How to calculate and boost your eCommerce profit margin

Posted on by Pavel

Understanding the financial health, including profit margins, of your eCommerce business is an essential precursor to making informed financial decisions. It’s easy to get consumed by a daily sales number or overwhelmed with expenses, but analyzing profit margins is one of the most accurate ways to get the financial “big picture.” Plus, when making business decisions you’ll want to consider their impact to the bottom line. One of those business decisions could include inventory financing, so that you can fast track growth, keep cash flow healthy, and keep pace with demand. 

Understanding what type of profit margin you need to measure

In order to understand which profit margins you need to be measuring, it’s helpful to have a clear idea of what they mean and why you’re analyzing them. Here’s an overview to get us started:

  • Gross profit margin: To determine your business’s gross profit margin, you subtract the cost of goods sold (COGS) from your total revenue. The COGS will include any costs relative to the production or purchasing of your product and may include material, labor, and production overhead. When to use and why it matters: Analyze your gross profit margin to determine how easily you can convert your inventory into cash. With a low gross profit margin, you may not have the cash to put back into other costs of running your business. You can also use it as a benchmark to understand where profits are getting consumed the most. Additionally, when making production (i.e. purchasing materials, upgrading equipment, etc.) decisions, you should consider the gross profit margin.
  • Operating profit margin: An operating profit margin represents how much revenue is left over after deducting expenses related to running your business such as rent, utilities, and salaries. When to use and why it matters: Looking at your operating profit margin will help determine if your revenue is enough to cover not only your cost of production but all expenses related to operating as well. Small businesses place a lot of weight on the operating profit margin, as they should. As you grow though, pay attention to where money is going to find ways to grow margins.
  • Net profit margin: A net profit margin determines how much profit your company is making after all expenses – including bulk and irregular expenses such as taxes, interest, and other costs not directly incurred by business operations. When to use and why it matters: For an accurate assessment of overall profitability use the net profit margin. This is useful in determining your company’s ability to effectively manage expenses. 

Calculating eCommerce Profit Margin

By understanding and assessing these profit margins, you have the power of making informed decisions in regards to the health of your eCommerce business. 

Let’s demonstrate how that looks with a fictional business’s revenue and costs by subtracting relevant expenses from the total revenue, then dividing by total revenue and multiplying by 100 to get each percentage. For the purpose of ease, these hypothetical numbers will be nice and round. 

Numbers used in example calculations below:

Revenue $50,000
Cost of goods sold (COGS) $15,000
Rent, utilities, payroll, etc. $10,000
Interest, taxes, etc. $2,000

 

#1. Gross Profit Margin = (Total Revenue – COGS) / Total Revenue x 100% 

Example: (50,000 – 15,000) / 50,000 x 100 = 70%

#2. Operating Profit Margin = (Total Revenue – COGS – operating costs) / Total Revenue x 100%

Example: (50,000 – 15,000 – 10,000)  / 50,000 x 100 = 50%

#3. Net Profit Margin = (Total Revenue – COGS – operating costs – additional costs) / Total Revenue x 100%

Example: (50,000 – 15,000 – 10,000 – 2,000) / 50,000 = 46%

Compare to industry benchmarks

By calculating your current profit margins, you can compare them to industry benchmarks to stay competitive and set goals for your business. For reference, NYU states that online retail averages gross margins of 41.54% and net margins of 7.26%. Understand the industry you operate within to set realistic goals. Plus, don’t underestimate the importance of efficient operations as they can impact profit margins more than you think.

Tips for boosting eCommerce profit margins

All of that may feel like information overload. What’s really important to know is how to boost your eCommerce profit margins. Larger profit margins are the key to success both online and in store. 

Here’s a few tips to boosting eCommerce profit margins:

Increase the price of your product (without decreasing sales)

The simplest solution, raise your prices. This may be nerve wracking for some industries as the fear of customers not returning due to price hikes is real. For businesses with in-demand products, this is less of a concern. Keep in mind that even if you lose a small percentage of customers, you still have a chance to make up that revenue and then some – even with just a small price increase.

Customer loyalty programs (a mutually beneficial approach)

A loyalty program is often a points system that builds up with each purchase and can be applied as value towards a future purchase – increasing your revenue, without cheapening your product. Showing your customers that you appreciate their business is a sure fire way to get them to return. Plus, it’s easier to track their behavior with their consent and access to data that allows you to understand customer base better. In the future you can use this information to tailor marketing.

Increase the average order value (cha-ching)

This can be done in a few ways. Some common methods are offering a minimum order amount incentive such as free shipping, product recommendations during your customers checkout experience, upsell complementary products on product listings, offering bundle deals, and running promotions. 

With increased sales, you’ll need to boost product inventory. Keep reading to find out how to support the growth. 

Use inventory funding to meet inventory demands

Inventory funding can be astronomically beneficial for your business as it allows for production of more products than on-hand cash would allow. Plus, it keeps cash flow healthy. This means that your capital can go where you need it so that your business can grow. 

Benefits of using inventory financing for eCommerce businesses

Besides increased cash flow, there are a number of benefits to using inventory financing for small businesses. These can include: 

  • Faster growth
  • A chance to expand product lines 
  • Take advantage of bulk discounts from your supplier

Inventory funding can be the difference between excitedly riding the wave of eCommerce success and being overwhelmed by it. 

How to apply for inventory financing

There are many sources to turn to when you need inventory financing. With our focus being on profit margins here, it’s appropriate to call out that inventory funding can cut into profit margins. So, how do you get affordable inventory funding? 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. 

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 and get funded in minutes.

Closing thoughts

Understanding your profit margins is crucial to the success of your eCommerce business. By calculating your profit margins, you can set goals for your business and move into growth mode. Inventory funding can be a game changer for eCommerce businesses, allowing for even faster growth. 

