Inventory Financing: A Guide for Retailers Across Industries

Posted on by Amanda Levine

Retailers today face numerous challenges that can stretch their resilience to the limit. These include managing cash flow, aligning with consumer preferences, and maintaining adequate inventory levels. All these demand upfront costs that can lock up precious company resources. Sales’ volatile nature and unpredictable economic conditions can complicate financial forecasting further. In such a scenario, inventory financing offers a viable solution that allows inventory-heavy retailers to efficiently manage their stocks without straining their finances.

What is inventory financing?

Inventory financing involves using your current inventory as collateral to access additional funds to invest in more inventory. This way, you can stock your shelves consistently without depleting your cash reserves. As a result, your cash flow is freed up for other vital aspects of your business. 

You might wonder if retail inventory financing is different from wholesale inventory financing. While both serve the purpose of funding inventory purchases, the latter typically caters to wholesalers or distributors buying in bulk to supply retailers. The nuances lie in the scale and the inventory’s final destination, but the basic idea remains the same: leveraging future sales for additional funds today. 

2 categories of inventory financing

This financial arrangement can be broken down into traditional and alternative inventory financing options. Both categories allow businesses to manage stock levels without freezing up operational funds.

Traditional inventory financing

In the traditional model, a retailer applies for a loan, typically at a bank, with the inventory as collateral. This option fits well for businesses with a reliable stock turnover, as they can repay the loan with proceeds from sold inventory. Interest rates and terms are set upfront, which might be challenging during slow sales or when collections are delayed. Key considerations include:

  1. Loan amount – The loan amount is typically around 50% to 80% of the inventory’s  

resale value. 

  1. Interest rates – Banks typically set interest rates upfront. These rates vary but usually range from 3% to 9%. 
  2. Repayment terms – Repayment terms are typically structured, often set over longer periods with fixed installments that businesses need to factor into their budget. 
  3. Eligibility and application process – Banks typically require a good credit score and a solid business history, which might be tough for retail startups and small businesses. Another disadvantage is that the application and approval process is usually lengthy and tedious. This can be a problem if you need quick access to funds. 

Alternative inventory financing

On the other hand, fintechs like Kickfurther and other alternative financing companies offer innovative inventory financing, like credit cards, lines of credit, and inventory funding. This method suits retailers looking for adaptable financing to match inventory turnover or seize unexpected opportunities without being constrained by rigid loan terms and conditions. Before you apply for any alternative inventory financing, do your due diligence and assess these factors: 

  1. Fund amount – Certain types of alternative inventory financing, such as inventory funding, can cover up to 100% of the inventory’s liquidation value. 
  2. Interest rates – Rates for alternative financing companies can range widely from 8% to as much as 99% in extreme cases. However, the cutting-edge inventory funding company Kickfurther offers retail store funding for as low as 1% a month. 
  3. Repayment terms – Repayment terms for alternative inventory financing are more flexible as they can be suited for ongoing capital needs or large, one-off purchases. 
  4. Eligibility and application process – Because it doesn’t emphasize credit scores, it’s easier to obtain even for retailers without traditional loan qualifications. Processing times are also faster, with many fintechs offering quick online applications.

The benefits of inventory financing 

Retail inventory financing offers these compelling advantages that can support your retail business’s growth and stability: 

Enhanced liquidity 

Inventory financing for retailers preserves cash reserves by providing working capital for inventory maintenance and expansion. This is particularly beneficial during peak sales periods when you must stock up to meet increased demand. By leveraging inventory for financing, you can keep your operations running smoothly without cash flow disruptions that can happen with traditional loan models.

Growth and investment opportunities

By releasing capital that would otherwise be stuck in inventory, you can invest in marketing, expansion, and other growth-oriented initiatives. Inventory financing for startups and small retailers is particularly advantageous because it enhances cash flow leverage. With the extra funds, they can seize new market opportunities, expand product lines, and enhance their competitive position.

Improved access to capital

Because the additional funds are backed by the inventory itself, financing companies are enticed to do business with retailers who might not qualify for unsecured loans. This levels the playing field by providing more opportunities for retailers of all sizes and financial positions to access the capital they need. 

Who can benefit from retail inventory financing?

These are just some of the businesses that can fully leverage the strategic power of inventory financing for retailers:

  • Seasonal Retailers like holiday decorations outlets that usually prepare for the high season
  • Fashion Retailers that need to stay current with rapidly changing trends
  • Electronics Shops that want to offer the latest gadgets before their competitors do
  • Specialty stores that regularly secure seasonal or gourmet food items
  • Automotive Parts Retailers who keep a diverse stock for various vehicle models
  • Furniture and Home Decor Outlets that typically invest in large, costly inventory pieces
  • Ecommerce businesses updating their offerings to keep up with the global market

From seasonal shops to ecommerce platforms, inventory financing is a strategic asset for various businesses. But to secure the robust financial support and flexibility to succeed in the competitive retail environment, you need the right inventory financing partner. And that’s where Kickfurther comes in.  

Why Kickfurther?

Kickfurther isn’t your typical inventory financing. With us, you can experience a more growth-focused approach to retail inventory financing. Here are the advantages of partnering with us: 

  • No immediate repayments – Do not pay until your product sells. Other providers may debit your account daily as part of a repayment schedule, and loans require repayment before your sales cycle has even begun. With Kickfurther, you set your repayment schedule based on what works best for your cash flow.
  • Non-dilutive – We do not require equity in your retail business to access inventory funding.
  • Not a debt – This is not a loan, so it does not put debt on your books, which can sometimes further constrain your working capital/access to capital and lower VC valuation.
  • Immediate access to capital – When your payments are due, you need ready capital. Kickfurther can fund your entire order(s) each time you need more inventory.

