and strict repayment schedules -stressing out borrowers who need capital to grow. Online lenders like First Union are providing businesses with the funds required to become successful. If you have questions in regards to e-commerce-related business loans, feel free to give us a call: 863-825-5626

Advantages of E-Commerce Business Loans

Not only can e-commerce business loans provide the required funding, but they can also offer other perks that can benefit you long-term as a business owner. Most retail business loans may offer competitive interest rates, predictable monthly payments, and credit building.

These types of loans can allow business owners to invest and accelerate their growth. Keep your business moving forward through the utilization of a retail business loan.

Choose First Union Lending As Your Premier Lender

At First Union Lending, we have an unwavering belief that small and medium-sized businesses deserve the right to access the capital they need to succeed.

Our goal is to build long-term, lasting relationships by providing business owners with what they need when they need it. We pride ourselves on being educated, knowledgeable, and caring about how we conduct business. We have voluntarily acquired much of the same licensing traditional banks require to cement our fiduciary responsibility to our clients and work culture.

We are here to consult, help you save, and guide you and your business to success.

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