Why & How To Outsource Fulfillment For Your Brand

Posted on by Kaylyn Perry

As the owner of a growing eCommerce brand, you know just how important it is to ship orders promptly and efficiently. In fact, 42% of online shoppers now expect 2-day shipping as an option for every online purchase. The only trouble is that managing shipping processes in-house can quickly become time-consuming and expensive, especially when your company is growing.

If shipping issues go unchecked, they could seriously hinder your growth potential. This is where outsourcing to a third-party logistics (3PL) provider comes into play.

In this comprehensive blog post, we’ll explore the benefits of outsourcing your fulfillment. Then we’ll provide a step-by-step guide on how to find and work with a 3PL to streamline your operations and ultimately grow your brand.

7 Reasons To Outsource Fulfillment

Outsourcing fulfillment can be a game-changer for growing eCommerce brands. So much so that it’s practically a rite of passage once you’re shipping about 100 orders per month or so.

But why is this the case? In this section, we’ll discuss why brand owners such as yourself so often rely on 3PLs for fulfillment.

1. You can focus on growing your business.

Imagine this – instead of being bogged down by the complexities of shipping, warehousing, and order management, you can free up your time and energy to focus on your strengths. You don’t have to spend your valuable time packing boxes yourself. Instead, you can entrust your fulfillment to experts and rest easy knowing that your orders will be handled efficiently and accurately.

Freeing up your time alone can be reason enough to outsource. So, if you’re looking to take your eCommerce brand to the next level but find yourself fighting an eternal fight to squeeze more work hours into an already long day, outsourcing fulfillment may be the smartest move you can make.

2. It may reduce shipping costs.

One of the most significant benefits of outsourcing fulfillment is lower shipping costs. As an eCommerce brand owner, you are probably familiar with the high costs associated with shipping, especially if you are shipping products internationally. However, when you partner with a 3PL, you can take advantage of their bulk shipping discounts.

In short, 3PLs ship a TON of packages every day. This allows them to negotiate better rates with shipping carriers than you could on your own. These savings can be so steep that they can offset the cost of labor, storage, and other fees when you’re shipping enough orders per month. 

The savings 3PLs make on postage are passed on to you, resulting in reduced shipping costs for your business. By outsourcing fulfillment, you can improve your bottom line, boost profitability, and invest your cost savings in other areas of your business.

3. Fulfillment will be more timely and accurate.

One of the most significant advantages of outsourcing fulfillment is the ability to provide more accurate and timely delivery for your customers. This is because 3PLs have extensive experience and expertise in logistics and order management. They are equipped with state-of-the-art infrastructure and technology and are managed by highly qualified personnel. This allows 3PLs to manage complex fulfillment operations and ensure that orders are processed accurately and shipped promptly.

This results in faster delivery times and increased customer satisfaction, leading to positive reviews and repeat business. 

4. Customer satisfaction is likely to increase.

One of the primary goals of any eCommerce brand is to keep its customers happy. When it comes to order fulfillment, accuracy and speed are critical components in ensuring customer satisfaction. These days, customers’ expectations are largely formed by their experiences with Amazon, and they expect your brand to be able to keep up!

It is entirely possible to run a Shopify store from your home, even with hundreds of orders per month. But that requires constant trips to the post office or constantly scheduling pick-ups with carriers. Every order and every label must be applied correctly, or the shipment might be wrong or go to the wrong place. The more orders that have to go out, the higher the odds of making mistakes, no matter how diligent you are!

By outsourcing your fulfillment operations to a 3PL, you can improve your order accuracy and processing times, resulting in happier customers. When customers receive their orders promptly and accurately, they are more likely to have a positive experience with your brand and become repeat buyers. 

5. You will be more easily able to scale your business.

As your eCommerce business grows, so does the complexity of your fulfillment operations. To accommodate this growth, you may need to expand your office or warehouse space, hire additional staff, and invest in new technology.

On the other hand, if you outsource to a 3PL, you don’t have to worry about this. If your order volume doubles or triples overnight, your 3PL can probably handle it. This can provide you with the flexibility you need to adapt to changing market conditions and stay ahead of the competition. 

6. A great 3PL can help you streamline your entire supply chain.

Outsourcing your fulfillment to a 3PL can do more than just save you time and money; it can also help you streamline your entire supply chain. By working with a 3PL, you can gain access to their expertise and technology to optimize your logistics operations. 

Most 3PLs offer order fulfillment and returns. Many also provide freight and customs brokerage, meaning that a single company can coordinate everything between manufacturing and fulfillment.

This streamlining of processes helps reduce errors and free up your time, and you can do so without getting multiple different companies involved.

7. Most 3PLs are well-equipped to handle seasonal demand fluctuations.

One of the key benefits of outsourcing fulfillment to a 3PL is the flexibility it offers in managing seasonal demand fluctuations. As an eCommerce brand owner, you may experience spikes in demand during certain times of the year, such as the holiday season. These fluctuations can be challenging to manage, especially if you’re doing your own fulfillment in-house.

For 3PLs, on the other hand, good ones are well-equipped to handle increased order volume during the holidays without a hitch. If you have spikes in demand at any other time, since your orders will be fulfilled by the same company handling hundreds of others, your order spikes will make a relatively small impact on your 3PL. In other words, what could be unimaginably complicated for you to manage can often be handled without a single hiccup by a dedicated 3PL.

10 Steps To Outsource Fulfillment

Understanding the need for a 3PL is one thing. Finding the right one to work with and then giving them what they need to get started is another, and it can be pretty intimidating if you’ve never done it before!

In this section, we’ll cover the ten steps you need to cover to outsource fulfillment.

1. Figure out your specific business needs.

When it comes to shipping, 3PLs have more expertise and experience than any other kind of business. They have extensive knowledge of logistics, order management, and shipping operations, allowing them to optimize your supply chain and improve your processes. But that doesn’t mean every single 3PL will be the right fit.

