Creating a brand new business can be stressful, as there are so many important things you need to consider. When it comes to opening an e-shop, financing can be an overwhelming step. However, there are loans available to finance your Shopify store. With some research, you can get the right loan to get your business up and running.
One great option is Shopify’s very own financing solution: Shopify Capital. While there are certainly pros and cons, this loan option allows you to avoid long wait times and mountains of filed paperwork. However, Shopify itself will determine how much funding your project can receive. A Shopify Capital loan differs in many ways from a traditional bank loan. First, Shopify doesn’t require a credit check or try to take equity in your business. You’ll simply repay the loan through sales. It’s simple. Shopify will deduct a certain percentage or amount from each sale and automatically apply it to your loan. This is often an easy, no-worry solution to repayment, ideal for new and seasoned business owners.
For a more traditional option, many think of debt financing for a standard loan first. Examples of this include bank loans, lines of credit and cash advances. These options have the distinct benefit of keeping all the equity of your business in your hands. While investors may provide funding, they also take a portion of equity for themselves, allowing them to have a say in business decisions, future debt financing, and day-to-day operations. Choosing debt financing often allows a business owner to avoid this in their storefront.
However, debt financing can be a bit more complicated for e-commerce store owners. Depending on your financial situation, a bank may or may not choose to help with financing. If they do, it can require extensive paperwork, long wait times for approval, and extended stress. But if your credit is in good standing, this may be a preferred option for your e-commerce business.
If you want to grow your business into a larger company, equity financing could be the way to go. Offering stakes in your business to investors can create a solid foundation for a larger business. Having others invested in your business’s success can provide motivation and support that you may not find elsewhere. However, many business owners avoid this option because finding a good business partner is extremely difficult. Getting friends or family involved in your business can have dire consequences and put unnecessary pressure on your back.
Having complete control over your business gives you the power to make decisions on your own and truly be your own boss. Having others rely on you to make your business great can feel like too much, in addition to already running your own business.
Starting an e-commerce shop is an exciting venture, and you should feel excited to embark on the journey, not weighed down by others’ expectations and big loan repayment bills. Finding financing through online services is faster and easier than ever before. Going this route could have your store up and selling quickly and painlessly. While e-commerce is certainly a changing landscape, it is filled with unique potential as long as your online store is healthy and well-funded. Whether your store is filled with stunning paintings, hilarious t-shirts, or hand-made sourdough, get your shop up and running today and get in on the online sales action.
Members of the editorial and news staff of the Las Vegas Review-Journal were not involved in the creation of this content.