 

Kickfurther puts you in control of your business while delivering the costliest asset for most brands. By funding your largest expense (inventory), we help you free up existing capital to grow your retail business wherever you need it—product development, advertising, adding headcount, and more.

Don’t let the usual constraints of traditional inventory financing hold you back. Secure the flexible funding you need with Kickfurther with these easy steps:  

  1. Create a free business account.
  2. Complete the online application. 
  3. Review a potential deal with one of our account reps to get funded in minutes.

For streamlined and responsive retail inventory financing that drives growth, join Kickfurther. Get started today and take your business to the next level!

Understanding Inventory Turnover Ratios: A Comprehensive Guide

Posted on by Amanda Levine

Without the right tools and knowledge, companies in the consumer packaged goods industry can easily end up with an inventory imbalance. Too little stock means missed sales opportunities, lost economies of scale, and dissatisfied customers. The opposite doesn’t look good, either. Too much triggers cash flow issues, increased holding costs, and stock depreciation. That’s why mastering inventory turnover ratios is critical. Let’s explore how this crucial metric can enhance your inventory management practices and drive your business forward.

What are inventory turnover ratios, and how are they calculated? 

The inventory turnover ratio shows how frequently a company sells and restocks its inventory over a given period, usually a year. Knowing this metric helps you understand your company’s sales and inventory management practices. 

To calculate your inventory turnover ratio, divide your cost of goods sold (COGS) by your average inventory for the same period. 

  • Cost of Goods Sold (COGS) – These are the direct costs of making your product, such as raw materials, packaging, labor, and freight charges. Indirect expenses, like sales, marketing, and administrative costs or interest payments, are not included.
  • Average Inventory – This is your typical inventory value over a specific period. The average inventory considers fluctuations, giving you a steadier baseline to work from.  

Average Inventory= (Beginning Inventory+Ending Inventory)/2

To demonstrate, let’s look at the variables of a supermarket.

Cost of Goods Sold (COGS) for the year: $2,400,000

Beginning Inventory at the start of the year: $300,000

Ending Inventory at the end of the year: $200,000

Inventory Turnover Ratio = COGS/Average Inventory

Inventory Turnover Ratio = $2,400,000 / (($300,000 + $200,000)/2) 

= $2,400,000 / $250,000 = 9.6


This means that the supermarket sold and restocked its inventory approximately 9.6 times over the year.

Limitations of Using Inventory Turnover Ratios for Analysis

While inventory turnover ratios are valuable, they do have a few constraints.   

  • They don’t fully represent your sales efficiency or profitability because they don’t consider your actual sales volume or profit. 
  • You can have different inventory turnover ratios depending on the accounting method you use (i.e., using FIFO, LIFO, or average cost to calculate the COGS). 
  • They overlook external factors, such as market demand, economic conditions, or seasonality, which can greatly impact inventory levels and turnover rates. 
  • They don’t distinguish between high-value or slow-moving items and those that are lower in value but turn over more quickly. This can mask problems in specific segments of your inventory.
  • They provide a snapshot of your business efficiency, not the dynamic story. Let’s say your business is growing or contracting significantly. In either case, your beginning and ending inventories won’t be representative of the entire period. 

 

Despite these restrictions, inventory turnover ratios can give you a crucial health check on your operations, helping you make strategic buying, pricing, and selling decisions. When combined with other data, this metric becomes a vital tool that keeps your cash flow strong and your business profitable. 

Interpreting Inventory Turnover Ratios

So, is a high inventory turnover ratio good? What does a low inventory turnover ratio mean?

A high inventory turnover ratio is usually positive because it indicates that your products are selling quickly. This is particularly important if your items have limited shelf lives or are trend-sensitive. With a fast turnover, you don’t have to worry if your perishable goods will expire or if you need to increase your budget for storage and insurance costs. It also reflects a strong market demand and effective supply chain management​​​​. Yet, it can also mean you’re understocked, which can be a problem.   

Conversely, a low inventory turnover ratio could signify overstocking, poor product selection, or ineffective marketing. These issues are critical because unsold items can quickly become unsellable due to expiration or inventory obsolescence, leading to considerable losses​​​​. But a low turnover ratio may not necessarily be a bad thing. It could be a deliberate result of stockpiling for high-demand periods or buffering against supply chain uncertainties. 

In either case, you must understand the context to interpret your inventory turnover ratio accurately. The ideal turnover ratio typically depends on your specific product category or industry. Products with shorter shelf lives, such as food and beverages, require higher turnover rates to avoid spoilage and waste. Alternatively, non-perishable goods might tolerate slightly lower turnover rates but still demand efficiency to stay relevant to consumer trends and preferences. 

Strategies to Optimize Inventory Turnover 

Maintain a healthy balance between sales and inventory levels with these tips:

1. Restock the smart way

Order in smaller quantities more frequently to avoid overstocking and keep your inventory fresh. This ensures optimal stock levels to consistently satisfy customer demand without locking up too much capital in unsold goods​​​​.

2. Become a preferred customer

When you have a good business relationship with your suppliers, they prioritize you. They’ll want to help you protect your inventory levels, especially when there are stockouts in your industry. Preferred customers are also likely to experience timely deliveries, shorter lead times, and even better terms.  