Ideally, you will want to find a 3PL that serves your niche in particular. If you sell apparel, you will want to find a 3PL with extensive experience shipping apparel. Likewise, if you ship board games, you will want to find a 3PL specializing in that.

By finding a 3PL within your niche, not only can you find one that can ship orders in a timely manner, but you can also find one that knows the unique challenges of your industry. This means they will have processes to support your business and will likely provide value-added services, such as kitting, assembly, refurbishment, and others, that you may need.

2. Look for 3PLs.

When you’re looking for a 3PL, contact other business owners in your industry. You can conduct an online search, and that can yield great results, but always try your network first. It’s very common for large 3PLs to spend a lot on advertising, which can skew the results you see when you’re searching.

If you can’t find a 3PL by contacting people in your network, use more specific search terms such as “apparel fulfillment” or “cosmetics fulfillment” and see what comes up.

3. Evaluate 3PLs based on your business needs first.

Pricing, online reviews, and integrations are important. But there are a lot of 3PLs in the world. First, you will want to narrow down your options based on your business needs. Look for 3PLs that have at least some experience in your niche first.

Then consider their location, shipping options, technology integrations, and any value-added services they may offer. For example, if you need to offer two-day shipping to your customers, make sure the 3PL you choose can meet that requirement. Or, if you need to integrate your eCommerce platform with their order management system, ensure they have the necessary technology in place.

Requesting and comparing quotes is time-consuming, so going through this step will help you focus on spending time with 3PLs that are likely to be a good fit.

4. Request quotes.

Once you have identified potential 3PLs that meet your business needs, the next step is to request quotes. Contact each 3PL on your shortlist and ask for detailed pricing information, including any fees or additional costs that may apply. This can help you compare costs and find a provider that offers the services you need at a price point that fits your budget.

Once you have quotes from your 3PLs of choice, make a spreadsheet and do your best to compare them apples-to-apples. This is difficult because every 3PL has a slightly different pricing model. There is no good way around this process, but it’s an important step nonetheless.

The key here is to select a 3PL with reasonable rates but not necessarily the cheapest. You should also consider factors such as the 3PL’s experience, reputation, and customer service.

Your 3PL will ultimately become one of your closest business partners, so this isn’t something you’ll want to go cheap on. Think in terms of total cost of ownership. Paying slightly more in the short run can pay off, if it reduces returns and damages in the long run.

5. Evaluate 3PLs based on online reviews and case studies.

When evaluating potential 3PLs for your eCommerce brand, it’s important to research their reputation and track record. One way to do this is by reading online reviews from other businesses they have worked with. It’s also a good idea to seek out case studies of businesses like yours that the 3PL has worked with to see how they were able to help those companies succeed.

Key factors to look out for include good communication and timely delivery. Negative reviews regarding communication or timeliness are both huge red flags.

Try contacting some of the businesses mentioned in the case studies and see if the references check out. This can help you ensure that the reviews and case studies you’re reading are reliable.

6. Book a warehouse tour – in person or online.

If you’re considering outsourcing fulfillment for your eCommerce brand, scheduling a warehouse tour with your top choices is important. This can be done in person or online, depending on your preferences and the location of the 3PL. It’s a good sign when a 3PL is willing to share what is going on behind the scenes.

A warehouse tour can give you a firsthand look at the 3PL’s facilities, operations, and technology, allowing you to better assess their capabilities and suitability for your business. During the tour, you can ask questions, observe their operations, and meet with key personnel to better understand how they can help your business. 

7. Choose a 3PL.

After researching, requesting quotes, and scheduling warehouse tours, it’s time to choose a 3PL for your eCommerce brand. Consider all the information you have gathered, including pricing, services, reputation, and your experience during the warehouse tour.

Take the time to weigh the pros and cons of each potential provider and choose the one that offers the best overall value for your business.

8. Integrate your systems.

Once you’ve chosen a 3PL for your eCommerce brand, the next step is to integrate your systems with theirs. This involves connecting your eCommerce platform, order management system, and any other relevant software to the 3PL’s system. Doing so can ensure a seamless flow of data between your systems, enabling accurate order processing and tracking.

Your chosen 3PL should have a team of experts who can help you with the integration process and ensure that everything runs smoothly. 

9. Send in inventory.

Once you’ve integrated your systems with your chosen 3PL, it’s time to send in your inventory. Arrange for your products to be shipped to the 3PL’s warehouse, making sure to communicate any special handling or storage requirements to ensure that your products are correctly cared for. This can include things like temperature control, fragile item handling, or specific packaging requirements. 

If you have any concerns about how to do this, ask your 3PL if they provide freight brokerage services. Many 3PLs do, and this can make it easier to ship inventory in bulk.

10. Test, launch, monitor, and optimize.

Once you’ve sent in your inventory and integrated your systems with your chosen 3PL, test your order processing and tracking systems to ensure everything works correctly. After doing this, you can comfortably launch your fulfillment operations, knowing they are likelier to work smoothly.

For the first couple of weeks, you will want to monitor orders and ensure they are processed accurately and delivered on time. Then over the next few months, you’ll see what needs improvement.

Remember to communicate regularly with your 3PL to ensure they understand your business goals and are working to help you achieve them.

Final Thoughts

Outsourcing fulfillment to a 3PL can be tremendously beneficial for your growing eCommerce brand. With the right 3PL partner, you can reap numerous benefits, such as reduced shipping costs, improved efficiency, and the ability to focus on your core business activities.

Finding the right 3PL is a daunting task, to be sure. However, once you know why outsourcing makes sense, you can follow the ten steps in this guide to find the right 3PL and get off to a great start.

Don’t hesitate to explore your options. The right 3PL partner is out there, and once you start working with them, it will be well worth the time put into finding them!

