Most ecommerce and businesses don't have an abundance of cash on hand, so they resort to reinvesting sales into online ads and inventory. But the long delay between buying inventory and gaining new revenue leaves them feeling handcuffed, limiting their spending and overall growth. The bottom line is, if you can only afford as much as you are currently selling, then you’re simply staying afloat and missing the opportunity to excel.
To improve cash flow, many sellers have heeded these tips:
- Expand your sales market by thinking about new customers or products
- Dig into operating expenses, where can you streamline or cut out excess fees
- Liquidate old inventory via a flash sale or online push
- Encourage loyalty with discounts or rewards for multiple purchases
- Consider a referral program to build word-of-mouth traffic and sales
Try out the tips above, and then consider an alternative card to increase your cash balance. We’ve found several solutions to increase the net terms on your inventory by putting spend on cards that didn’t previously accept payment. Payoneer and Plastiq are two solutions that allow you to extend your net terms and pay with a credit card. Add Brex, which offers a 60-day, interest-free, line of credit with no personal guarantee or fees and you can extend credit close to 80 days.
Now that you don't have to worry about paying within 30 days, the newfound freedom will allow you to focus on the things that matter. There’s no catch or hidden fees—the way these companies make money is largely off the interchange—or fees paid by merchants for accepting credit cards. Plastiq and Payoneer have fees to users, but Brex does not, and none of them require a personal guarantee or need your SSN / FICO score to get access to capital.
Using a combination of these tools enables companies to get a limit twice what they normally spend in a month. You can reinvest your sales revenue into the business instead of saving it for ads. Without taking more outside funding and diluting ownership, these tools will help you succeed.
So go for it, take the risk. We got you.
Brex is a corporate card for ecommerce that is financing built for the way you work. It is not a loan and not a cash advance, but rather 60-day interest-free line of credit based on your trailing 30-day sales. Brex is also a trusted partner of Zentail. Earn up to a $5,000 credit towards your Zentail contract when you sign up with Brex. Learn more about this offer.