3. Apply a dynamic pricing strategy

Adjust prices according to market demand, competition, and seasonal trends to stimulate sales for slow-moving items or clear out old stock. This not only boosts sales but also helps maintain a healthy inventory turnover rate​​​​.

4. Leverage technology

Inventory management systems can deliver real-time insights into sales trends, stock levels, and reordering processes. With advanced forecasting methods and automation, you can reduce overstocking and always have your products available. 

5. Get the right financing

Keeping your inventory at the perfect level is tough. No matter how hard you try, predicting every twist and turn in business is a big ask. Overstocking or waiting on unpaid invoices can really pinch your cash flow, blocking you from scaling or growing your business. You need innovative financing that will not restrict you with limited funds, steep interest rates, or inflexible paying options. Enter Kickfurther. 

Why Kickfurther?

With Kickfurther, eliminate stockouts, keep up with demand, and move into growth mode. Here’s what we offer: 

  • No immediate repayments: You don’t pay back until your new inventory order begins selling. You set your repayment schedule based on what works best for your cash flow.
  • Non-dilutive: Kickfurther doesn’t take equity in exchange for funding.
  • Not a debt: Debt financing options can sometimes further constrain your working capital and access to capital—even lower your business’ valuation if you are looking at venture capital or a sale. Kickfurther is not a loan, so it does not put debt on your books. 
  • Quick access: Get the capital you need when your supplier payments are due. Kickfurther can fund your entire order(s) each time you need more inventory.

Kickfurther puts you in control of your business while delivering the costliest asset for most brands. By funding your largest expense (inventory), you can free up existing capital to grow your business wherever you need it—product development, advertising, and expanding your team.

Interested to know how you can secure inventory funding from Kickfurther? Just follow these easy steps: 

  1. Create your free business account.
  2. Complete the online application.
  3. Review a potential deal with one of our account reps to get funded in minutes.

See how much funding your brand can access, and discover how Kickfurther can accelerate your momentum today!

CPGrow 2024 Recap: A Showcase of Innovation and Opportunity

Posted on by Amanda Levine

On March 20, 2024, five growing CPG brands took the virtual stage at the CPGrow 2024 pitch competition. Hosted by Sean De Clercq, Kickfurther’s CEO and Founder, this event wasn’t just a competition; it was a celebration of creativity, determination, and the entrepreneurial spirit that drives the consumer packaged goods industry forward. 

Each brand was given the opportunity to pitch their innovative product and story, followed by a five-minute Q&A session with our panel of judges including Natalie Holloway, BALA, Sumeet Shah, VHS Ventures, and Kelly Wojcik, REI Path Ahead Ventures.

The reward? A staggering $150,000 in no-cost inventory funding along with other grand prizes from our partners that could help transform the trajectory of any scaling CPG brand. 

We had over 400 applications and these 6 made it to our live event and got to share their founder story with our amazing judges and audience.

Meet the Finalists

CPGrow featured five scaling brands each with a unique vision and pitch. 

The evaluation process was rigorous, but each of these brands had a unique story to share with a strong plan to continue to scale. After receiving over 400 applications, we embarked on an evaluation process to find the brands that provided a compelling story to move them to the semi-finalist round. From there, we reviewed their captivating 60-second pitch, which highlighted their growth plans and why they should be selected as a finalist. We also assessed their financial strength and growth potential. All of these factors painted a clear picture of why these brands stood out and how they would continue to make an impact and succeed in the future.

Watch the recap here.

Caskata

Shawn Laughlin, Founder & Creative Director

Founded on the principles of timeless design and meticulous craftsmanship, Caskata offers a range of beautifully curated pieces that blend classic elegance with modern whimsy. Each item is a testament to the brand’s commitment to quality and distinctive style, featuring intricate, handcrafted patterns inspired by nature and heritage motifs. Whether setting a table for a special occasion or enhancing the everyday, Caskata transforms simple moments into memorable experiences with its exquisite and durable products. 

ELAVI

Michelle Razavi, Founder & CEO

Known for their plant-based protein bars and rejuvenating health drinks, Elavi’s products are perfect for fitness enthusiasts and anyone looking to elevate their dietary habits. Made with clean, simple ingredients and a promise of no artificial additives, Elavi is dedicated to purity and performance. 

Just Date

Sylvia Charles, M.D., Founder & Chief Innovation Officer

Rooted in the belief that natural ingredients lead to better health, Just Date offers a delicious alternative to refined sugars. Their signature date syrup and sugar products are crafted from high-quality, sustainably sourced dates, providing not only exceptional taste but also nutritional benefits like fiber, antioxidants, and minerals. Ideal for health-conscious consumers who refuse to compromise on flavor, Just Date makes it easy to sweeten anything from your morning coffee to gourmet desserts naturally. Embrace a healthier way to indulge with Just Date’s pure, plant-based sweetness.

Nads Organic Underwear

Daniel Baird, Cofounder & CEO

Founded with the vision of providing environmentally conscious consumers with a guilt-free option for everyday essentials, Nads offers a line of premium, organic underwear that doesn’t just feel good on the skin—it’s good for the planet too. Made from ethically sourced organic cotton, each piece is designed to deliver unparalleled softness, breathability, and durability. Nads Organic Underwear champions the cause of eco-friendly fashion by crafting products that are both biodegradable and stylish, proving that you can make responsible choices without sacrificing quality or comfort. 