Where to Source Products for Your Amazon Business

Posted on by Pavel

Searching endlessly for how to source products to sell on Amazon? 

Amazon product sourcing is an essential aspect of running a successful business on the platform. Finding the right products at the right price can be a challenging task, and inventory management can be a crucial factor in ensuring success. Fortunately, there are tools and resources available to help sellers navigate these challenges, such as Kickfurther. 

Kickfurther is a funding platform that allows brands to take control of their business. With a unique business model, E-commerce sellers sometimes struggle to obtain financing. Amazon inventory financing is available though, and at a cost that allows sellers to remain profitable. Our team of passionate entrepreneurs at Kickfurther is dedicated to helping small businesses maintain control of their businesses while growing. Success on Amazon is highly dependent upon having the right products to sell and at the right price. Plus, it’s important to always keep those products in stock so you don’t miss a sale. With access to working capital you can fund inventory, purchase inventory in bulk, and invest in hiring help, managing inventory, and other critical business functions. 

But before you dive into funding, let’s review how to source products to sell on Amazon. 

What is Amazon product sourcing?

Amazon product sourcing refers to the process of finding and selecting products to sell on Amazon. This includes identifying potential products, evaluating their profitability and market demand, negotiating with suppliers, and managing the logistics of getting the products to Amazon’s fulfillment centers.

The goal of product sourcing is to find products that are in high demand, have a good profit margin, and are not too competitive. This can involve researching trends, analyzing sales data, and staying up to date with changes in the market. There are various ways to source products for Amazon, including working with manufacturers or wholesalers, finding private label products, or sourcing products from overseas suppliers. Successful product sourcing is a crucial component of building a profitable Amazon business.

What are the different ways to source products for an Amazon business?

There are several ways to source products for an Amazon business. Some of the most common methods include the following. 

  • Retail Arbitrage: This involves finding products in retail stores that can be sold on Amazon for a higher price. If you love to shop for deals – this may be right up your alley.
  • Online Arbitrage: Similar to retail arbitrage, online arbitrage involves purchasing products from online retailers at a discounted price and then reselling them on Amazon. For retail and online arbitrage you can use applications that help determine a product’s online value and demand. 
  • Wholesale: Wholesale involves buying products in bulk directly from manufacturers or distributors at a discounted price. Purchasing in bulk can help you access products at a lower price. By utilizing inventory funding you can free up cash flow to afford more inventory.
  • Private Labeling: Private label sellers find manufacturers to produce their products and then sell them under their own brand name on Amazon.
  • Dropshipping: Dropshipping involves listing products for sale on Amazon without actually holding inventory. When an item sells, the seller purchases the product from a third-party supplier who ships it directly to the customer.
  • Overseas Sourcing: This involves finding products from overseas manufacturers or suppliers, typically in China, and importing them to sell on Amazon. 

Each sourcing method has its own advantages and challenges, and it is important to choose the one that fits your business goals, budget, and resources.

How to find profitable products to sell on Amazon

Finding profitable products to sell on Amazon can be a challenging task, but there are several strategies you can use to identify potential products. We encourage sellers to utilize resources that help identify selling opportunities on Amazon. In addition, here are some tricks to help you find profitable products to sell on Amazon. 

  • Research best-selling products
  • Look for products with low competition
  • Use keyword research
  • Check profit margins
  • Consider seasonal trends
  • Evaluate product quality
  • Software or applications that analyze products and opportunities 

It’s important to conduct thorough research and analysis before investing in any product to ensure that it aligns with your business goals and budget. Expect to go through successes and failures before finding the product mix that takes you to the top. 

Common challenges associated with sourcing for an Amazon business

Sourcing for an Amazon business can come with several challenges. Some of the most common challenges include the following. 

  • Finding profitable products: Identifying profitable products that have high demand, low competition, and good profit margins can be challenging, especially in a highly competitive marketplace like Amazon.
  • Ensuring product quality: Finding high-quality products that meet customer expectations and standards is crucial to maintaining a positive reputation and avoiding negative reviews and returns.
  • Managing inventory: Balancing inventory levels can be tricky, as overstocking or understocking can impact sales and profitability. 
  • Managing supplier relationships: Maintaining good relationships with suppliers is critical for obtaining quality products and timely delivery. However, communication and negotiation can be challenging, particularly when dealing with overseas suppliers.
  • Keeping up with market trends: The e-commerce market is constantly evolving, and it can be challenging to keep up with the latest trends and changes in consumer behavior. 
  • Adapting to Amazon’s policies: Amazon’s policies and guidelines can change frequently, and it can be challenging to stay updated and compliant with these policies, particularly for new sellers.
  • Managing cash flow: Sourcing for products and managing inventory can require a significant upfront investment, which can impact cash flow. 

Navigating these challenges can be challenging, but with careful planning, research, and execution, sellers can build a profitable and sustainable Amazon business. Keep going, you’ve got this. 

Tips for choosing a supplier for your Amazon business

Choosing the right supplier is a critical decision for any Amazon business. You’ll want to work with reliable suppliers that prioritize quality. Here are some tips to help you choose the right supplier.

  • Evaluate their product quality
  • Assess their reliability
  • Check their pricing
  • Review their past performance
  • Look for transparency
  • Ensure they are compliant
  • Check their capacity
  • Consider their location

By following these tips, you can choose a reliable and trustworthy supplier that can help you grow your Amazon business.

Best practices for managing your inventory and ensuring you have enough inventory to meet demand

Effective inventory management is crucial for any Amazon business. To manage inventory effectively, you should consider forecasting demand using historical sales data and trends. You should also set minimum stock levels to avoid stockouts and overstocking, and optimize lead times with suppliers to ensure timely delivery. Sellers should regularly monitor their inventory levels and adjust their ordering strategy accordingly. Additionally, you can use Amazon’s inventory management tools and services, such as the Inventory Performance Index (IPI) and Fulfilled by Amazon (FBA), to streamline your inventory management processes. 

