What is an eCommerce business loan?

An eCommerce business loan is financing offered specifically to online businesses selling products or services through a website or app.

Some key points about eCommerce business loans:

• They provide capital to fund inventory purchases, marketing costs, website development, fulfillment infrastructure and other operating expenses.
• Loans can be collateral-free, and eligibility is easy based on online business revenues and transactions. They are unsecured or secured by assets like inventory, accounts receivable, etc.
• Flexible repayment tenures are offered based on the loan amount and use case.
• Interest rates can be slightly higher than traditional business loans but are competitive among online lenders.
• The entire application process is digital, with minimal documentation requirements and quick disbursal.
• Specialised for the needs of online sellers, these loans help meet working capital gaps and growth plans.
• Eligibility depends on factors like business vintage, annual revenue, sales records and applicant credit history.