Seed Ranch Flavor Co

David Delcourt, Chief of Flavor and Co-founder

Seed Ranch Flavor Co. prides itself on creating sophisticated, handcrafted sauces and seasonings that elevate home cooking to gourmet standards. Each product is carefully formulated without artificial additives, relying instead on fresh, organic ingredients and unique spice blends that cater to discerning palates. From smoky hot sauces to aromatic truffle seasonings, Seed Ranch Flavor Co. ensures every dish is not only flavorful but also wholesome.

Our Rising Brand Winner: Quitch

Ilyssa Norda, CEO

Quitch is dedicated to bringing comfort and ease to those suffering from the itchiness and discomfort caused by insect bites. Using a unique blend of natural ingredients, Quitch’s topical treatments are designed to soothe the skin quickly without the use of harsh chemicals. Perfect for adventurers, outdoor enthusiasts, and families alike, Quitch products are easy to apply and essential for any outdoor activity. Say goodbye to the annoyance of bug bites and hello to uninterrupted outdoor enjoyment with Quitch, where nature meets innovation for your comfort.

The Pitch Highlights

From whimsical tableware to groundbreaking food and beverage innovations, each brand brought something unique to the table. Each brand was able to share their story, vision and product with our judges and audience, followed by five minutes of Q&A.

Watch the recap here. 

The Winning Pitch: Just Date

Amid tough competition, “Just Date” emerged as the standout brand, captivating the judges and audience alike. Their pitch wasn’t just good—it was a compelling story of how sustainable sourcing and innovative sweeteners can revolutionize the way we think about diet and health.

 

Learn more about Just Date.

Just Date took home $150,000 in no-cost inventory funding from Kickfurther along with prizes from our amazing partners including:

AVL Growth Partners

60-minute executive consultation with a CPG CFO, a 20% discount on roadmap defining Business Evaluation, and an additional 10% off all professional services moving forward

(Up to $12,000 value)

Forecastr

50% off first-year and waived implementation fee, plus a financial model review and consultation.

($3,000 value)

Hawke Media

Comprehensive marketing audit that entails an exhaustive assessment of your acquisition tactics across Amazon, social platforms, and search engines. Plus a deep dive into email and SEO strategies.

($5,750 value)

RangeMe

Premium Membership

($1,399 value)

ShipBob

Free fulfillment onboarding

($1,500 value)

Kickfurther: Empowering Brands to Grow Forward

We’re incredibly grateful to our community for their support during our first CPGrow event. Kickfurther was built by founders, for founders to empower the growth of CPG brands. By offering funding for up to 100% of your inventory costs on flexible payment terms that you customize and control, we hope to provide CPG brands with the capital they need to grow on their terms. 

Thank you to our Partners

We want to extend our gratitude to our incredible partners who played a pivotal role in bringing CPGrow Live to life! Thank you to AVL Growth Partners, eComEngine, Forecastr, Hawke Media, Power to Pitch, RangeMe, and ShipBob. 

As we wrap up CPGrow 2024, the excitement doesn’t end here. The conversation about innovation continues, and the journey for our participants and their growing brands is just beginning. 

Don’t miss out on your chance to be part of this community. Whether you’re a budding entrepreneur or an established brand looking to break new ground, CPGrow is the platform to showcase your innovation and drive. Stay tuned for next year’s competition—where your brand could be the next big winner!

Inventory Financing: What Is It and How Does It Work for Startups?

Posted on by Amanda Levine

Ramping up for a big launch, preparing for seasonal surges, or expanding product lines—all these hinge on one critical factor: funding. Without enough capital, even the most promising businesses can sputter and stall. But what do you do if you’re caught in the catch-22 of needing more stock to generate sales but also requiring sales to afford more stock? 

Cue inventory financing, a strategic tool startups can leverage to maintain momentum and take advantage of growth opportunities. So, what exactly is it, and how does it work to fortify your startup’s resilience? Find out in this comprehensive read. 

What is inventory financing? 

Inventory financing is a specialized alternative financial option to help you access funds using unsold inventory as collateral. If you’re rich in product but short on cash, then inventory financing for startups is for you. Here, the fund amount is a percentage of the value of your existing inventory, whether it’s raw materials or finished goods.

By using what you already have to sustain and grow, you can bridge short-term cash flow gaps without dipping into reserves or waiting for sales. This way, you can supplement your working capital, boost your liquidity, capitalize on market prospects, or scale operations effectively. 

2 Types of inventory financing

Gain an understanding of inventory financing for startups by unpacking these two main categories: 

  1. Inventory loan: In inventory loans, lenders will offer you a loan based on the value of your inventory. You then settle this loan in set monthly payments over a fixed term, usually tied to the lifespan or turnover rate of the inventory, or in a lump sum after its sale. Typically, an inventory loan is a one-off loan, which requires a new application every time you need additional funding
  2. Inventory line of credit: This flexible form of inventory financing gives you a fixed amount of credit that you draw upon as needed, but you pay interest only on the amount you’ve used. This will particularly suit you if your business has fluctuating inventory needs because you can access the funding repeatedly as long as you pay back the borrowed amount.

How to secure inventory financing for startups 

Here are the critical steps to keep in mind when applying for inventory financing:

1. Determine your funding needs  

Before seeking financing, know precisely how much inventory you need, if you intend to use the funds to stock up. Thoroughly assess your startup’s inventory requirements by considering sales volume patterns, seasonality, and other economic factors affecting customer demand. Remember that overestimating can lead to excessive borrowing and unsold inventory while underestimating might leave your business short on sellable stock. 