By implementing these best practices, sellers can ensure that they have enough inventory to meet demand, avoid stockouts, and maintain customer satisfaction. 

Legal considerations to be aware of

When selling on Amazon, there are several legal considerations that sellers should be aware of. By being aware of these legal considerations and complying with relevant laws and regulations, sellers can operate their Amazon businesses successfully and avoid legal issues. It’s important to consult with legal and tax professionals to ensure compliance with all applicable laws and regulations. Here are some of the most important ones to keep in mind.

  • Intellectual property rights
  • Product liability
  • Sales tax
  • Data privacy
  • Advertising regulations
  • Import/export regulations
  • Counterfeit products

Best strategies to scale your Amazon business with product sourcing

Here are some strategies that can help scale your Amazon business through effective product sourcing.

  • Expand your product catalog: Continuously expand your product catalog by sourcing new and trending products that complement your existing offerings. This will help you increase your customer base and revenue streams. It can also help you diversify your revenue streams to survive seasonal and market changes.
  • Develop a sourcing network: Develop a network of reliable and trustworthy suppliers by attending trade shows, reaching out to manufacturers, and building relationships with wholesalers and distributors. This can enable you to source products at lower costs, negotiate better deals, and access unique products.
  • Diversify your sourcing channels: Use multiple sourcing channels, such as online marketplaces, trade shows, and overseas suppliers, to access a wider range of products and suppliers. This can help you reduce the risk of supply chain disruptions and improve your product selection.
  • Optimize your inventory management: Optimize your inventory management by using software tools and analytics to forecast demand, manage stock levels, and identify slow-moving products. This can help you avoid stockouts, reduce carrying costs, and improve your overall efficiency.
  • Leverage Amazon programs and services: Take advantage of Amazon’s programs and services, such as Fulfillment by Amazon (FBA), Amazon Advertising, and Amazon Brand Registry, to increase your visibility, sales, and brand recognition. These programs can also help you improve your customer service and fulfillment capabilities.
  • Continuously monitor and analyze performance: Continuously monitor your performance metrics, such as sales, profitability, and customer feedback, to identify areas for improvement. Use this data to optimize your sourcing strategies, product offerings, and pricing.

By implementing these strategies, you can effectively scale your Amazon business through strategic product sourcing.

Closing thoughts

Effective Amazon product sourcing is essential to the success of any Amazon business. By using a combination of sourcing strategies and tools, sellers can expand their product catalogs and scale their businesses. However, sourcing inventory requires capital, which can be a significant challenge. This is where Kickfurther comes in – offering flexible funding options to help you secure the inventory you need to grow your business. By partnering with Kickfurther, we can fund up to 100% of your inventory costs on flexible payment terms that you control.

How Kickurther can help

Becoming a seller on Amazon can present a unique set of challenges for business owners. As demand for your products grows, maintaining working capital can be difficult while trying to fulfill a growing number of orders. 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.

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

How to Create an Invoice

Posted on by Pavel

Invoices are multipurpose in the sense they help businesses document and track transactions as well as serve as a customer facing document that helps to collect payment. The idea of an invoice is to prove what is owed, along with a description of the charges, how to pay, penalties for not paying, and so forth. An effective invoice should eliminate the need for questions unless there’s a dispute about a charge. While invoices are a serious document, they can be lightened up with some branding. Invoices represent your brand so keep them on theme and ensure you are easy to deal with. From how the invoice is displayed to how payments can be sent, invoices are part of the customer experience. 

In this guide, we will explore the importance of invoicing for businesses and outline the steps you can take for creating effective invoices. When done effectively, invoices can help improve cash flow and maintain strong customer relationships.

Even with timely and effective inventory management though, cash flow can be challenging. Inventory financing can help product-based businesses maintain healthy cash flow at all times. Operating a successful business requires business owners to be mindful and always one step ahead. While invoices are flowing in and out, business owners need a way to stock plenty of inventory and keep operations afloat. While properly managing invoices can help you collect payment faster, it’s not the entire solution for cash flow challenges,

Here’s what you should know about how to create an invoice.

What is an invoice?

In simplest terms, an invoice is a document that lists the details of a transaction between a buyer and a seller. It is a legal document that serves as a record of the goods or services provided, their quantities, prices, and payment terms. In other words, an invoice is a bill that a seller sends to a buyer to request payment for the goods or services provided. Invoices can include information you see fit, but there are some pieces of information invoices should always include:

  • Itemized charges
  • Buyer and seller information (address, phone number, etc.)
  • How to pay the invoice
  • Penalty for late payments
  • Contact for issues regarding the invoice 
  • Total amount due
  • Taxes (if applicable)
  • Dates (invoice date, sale date, delivery date, etc – document everything)

Invoicing is a critical aspect of business operations, helping businesses to manage their cash flow and maintain records of transactions for accounting and financial reporting purposes.

Why invoices are important in business

In business, invoices are a crucial part of the accounting process, as they provide a record of transactions and help ensure that payments are made on time. Beyond aiding in accounting, they are important for other reasons including: 

  • Legal requirements: Invoices serve as legally binding documents that outline the terms of a transaction between a buyer and seller. In some countries, businesses are required by law to issue invoices for all sales. Verbal agreements are not enough in the business world, always get documentation of any agreements.
  • Payment collection: As a business owner, you struggle enough with cash flow. Therefore, you should do everything you can to ensure you are paid on time. Invoices are used to request payment from customers for goods or services provided. They provide a clear record of what was purchased and how much is owed, which helps to minimize disputes and ensures timely payment.
  • Accounting and record keeping: Invoices are important for accounting purposes as they provide a detailed record of transactions that can be used for financial reporting, tax compliance, and tracking business expenses.
  • Inventory management: Invoices help businesses keep track of the inventory they have sold, which is important for tracking sales trends, forecasting demand, and making purchasing decisions. Beyond invoicing through inventory management tools should be used for effective inventory management.
  • Customer relationship management: Invoices can be used as a tool to communicate with customers and build long-term relationships. They can include personalized messages, promotions, and reminders of upcoming due dates, which can help to improve customer satisfaction and loyalty.

