Resources for Small Business

8 Easy Funding Options for your eCommerce Business

With banks tightening their lending criteria and interest rates skyrocketing, traditional loan terms have left bootstrapping businesses looking for easier lending options. No matter the economic climate, funding is the biggest challenge facing small startups and eCommerce businesses so if you too don’t have the funds to get your venture off the ground, here are 8 ways to raise money.


1. Use your Rainy Day Reserve


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Personal savings work well when you are not sure if your eCommerce business is not going to yield high returns from the very start and you want to avoid the high cost of borrowing. Using a part of your retirement reserve at this stage helps you avoid high-interest rates, costly and complicated loan applications, and the best part is that your small business remains undiluted.


2. Get your Hands on Credit Cards for Quick Money


photo credits: quickmoneyblogs

Credit card is one of the easiest ways to access quick cash for an eCommerce business but there is a downside to this painless option. If your eCommerce business does not promise consistent cash flow for making the minimum payments, you could end up paying off your debt for a longer time period at a high-interest rate.


3. Approach a Venture Capitalist


photo credits: atsolucoes

Having a VC company or a local investor to fund your eCommerce business will mean having a cash infusion that compels you to give up on a percentage of your profits. Working with venture capitalists or local investors lets you take advantage of the experience and expertise of the business they are investing in and be more confident of better business outcomes down the line. Venture capitalists also have a solid business network they can connect you with for lucrative business development opportunities that can accelerate the growth of your eCommerce business.


4. Apply for a Business Grant


photo credits: ebusinessstartups

Another funding option to raise money for your eCommerce business is to apply for a business grant. Small startups and eCommerce businesses are the backbones of a progressive, developing economy and the government has made provisions for funding such ventures provided they qualify to apply and fulfil all the qualifications. So try your luck, because you never know!


5. Leverage a Line of Credit for Flexible Financing


photo credits: moneycontrol

Line of credit is an unsecured loan that works like a revolving account which means an eCommerce business can borrow money against the repaid amount at any given time without having to go through the hassles of the reapplying. While the interest rates of a line of credit are higher as compared to home equity lines, the option is still more affordable as compared to a credit card. The best part about leveraging a line of credit is you will only pay interest on the amount you use and not on the amount that is approved. Being an unsecured product, a line of credit may not give you as much money as an equity line but then again it is great if you don’t want to put your valuable assets on the line for your eCommerce business.


6. Capitalize on Small Business Crowdfunding


photo credits: safebee

Several eCommerce businesses have had success with online crowdfunding. It is a great way to raise money for your online business because it also helps create a buzz about your offerings via a crowdfunding website. Crowdfunding, however, requires you to give something back to those who have helped you raise the fund and this usually goes in the form of freebies that are recently launched depending on the fund raised.


7. Consider a Home Equity Loan for Attractive Interest Rates


photo credits: marketleader

You can consider this option to fund your eCommerce business if you own a house and have more than 50 percent of the property’s market value as equity. If it is, and you also happen to have a good CIBIL Score (Credit Rating), you can get a personal loan at an attractive rate of interest keeping your home as collateral.


8. Draw on a Personal Loan to Avoid Losing Your Collateral Asset


photo credits: malaysiascout

A fast and easy funding option is applying for a personal loan online. All you need to do is go online, check your eligibility, complete a quick application process, upload the documents, and have the money transferred to your account in minutes on approval. An online personal loan that comes with a line of credit also accompanies flexible repayment tenures and no usage, no interest facility. You also get a credit card using which you can withdraw the entire approved limit or use as much as you need and pay interest only on that amount.


Which is the Right Funding Option for You?

If you want to exercise complete control over the cash flow and have the ability to make regular payments, an instant loan with a line of credit is the best way to kick-start your eCommerce business while keeping your assets and lifetime savings safe. It will help you during slow months by giving you the breathing room you need. When used wisely, a personal loan with a line of credit will bring you the freedom to be 100% vested in making your eCommerce business work.

Author bio

Shiv Nanda is a financial analyst who currently lives in Bangalore (refusing to acknowledge the name change) and works with MoneyTap, India’s first app-based credit-line. Shiv is a true finance geek, and his friends love that. They always rely on him for advice on their investment choices, budgeting skills, personal financial matters and when they want to get a loan. He has made it his life’s mission to help and educate people on various financial topics, so email him your questions at

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