2. Meet basic requirements

Ensure your business satisfies these criteria before applying​​:

  • Your startup should have been operational for at least a year, so you’ll have a more comprehensive sales history for lenders to review. 
  • Prepare a detailed sales history demonstrating profitability and the capacity to repay.
  • Showcase your startup’s ability to monitor and safeguard merchandise well by presenting a well-organized inventory management system. It should be able to provide timely reports on product shipping, returns, and sales.

3. Select the right inventory funding partner

Take the time to compare different financing entities to ascertain their unique benefits and drawbacks. Consider how quickly you need the funds, the amount of financing you require, and whether the lender specializes in your industry. 

4. Gather financial records

Inventory financing may not be as stringent as traditional forms of funding. However, some lenders may still require certain financial documents to properly evaluate whether you can repay the loan. These include the following standard documents:

  • KYC (Know Your Customer) process you use to verify your clients’ identities
  • Certificate of business registration 
  • Proof of company address 
  • Profit and loss statements and balance sheets
  • Sales forecast
  • Business bank statements
  • Inventory lists
  • Management records
  • Tax returns

5. Process your application 

Once your requirements are ready, complete an application online or visit a lender’s physical branch. The application form typically requires basic information about you and your business, including the loan amount you’re seeking. 

6. Get ready for an audit

After you’ve submitted the application and your financial documents, the lender will thoroughly evaluate your creditworthiness and eligibility for inventory financing. If you pass the initial review, they’ll usually conduct a field audit of your office space, facility, or warehouse. This will help them assess your existing inventory and operations.

7. Review and consider the loan offer

Following the audit of your financials, the lender might present you with a preliminary loan offer. Carefully review the terms and conditions of the loan to ensure it matches your startup’s financial needs and objectives.

Further essential considerations for startups

Take the following into account when pursuing inventory financing: 

Interest rates and terms

The rates and terms will depend on the lender, the liquidation value of the inventory, the borrower’s creditworthiness, and the overall financial health of your business.

Generally, inventory financing has higher interest rates than traditional funding due to the lender’s increased risk. It’s usual for inventory financing rates to be between 13% to 19% or even exceed 20%.

Loan amounts

Due to the associated risks and potential depreciation, lenders usually provide loan amounts worth 50% to 80% of the inventory’s liquidation value. This might be less than its initial purchase price​. In addition, some lenders impose significant minimum loan requirements (the smallest amount a lender is willing to lend) due to the steep setup costs.

Other costs

Be aware of these various expenses beyond just the loan interest: 

  • Loan application fees
  • Inventory appraisal fees 
  • Early repayment
  • Late fees
  • Origination fees (for processing a new loan application)
  • Costs related to inventory risk, such as shrinkage (loss of stock), inventory theft, administrative errors like lost goods or misplaced shipments, and product value depletion for items stored too long​​
  • Storage costs for renting warehouse space, utilities, and material handling ​

Navigating the complexities of inventory financing can be daunting. But what if we told you it’s possible to enjoy the benefits of this financial solution and still keep things simple? This is where Kickfurther can help. 

Why Kickfurther?

Kickfurther isn’t your typical inventory financing—it’s an innovative solution that takes things up a notch and works on consignment. With us, you can experience a more growth-focused approach to inventory financing for startups. Here are the advantages of partnering with us: 

  • No immediate repayments – Do not pay until your product sells. Other providers may debit your account daily as part of a repayment schedule, and loans require repayment before your sales cycle has even begun. With Kickfurther, you set your repayment schedule based on what works best for your cash flow.
  • Non-dilutive – We do not require equity in your business to access inventory funding.
  • Not a debt – This is not a loan, so it does not put debt on your books, which can sometimes further constrain your working capital/access to capital and lower VC valuation.
  • Immediate access to capital – You need capital when your supplier payments are due. Kickfurther can fund your entire order(s) each time you need more inventory.

Kickfurther puts you in control of your business while delivering the costliest asset for most brands. By funding your largest expense (inventory), we help you free up existing capital to grow your business wherever you need it—product development, advertising, adding headcount, and more.

Don’t let the usual constraints of traditional inventory financing hold you back. Secure the flexible funding you need with Kickfurther with these easy steps:  

  1. Create a free business account.
  2. Complete the online application. 
  3. Review a potential deal with one of our account reps to get funded in minutes.

For streamlined and responsive inventory financing that fuels growth, join Kickfurther. Get started today and take your business to the next level!

Benefits of Being a Woman-Owned Business

Posted on by Amanda Levine

To say it’s been a challenging few years for women-owned businesses, and small businesses in general,  is an understatement. The impact of Covid-19 on female business owners caused and left lasting impacts. With the number of women-owned small businesses decreasing by 25% in the early stages of the pandemic, impacts are still being felt. 

Today, 42% of all U.S. businesses are owned by women (13 million), employing over 9.4 million workers. With an estimated 849 new women-owned businesses opening every day, women are fighting to earn their share of the market back and survive the pandemic.. To help product businesses scale, inventory funding is available – and it doesn’t have to cost so much that profitability takes a huge hit. Read on to learn more about the benefits of being a woman-owned business and resources available.

What are the pros and cons of owning a business as a woman?

Business owners, regardless of gender, face pros and cons. Women in particular though, may face a targeted set of pros and cons. Let’s take a look.

