Financing your inventory being a big amazon reseller can be quite intimidating. But if you play your cards right it doesn’t have to be like that. If you think you are short on inventory as an Amazon reseller you don’t have to make a rash decision. It is very easy to make rash decisions in such a situation but you have to keep yourself calm and compose.
Usually, as an Amazon Seller, you will require funding to expand your business. This will help you diversify your store and add new products to it as well. As now we are all going through a challenging economic condition period due to Corona Virus. Our business needs additional funds.
Right now the sales on Amazon are touching the sky due to lockdown. This is the right time to expand your business on Amazon. If the planet experiences the predicted recession by experts than customers will buy fewer nonessential goods. This means that sales are going to be the effect on a major level.
The best thing to do is to take a step back and consider all of your options. You have to find simple ways to get inventory funding for Amazon resellers. Here in this article, we are going to discuss some of these simple ways to get inventory funding for yourself.
- Funding Through Personal Savings
If you think that you have enough money in your bank account to support your inventory, this is the best way to make the next purchase on Amazon or closeout sales. There is nothing better to finance your Amazon reselling business through your own money. The best way to make it happen is by starting small.
This way you do not have to any external factors which become hurdles while financing your own business on Amazon. You do not have to go through a credit check or any kind of extra paperwork to finance your business. Also, try to save some of your savings for emergency coverups.
- Finding Through 0% Business Credit Cards
This is another simple and fast way to finance your Amazon inventory. If you are able to pay off your credit card balance every month then you should definitely go for this option. But, keep in mind the interest rate on a credit card are very high. So, if you cannot pay your bill every month using your credit card for funding inventory can become a little risky.
Paying money through credit cards for your inventory can put more balance than you can pay it off. The credit card has a limit. So, once you achieve that limit you cannot buy any more stuff through credit card.
- Bank loan
Getting a loan from a bank if you do not have any personal savings to fund inventory is another option. You can apply for traditional bank loans or for a line of credit as well. There are many traditional loans that also come with low-interest rates.
There are various types of loans that you can apply to fund your inventory on Amazon. All of these loans are given below
- Traditional loans
This is a type of bank loan in which people usually put some collateral to get money from the bank. Mostly the money you get from a bank in a traditional loan is equal or less than the value of your collateral.
- MCA (Merchandise Cash Advance)
MCA is another way to get funding for your Amazon inventory. It is one of the fastest ways to gets funds if compared to other loan options. There is a chance that you will get capital after a few hours of applying to MCA.
- Lines of Credit
This is another fast option to get funding for Amazon. At Amazon, the lender looks at various factors like the duration of the business and at least 50,000$ annual business revenue. Instead of using all the money in a single time you can save it and use it as required.
- Inventory Lines of Credit
Has your inventory appraised at your warehouse and at Amazon to get 80% of the appraised value in a business line of credit so you can grow your business beyond all the other limitations?
- Amazon loans
Finally, Amazon also offers resellers loans to selected qualified markets. You can apply for these loans. Amazon will get back to you on your reseller central dashboard regarding your loan application.
Amazon has an expiration date and it is all or nothing kind of policy. They will cut on the loan interest and repayments directly from your Amazon earning account.
So, these are some of the simplest ways through which you can get inventory funding for Amazon resellers.
BitX Funding is the online marketplace for small business owners looking to fund a project. We specialize in connecting small business owners with lenders who will compete for your business. We believe small business owners drive the economy and we are passionate about helping your company reach its full potential.
You can reach loans specialist by toll-free at 1-800-824-2407, or email at firstname.lastname@example.org or applying online here and we can guide you on which loans are the best fit for your business.