What are the best financing options for eCommerce startups?

Some of the best financing options for eCommerce startups typically include:

• Venture Capital (VC) Funding: VC firms provide equity financing for innovative startups with high growth potential, which is useful for building capabilities.
• Angel Investors: These are high networth individuals who invest their own capital in startups. This type of financing offers a flexible structure.
• Crowdfunding: This refers to raising small capital amounts from a large number of investors through online platforms.
• Accelerator Programs: These are time-bound programs provide mentorship, resources, and access to investors.
• Business Incubators: These provide workspaces, mentoring, tools and networks to nurture startups. They may also invest capital.
• Government Small and Medium Enterprises (SME) Loans: These are subsidised loans and grants for startups by Government institutions.
• Business Credit Cards: They can help manage operating expenses and cash flow for early-stage needs.
• Asset Financing: They refer to loans against property, equipment, or securities to arrange capital.
• Invoice Financing: They refer to capital against outstanding invoices due from customers.
• Gold Loans: Loans offered against gold jewellery/ornaments of certain value and purity as collateral.

The ideal financing mix depends on capital needs, stage of growth and promoter credentials.