PROS

  • You are the boss. Being your own boss means ultimate flexibility and control.
  • Ability to meet family demands and needs personally and financially.
  • Full control over your present and future career. As a business owner, you lay the roadmap and invest time where it’s most suitable. 
  • Strong Emotional Intelligence. Studies have proven that female business owners demonstrate a high Emotional Intelligence score. This means you have the ability to better understand your own emotions and guide others.
  • Support is all around. From family members to friends to networks specifically geared towards female entrepreneurs, there are many support systems to help you succeed. 

CONS

  • A lot of responsibility is associated with being your own boss which can be burdensome. Remember, as a business owner, there’s no paid time off per say. Before starting a venture you should be confident and comfortable with managing time, making decisions, exploring new things, and getting help when needed.
  • Personal and family needs may suffer. It’s important to draw boundaries as a business owner. Your family and personal needs should remain a priority – even though you’ve put your blood, sweat, and tears into your business. 
  • Risks may increase as a paycheck every so  often depends completely on your efforts. 
  • Self motivation can be a struggle, but is necessary for success.

Top benefits for women based business owners

Minority businesses are recognized, and while women are not typically considered as a minority, they are considered by some as a disadvantaged group. In pursuit of supporting more women–owned businesses, consumers often search for or favor them. Getting certified as a women-owned business can help you take advantage of more benefits such as the following.

  1. Gain a competitive advantage. Government entities and other companies often seek women-owned businesses to work with. Registering as a women-owned business can increase your visibility, thus giving you an advantage. At least 5% of all federal contracting dollars are invested in women-owned small businesses. Plus, private companies can get tax breaks for working with women-owned businesses.
  2. Increased access to educational and networking opportunities. Mentorship opportunities are available for women-owned businesses with a WOSB or WBE certification. Other opportunities can include invites to annual summits, webinars, networking functions, and so forth.
  3. Lead generation. Leads are important, as is word-of-mouth. While creating a reliable reputation for your business is critical, certifying your business can allow you to submit bids for government contracts, thus increasing your business potential and earning. Businesses that obtain WBE certification can also access a database of Fortune 500 companies that may be interested in supplier diversity.

How to get certified as a woman based business owner

You may want to certify your woman-owned business to get more access to private and government contracts. There are three types of certificates you can obtain, including:

#1. Women-Owned Small Business (WOSB) program

 To be eligible for the WOSB program, a business must:

  • Must qualify as a small business under the definition set by the SBA size standards
  • Minimum ownership requirement of 51% female who are U.S. citizens
  • Women must manage day-to-day operations and be involved with long-term decisions

#2. Economically Disadvantaged Women-Owned Small Business (EDWOSB)

To be eligible for the EDWOSB program, a business must:

  • Meet requirements (see WOSB program requirements for details)
  • Minimum of one woman owners with a personal net worth of $75,000 or less. If there is more than one female owner, all must meet requirements.
  • Minimum of one woman owner with $350,000 or less in adjusted gross income based on previous three years. If there is more than one female owner, all must meet requirements. 
  • Minimum of one woman owner with $6 million or less in personal assets. If there is more than one female owner, all must meet requirements.

#3. Women’s Business Enterprise (WBE)

 To be eligible for a WBE certification, a business must:

  • Must be a for-profit organization located in the U.S.
  • Ownership must be 51% female, or a group of women, but for an inheritance,  contributed a proportionate amount of capital to gain ownership
  • If there’s a governing board, it must be controlled by one or more women
  • Top executive officer must be a woman and must have technical expertise in the firm’s primary business function
  • All female business owners must be legal residents or U.S. citizens

To apply for the WOSB or EDWOSB certifications, it’s free. You can apply directly through the U.S. Small Business Administration’s (SBA) website. You will need the following:

  • Active registration in the System for Award Management.
  • Birth certificates, naturalization papers or unexpired passports for each female business owner.
  • Articles of organization/incorporation, partnership or joint venture agreements, voting agreements, and any amendments to specified documents.
  • Issued stock certificates  and stock ledger.
  • Assumed/fictitious name certificate.
  • For EDWOSB, your three most recent personal tax returns will be required. Include W-2s and all schedules for each woman business owner and her spouse.
  • For EDWOSB you will need an IRS Form 4506-T, Request for Tax Transcript for each woman business owner and her spouse.

To apply for WBE certification, the application fee and re-certification fees are the same based on the company’s revenues ranging from $350 to $1,250 (certificates last for one year). There is also a scholarship fund for first-time applicants with under $500,000 in revenue. You will need the following:

  • Commercial tax returns for 3 previous years
  • Financial statements corresponding to tax returns listed above
  • Debt instruments
  • Commercial bank signature authorization card and corporate banking resolution
  • Proof of capital and/or equity investment by female owners
  • Employee list
  • Most recent employee payroll
  • W-2’s and/or 1099 forms from every owner, officer, or director
  • Written business history
  • Professional or local business licenses if applicable
  • Resumes of all owners, directors, and key personnel
  • Proof of gender
  • Proof of Citizenship or legal residency
  • And more… 

Do grants for women owned businesses exist?

Yes! There are several grants available to women-owned businesses. Below are some examples:

  1. Launch program  
  2. Visa’s She’s Next program 
  3. Amber Grants
  4. SBIR & STTR programs
  5. Ms. Foundation for Women  
  6. Cartier Women’s Initiative Award 
  7. GrantsforWomen.org

Are there tax benefits to being a woman-owned business?