The benefits of an organized bookkeeping and invoicing system will speak for itself. In the event you ever encounter an issue, you’ll be eternally grateful for the investment to keep records properly. Invoicing is an important part of that system. Here are some of the benefits of effective invoice practices:

  • Improved cash flow: Effective invoices can help to ensure that payments are made promptly, which can improve cash flow and reduce the need for borrowing or extending credit.
  • Increased efficiency: By providing clear and concise information about transactions, effective invoices can reduce the time and effort required for billing and payment collection.
  • Stronger customer relationships: Effective invoices can improve customer satisfaction by providing clear and accurate information about transactions, making it easier for customers to understand their purchase and payment history.
  • Better financial planning: Accurate and timely invoicing can help businesses to manage their finances more effectively by providing insight into revenue and expenses.
  • Enhanced brand image: Professional and well-designed invoices can reflect positively on a business and help to establish a professional image, increasing customer confidence and loyalty.

Invoices are sent to customers, therefore, they are a representation of your brand. Invest the time to ensure they are informative, clear, and branded. Clearly state payment expectations and inform customers of how they can pay. Plus, inform how they can contact you with any questions. Be easy to do business with.

How to create an invoice [step by step]

Here are 10 steps that will help you create an efficient invoice. 

  1. Choose an invoice template: Start by selecting an invoice template that suits your business needs. You can find a variety of templates online or in your accounting software.
  2. Identify the basic information: Start by including the date of the invoice, invoice number, and customer information, including their name, address, and contact information.
  3. Brand your invoice: Include your business logo, colors, and any other branding elements to make your invoice look professional and consistent with your brand.
  4. Use a professional header: Create a header that includes your business name, address, and contact information, as well as the customer’s name and address.
  5. Itemize the products or services: Create a detailed list of the products or services provided, including quantities, descriptions, and prices. 
  6. Add taxes and fees: If applicable, include any taxes or other fees, such as shipping or handling, in the total cost.
  7. Calculate the total cost: Add up the cost of the products or services, along with any applicable taxes or fees, to arrive at the total amount due. 
  8. Payment terms: Clearly state the payment terms, including the due date and accepted payment methods, such as credit card, check, or bank transfer. It’s beneficial to also state any late payment policies or charges that may apply.
  9. Add terms and conditions: Include any terms and conditions that apply to the transaction, such as warranties or return policies.
  10. Review and send: Double-check the invoice for accuracy and completeness, then send it to the customer via email, mail, or other preferred method.

By following these steps, you can create a professional and effective invoice that will help you manage your business finances and maintain positive customer relationships. 

Closing thoughts

Invoices can be crucial for businesses to manage cash flow and maintain accurate financial records. By creating detailed and professional invoices, businesses can reduce the likelihood of payment delays, maintain healthy customer relationships, and accurately track their transactions. Plus, keeping track of invoices and eliminating confusion can help maintain a healthy cash flow. 

Growing businesses often struggle with cash flow – so they must do everything they can to proactively manage cash flow. Inventory financing for small businesses can help maintain cash flow while invoices flow in and out. At Kickfurther, we’re committed to helping small businesses (just like ours) access the funding they need for inventory in an accessible and affordable manner. Up to 30% lower cost than comparable options, Kickfurther can support the growth of your business by ensuring you always have enough inventory on hand and healthy profit margins. 

How Kickfurther can help

Offering inventory on consignment, Kickfurther can help you fund your largest expense – inventory! This allows you to meet growing demand without exhausting your cash on hand or putting debt on your books. With no immediate repayments, you don’t pay us back until your products sell, giving you a repayment schedule you control. 

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

Forecasting your business in a downturned economy

Posted on by Pavel

Business forecasting is essential for any organization, especially in a downturned economy,  as it helps in anticipating future trends and changes in the market, which allows businesses to plan for the future, make informed decisions, and set realistic goals. 

Accurate forecasting helps in identifying potential risks and opportunities, which can help businesses to take timely actions to mitigate risks and capitalize on opportunities. Beyond forecasting, maintaining cash flow on hand can greatly help businesses operate during an economic downturn, as limited capital during a downturn can create significant challenges for businesses.

Businesses struggling to stock inventory and keep cashflow healthy may need to explore  inventory financing. At Kickfurther we recognize the challenges of traditional inventory financing including the cost and complexity. In true entrepreneur fashion, we’ve created the best kept secret for inventory funding. At Kickfurther business owners can connect with our community of backers ready to fund up to 100% of inventory. Plus, take advantage of flexible repayment terms that put you in control. Get the inventory you need now and pay later. Let us help you push through challenging economic times and navigate toward success. 

Here are some tips for managing forecasting in a downturned economy. 

What is forecasting in business?

Forecasting in business is the process of predicting future trends or events based on past and present data, in order to make informed decisions about the future of the business. The main purpose of business forecasting is to help companies plan for the future by identifying potential opportunities, threats, and challenges that may arise.

Business forecasting can be used to predict various aspects of a business, such as sales revenue, customer demand, market trends, economic conditions, and operational costs. Forecasting techniques may involve statistical analysis, mathematical models, and expert opinions. Business forecasting is a crucial tool for businesses of all sizes and industries, as it helps them to allocate resources, make strategic decisions, and adapt to changing market conditions. By providing insights into the future, forecasting allows businesses to stay competitive and achieve long-term success.

Why is forecasting important for my business in an economic downturn?

