What types of loans are available for eCommerce businesses?

Some of the main types of loans available for eCommerce businesses include:

1. Working Capital Loans: These provide short-term financing for daily operating costs like inventory, shipping, payroll, and other expenses. They are helpful in managing cash flow crunches.
2. Term Loans: They offer usually longer-duration loans from 1-5 years or more for major capital expenditures like acquiring a warehouse, upgrading software systems, or expanding to new product lines/markets. Such types of loans are helpful for business growth.
3. Inventory Financing Loans: These loans are tailored specifically to purchase inventory in bulk from manufacturers/distributors for the online store. They are essential for stocking new products.
4. Receivables Financing: This allows you to get funding against outstanding payments yet to be collected from marketplaces for completed sales. Such type of financing can help bridge the receivables gap.
5. Startup Loans: These are special loans for new eCommerce ventures to build and launch their online store/operations. They can help cover initial product development, marketing and operating costs.
6. SME Loans: Small and Medium Enterprises (SME) loans offer general business financing for small and medium eCommerce merchants with various needs. They offer flexible options without collateral.