Yes. If you’re looking to hire employees, tax credits are available. The Work Opportunity Tax Credit allows a credit against your business income tax up to 50% of wages when hiring from populations such as former state or federal assistance recipients, ex-offenders, or veterans. Maximum wages will vary depending on the targeted group, with a range of $6,000 – $24,000 per annum.

Also, if you are a minority business in a low-income area, you can qualify for the New Market Tax Credit (NMTC).

Tips to qualify as a woman based owned business

Our best tip is to make sure you at least meet the basic requirements, which include the following:

  1. Must be at least 51% owned and controlled by women who are U.S. citizens
  2. Have women manage day-to-day operations who also make long-term decisions

Other resources for women entrepreneurs

If you’re looking for good guidance, consider reaching out to a mentor. Some places that you can find a female mentor include:

  • Ladies Get Paid
  • 27 Angels
  • BOSS
  • Women Who Startup
  • Female Founders Association
  • Lean In Network
  • Awesome Women Entrepreneurs

If you’re looking for funding, you may be surprised – or not – that only 16% of small business loans go to women entrepreneurs. Places to look for funding include:

  • The SBA’s Office of Women’s Business Ownership
  • Entrepreneurial Winning Women
  • Female Founders Fund
  •  SoGal Ventures
  • The Tory Burch Foundation
  • Women’s Venture Fund
  • Women Who Startup
  • Kickfurther

How Kickfurther can help

Kickfurther funds up to 100% of your inventory costs on flexible payment terms that you customize and control. With Kickfurther, you can fund your entire order(s) each time you need more inventory and put your existing capital to work growing your business without adding debt or giving up equity.

Why Kickfurther? 

No immediate repayments: You don’t pay back until your new inventory order begins selling. You set your repayment schedule based on what works best for your cash flow. 

Non-dilutive: Kickfurther doesn’t take equity in exchange for funding.

Not a debt: Kickfurther is not a loan, so it does not put debt on your books. Debt financing options can sometimes further constrain your working capital and access to capital, or even lower your business’s valuation if you are looking at venture capital or a sale.

Quick access: You need capital when your supplier payments are due. Kickfurther can fund your entire order(s) each time you need more inventory.

Kickfurther puts you in control of your business while delivering the costliest asset for most CPG brands. And by funding your largest expense (inventory), you can free up existing capital to grow your business wherever you need it – product development, advertising, adding headcount, etc.

Closing thoughts

Overall, you can see that there are many benefits to being a women-owned business. Not only are there unique funding opportunities for female entrepreneurs, but there are also large support networks and plenty of fans. But, being an entrepreneur is not easy, in fact 70% of new businesses fail to keep their doors open more than five years. However, now that you know about the many creative funding opportunities like grants and Kickfurther, you will give yourself a leg up on the competition and increase your chances of being the 30% that make it over the long-term. Knowledge is power; and you now have more power than ever to make your dreams turn into reality!

Interested in getting funded at Kickfurther? Here are 3 easy steps to get started:

#1. Create a free business account

#2. Complete the online application 

#3. Review a potential deal with one of our account reps & get funded in minutes

Learn more about inventory financing options for women entrepreneurs from Kickfurther.

How to Build a Pinterest Marketing Strategy

Posted on by Amanda Levine

Pinterest marketing is a social media marketing strategy that involves using the Pinterest platform to promote your business or brand. Pinterest is a visual discovery platform that allows users to discover and save ideas, images, and videos on virtual boards. With over 400 million monthly active users, Pinterest offers businesses a powerful tool to reach and engage with potential customers. The platform is particularly effective for businesses that have visually appealing products, such as fashion, food, home decor, and beauty items. Successfully marketing on Pinterest can significantly increase demand for a company’s products and cause business owners to seek inventory financing. This is where Kickfurther can help. 

Inventory is often a businesses largest expense and for most businesses, it presents a major cash flow dilemma. Kickfurther funds up to 100% of your inventory costs on flexible payment terms that you customize and control. With Kickfurther, you can fund your entire order(s) each time you need more inventory and put your existing capital to work growing your business without adding debt or giving up equity. By combining Pinterest marketing with funding from Kickfurther, your businesses can not only increase their visibility and drive traffic to your website, but also secure the funds your business needs to grow inventory and expand operations. 

Interested in marketing your products on Pinterest? Here’s what you should know. 

What is Pinterest marketing?

Pinterest marketing is a form of social media marketing that involves using the Pinterest platform to promote a brand, product, or service. With Pinterest marketing, businesses and individuals create a presence on the platform, and then use the platform’s features to connect with their target audience, build brand awareness, and drive traffic to their website. This can involve creating visually appealing pins, boards, and accounts that showcase a brand’s products, services, or values. Some common tactics in Pinterest marketing include optimizing pins for search, engaging with followers, collaborating with other users or brands, and using paid advertising options like Promoted Pins. Additionally, businesses can use Pinterest analytics to track engagement metrics and improve their strategies over time.

Benefits of using Pinterest for marketing

Pinterest is a powerful marketing tool that can help businesses increase online visibility, connect with potential customers, and ultimately drive traffic and sales. There are several benefits to using Pinterest for marketing, including: 

  • Increased visibility: Pinterest is a highly visual platform, and its search feature makes it easy for users to discover new content. By optimizing your pins for search and using relevant keywords, you can increase your visibility and reach a wider audience.
  • Targeted audience: Pinterest users tend to be highly engaged and actively searching for inspiration and ideas. By creating content that resonates with your target audience, you can connect with potential customers and build brand awareness.
  • Drive traffic: Pinterest is a great platform to drive traffic to your website. By including links in your pins, you can direct users to your website and increase your chances of generating leads and sales.
  • Brand awareness: By creating visually appealing pins and boards that showcase your brand, you can increase your brand awareness and build a loyal following.
  • Collaborations: Pinterest allows businesses to collaborate with other users or brands. By collaborating with other businesses or influencers, you can reach a wider audience and increase your credibility.
  • Analytics: Pinterest provides businesses with a range of analytics tools that can help you track engagement metrics and refine your strategy over time.