Forecasting is especially important for businesses during an economic downturn because it can help them navigate the uncertain and challenging times ahead. Here are a few reasons why forecasting is crucial during an economic downturn: 

  • Helps identify potential risks: Business forecasting allows you to identify potential risks and challenges before they become major issues. By anticipating future demand, cash flow problems, or supply chain disruptions, you can take proactive steps to mitigate these risks and protect your business.
  • Enables cost-cutting measures: In an economic downturn, businesses need to cut costs to survive. Forecasting can help you identify areas where you can reduce costs, such as operational expenses, inventory levels, or staffing.
  • Supports resource allocation: With limited resources, it’s essential to allocate them effectively. Forecasting can help you determine where to allocate your resources, such as investing in marketing campaigns that are most likely to drive sales, or focusing on products or services that are in high demand.
  • Helps with decision-making: In times of economic uncertainty, making informed decisions is critical. Forecasting provides valuable insights into market conditions, consumer behavior, and industry trends, allowing you to make data-driven decisions that can lead to long-term success.

In short, forecasting helps businesses of all sizes prepare for and adapt to economic downturns, allowing them to survive and thrive in challenging times. Downturns can be even more challenging for small businesses, as they often have limited resources to navigate the challenging times. Inventory financing for small businesses is often the difference between survival and failure. With affordable access to inventory funding, businesses have an increased chance of surviving a downturn economy while keeping cash flow in the green. At Kickfurther, businesses get the opportunity to paint a picture of what they do and who they are through a creative profile. Once your profile is established you can start getting the funds you need to beat a downturned economy. 

How to choose the best forecasting method for your business

Choosing the best forecasting method for your business depends on several factors, including the type of data you have, the level of accuracy you need, and the resources you have available. Here are some steps to help you choose the best forecasting method for your business:

  • Define the forecasting problem: Start by defining the problem you want to solve with forecasting. What question are you trying to answer? What type of data do you have available?
  • Choose the right data: The accuracy of your forecast depends on the quality and relevance of your data. Choose data that is relevant, accurate, and up-to-date. You may need to clean and preprocess your data before using it for forecasting.
  • Identify the type of forecasting method: There are several types of forecasting methods, including time series analysis, regression analysis, and machine learning. Choose a method that is appropriate for your data and the level of accuracy you need.
  • Evaluate the performance of the forecasting method: Once you have chosen a forecasting method, evaluate its performance using historical data. This will help you determine whether the method is accurate and reliable.
  • Refine and improve the forecasting model: If the forecasting model is not accurate enough, you may need to refine and improve it. This may involve tweaking the parameters of the model or using a different method altogether.
  • Monitor and update the forecast: Finally, once you have a reliable forecast, monitor it regularly and update it as needed. This will help you stay on top of changes in the market and make adjustments to your business strategy accordingly.

Choosing the best forecasting method for your business requires careful consideration of your data, the level of accuracy you need, and the resources you have available. It’s important to evaluate the performance of your forecast regularly and refine it as needed to ensure its accuracy and reliability. 

Tips for adjusting your forecasting approach in response to a downturned economy

Adjusting your forecasting approach in response to a downturned economy is essential to ensure your business stays resilient during difficult times. Here are some tips to help you adjust your forecasting approach:

  • Review and revise your assumptions: In an economic downturn, assumptions about the future may no longer hold true. Review and revise your assumptions based on current economic conditions and data.
  • Adjust your forecasting time frame: Economic downturns may require a shorter forecasting time frame to account for more immediate changes in the market.
  • Focus on scenario planning: Scenario planning involves creating multiple scenarios based on different assumptions and outcomes. This approach can help you prepare for different potential outcomes in a downturned economy.
  • Incorporate external factors: External factors such as changes in government policies, interest rates, and consumer behavior can significantly impact your business. Incorporate these factors into your forecasting models.
  • Be conservative in your forecasting: In an economic downturn, it’s better to be conservative in your forecasting to avoid overestimating revenue and underestimating costs.
  • Monitor and adjust your forecasting regularly: Economic conditions can change rapidly, so it’s essential to monitor your forecasting regularly and adjust it as needed to reflect new data and changing market conditions.

What to do if my forecasting indicates my business may not be profitable in a downtrending economy

If your forecasting indicates that your business may not be profitable in a downtrending economy, there are several steps you can take to mitigate the risk and ensure the long-term success of your business. Here’s a summary of what to do:

  • Cut costs: Identify areas where you can reduce costs, such as operational expenses, inventory levels, or staffing. You may need to make difficult decisions such as layoffs or salary reductions to reduce your costs.
  • Explore new revenue streams: Look for opportunities to diversify your revenue streams, such as expanding your product or service offerings or entering new markets. This can help you generate additional income to offset any losses.
  • Increase efficiency: Improve your operational efficiency by streamlining processes, optimizing supply chain management, and leveraging technology. This can help you reduce costs and increase productivity.
  • Negotiate with suppliers and vendors: Talk to your suppliers and vendors to negotiate better payment terms or pricing. This can help you reduce your costs and improve your cash flow.
  • Seek financial assistance: Consider seeking financial assistance from government programs, investors, or lenders to help you weather the economic downturn.
  • Communicate with your stakeholders: Keep your employees, customers, and stakeholders informed about your financial situation and your plans to address it. This can help you build trust and support for your business during challenging times.

Most importantly, don’t panic. Dive in and get creative. Should you choose to leverage inventory financing when red flags are present, you should have a backup plan for repayment. 