Most important Pinterest Objectives

By setting clear objectives and tracking metrics, businesses can use Pinterest to achieve their marketing goals and ultimately grow their business. The most important objectives for a business using Pinterest marketing may vary depending on the specific goals of your  business, but some common objectives include:

  • Impressions: Impressions refer to the number of times a pin is displayed to a user. Increasing impressions can help businesses increase their brand awareness and reach new potential customers.
  • Clicks: Clicks refer to the number of times users click through to a website from a pin. By optimizing pins to drive clicks, businesses can increase traffic to their website and potentially generate leads and sales.
  • Links: Link clicks specifically refer to the number of times users click through to a website from a pin that contains a link. By driving link clicks, businesses can increase the chances of generating leads and sales.
  • Closeup views: Closeup views refer to the number of times users click on a pin to see it in more detail. By generating closeup views, businesses can increase the chances of users engaging with the pin and potentially clicking through to their website.
  • Saves: Saves refer to the number of times users save a pin to one of their boards. By increasing saves, businesses can increase their brand visibility and potentially drive more traffic to their website.
  • Encourage user engagement: User engagement refers to actions taken by users, such as commenting, liking, or sharing pins. By encouraging user engagement, businesses can build a community on the platform and increase their brand loyalty.

Tips for a successful Pinterest marketing strategy

Pinterest can be a powerful tool for your business  to reach and engage with your target audience. Here are some key steps to successfully use Pinterest as a marketing strategy:

  • Educate consumers: Use your Pinterest account to educate your audience about your products or services. Create content that showcases how your products or services can be used and how they can benefit the consumer. This can help build trust and credibility with your audience.
  • Drive traffic to your website: Use Pinterest to drive traffic to your website by including a link to your website in each pin. You can also create pins that showcase specific products or services and link to a landing page where consumers can learn more or make a purchase.
  • Utilize keyword-rich descriptions: Use relevant keywords in your pin descriptions to optimize them for search. This can help your pins appear in relevant search results and increase your visibility on the platform.
  • Use high-quality images: Use high-quality images that are visually appealing and on-brand. This can help your pins stand out and increase engagement with your content.
  • Collaborate with other brands and influencers: Consider collaborating with other brands or influencers on the platform to expand your reach and attract new followers. You can collaborate on content creation or cross-promote each other’s content.
  • Create engaging content: Use your Pinterest account to create engaging content that resonates with your audience. This can include DIY tutorials, inspirational quotes, or lifestyle content that aligns with your brand values.

Incorporating these tips into your Pinterest marketing strategy,  can create a strong presence on the platform, attract new followers, and drive traffic to your website. 

How to measure success of Pinterest marketing efforts

Measuring the success of your Pinterest marketing efforts is essential to refining your strategy and achieving your marketing goals. To measure marketing efforts, you can use Pinterest Analytics, which provides businesses with a range of data and insights about their account, audience, and content performance. By tracking key metrics such as impressions, clicks, close-up views, referral traffic and engagement rate, you can improve your effectiveness on the platform and utilize the exposure to increase product sales. 

How Kickfurther can help

Has your success with Pinterest marketing left you struggling to fund inventory to keep up with demand? Kickfurther is here to help. By helping with inventory funding, Kickfurther can help manage your largest expense (inventory) and put you in control of your business. As a direct result you can free up existing capital that you can utilize to grow your business while simultaneously stocking enough inventory to never miss out on a sale. 

Kickfurther funds up to 100% of your inventory costs on flexible payment terms that you control. Kickfurther’s unique funding platform can fund your entire order(s) each time you need more inventory, so you can put your capital on hand to work growing your business without adding debt or giving up equity.

Why Kickfurther? 

  • No immediate repayments: You don’t pay back until your product sells and you control your repayment schedule. 
  • Non-dilutive: Kickfurther doesn’t take your equity.
  • Not a debt: Kickfurther is not a loan, so it does not put debt on your books, which can sometimes further constrain your access to additional capital providers and diminish your valuation if you approach venture capital firms.
  • Quick access: You need capital when your supplier payments are due. Kickfurther can fund your entire order(s) each time you need more inventory.

Closing thoughts

Successfully marketing your business products on Pinterest can provide a unique set of challenges alongside tremendous opportunity. As your product gains exposure and demand increases, maintaining working capital can be difficult while attempting to fulfill a growing number of orders. By offering inventory on consignment, Kickfurther provides inventory funding that can free up the working capital necessary to keep growing and expanding your business. Founded by an entrepreneur, Kickfurther vouches to help entrepreneurs keep costs down when securing funding through our platform. Compared to other options, Kickfurther is up to 30% cheaper. Partnering with Kickfurther is proven to help businesses thrive and focus on doing what they love. 

Interested in getting funded at Kickfurther? Here are 3 easy steps to get started:

#1. Create a free business account

#2. Complete the online application 

#3. Review a potential deal with one of our account reps & get funded in minutes