How to continue to adapt in an economic downturn

Adapting to an economic downturn is essential for businesses to survive and thrive in difficult times. Here are some steps you can take to continue to adapt: 

  • Stay informed: Stay up-to-date on the latest economic and market trends, government policies, and consumer behavior. This can help you make informed decisions and adjust your business strategy accordingly.
  • Review and adjust your business strategy: Review your business strategy regularly and adjust it as needed to reflect changes in the market. This may involve revising your target market, redefining your value proposition, or shifting your focus to new products or services.
  • Embrace innovation: Look for opportunities to innovate and differentiate your business from competitors. This may involve investing in new technology, exploring new business models, or collaborating with other businesses.
  • Engage with customers: Engage with your customers regularly to understand their needs and preferences. This can help you adjust your product or service offerings to meet their changing demands.
  • Build resilience: Build resilience into your business by diversifying your revenue streams, developing contingency plans, and maintaining a strong balance sheet.
  • Monitor and manage cash flow: Cash flow is critical during an economic downturn. Monitor your cash flow regularly and take steps to manage it effectively, such as reducing expenses, accelerating receivables, or negotiating better payment terms with suppliers.

Maintaining cash flow is key to a businesses success, no matter the status of the economy, but especially during economic downturns. By taking advantage of inventory funding through the Kickfurther platform, you can stress less on fulfilling orders and focus more on doing what you love – maintaining and growing your business! The economy fluctuates and as a business owner you must know how to navigate good and bad times. Stay close to your money and understand sales. A lack of data can be a recipe for failure. In a downturned economy, it’s even more critical to analyze data and make informed business decisions. 

Closing thoughts

During an economic downturn, forecasting becomes even more crucial as businesses face increased uncertainty and financial pressure. It’s essential for businesses to adjust their forecasting models to reflect changes in the market and take timely actions to mitigate risks and capitalize on opportunities. Businesses that prioritize accurate forecasting and adapt their strategies to the changing economic environment are more likely to weather the storm and emerge stronger from an economic downturn. Beyond forecasting, maintaining capital and cash flow can help businesses maintain operations. By offering inventory on consignment, Kickfurther can help you fund inventory to meet demand without exhausting your cash on hand. 

How Kickfurther can help

Maintaining capital on hand during an economic downturn can be crucial to your businesses success and survival. Kickfurther’s platform helps entrepreneurs secure funding for their largest expense – inventory! Offering inventory on consignment, Kickfurther provides inventory funding that can free up the working capital necessary to maintain operations during challenging economic times. 

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

Startups Guide to Business Credit Cards

Posted on by Pavel

Starting a new business comes with various challenges and a business credit card can provide you access to the funding necessary to maintain operations. Getting a business credit card for your startup can be a great way to manage business expenses, earn rewards, and establish business credit. Educating yourself on the requirements and associated fees before applying can help you determine if a business credit card is the right source of funding for your startup. Credit cards are not designed as a long-term financing solution for major expenses such as inventory. Startups may need to consider  startup inventory financing and other options in combination with a credit card. 

Inventory is often a businesses largest expense and can present 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. With ideal funding solutions such as Kickfurther available, before concluding that a business credit card is the answer – do your research. 

Looking to apply for a business credit card for your startup? Here’s what you should know. 

What is a business credit card and how is it different from a personal credit card?

A business credit card is a type of credit card specifically designed for the use of small business owners and entrepreneurs. It offers features and benefits that cater to the needs of businesses, such as rewards for business-related expenses, employee cards, and detailed spending reports. A business credit card is different from a personal credit card in several key ways:

  • Business Ownership: A business credit card is issued in the name of the business, rather than an individual, which means the business is responsible for paying the debt.
  • Credit Limit: Business credit cards typically have higher credit limits than personal credit cards, which can be helpful for managing expenses associated with running a business.
  • Rewards: Business credit cards offer rewards and cash-back programs that are tailored to the needs of businesses, such as rewards for office supplies, travel expenses, and fuel purchases.
  • Spending Reports: Many business credit cards offer detailed spending reports that can help business owners track expenses and monitor employee spending.
  • Tax Deductibility: Business expenses charged to a business credit card may be tax-deductible, which can provide a significant benefit for businesses.

What are the benefits of using a business credit card for startups?

Using a business credit card for your startup provides numerous benefits, including: 

  1. Building credit: A business credit card can help establish a credit history for your startup, which can be helpful in securing other financing in the future.
  2. Separating personal and business finances: By using a business credit card, you can keep your personal and business finances separate, making it easier to track expenses and monitor the financial health of your business.
  3. Rewards and cash back: Many business credit cards offer rewards and cash-back programs that can help you save money on business-related expenses, such as travel, office supplies, and fuel purchases.
  4. Improved budgeting and expense tracking: Tack expenses in real-time and see where your money is going, making it easier to manage your budget and keep your business financially healthy.
  5. Inventory purchases: Business credit cards can provide the additional buying power needed to fund larger inventory purchases and can streamline the purchasing process. 

Struggling to make the large inventory purchases your startup needs to continue growing?  Learn more about inventory financing.  Credit cards can help improve cash flow, but be careful swiping if you don’t have the cash to cover the balance. 

How can a business credit card help with cash flow management?

As a startup, cash flow management is essential to maintaining operations and meeting your businesses financial obligations. Business credit cards can help manage cash flow by offering purchasing power and reducing the amount of money on hand that is needed to cover day-to-day expenses, rather than paying for everything upfront. If you use your business credit card responsibly, you may be able to increase your  credit line, providing your business with more funds in the future and greater purchasing power. 

What are the eligibility requirements for obtaining a business credit card?

The eligibility requirements for obtaining a business credit card can vary from card to card and from lender to lender, but typically, the following requirements are necessary:

  • Business structure: You must have a legitimate business structure, such as a sole proprietorship, partnership, LLC, or corporation.
  • Business information: You’ll likely need to provide information about your business, including the type of business, the length of time it has been in operation, and the business’s annual revenue.
  • Personal information: You’ll also likely need to provide personal information, including your Social Security number, date of birth, and income.
  • Credit score: Lenders can check your personal and business credit scores to determine your eligibility for a business credit card. A good credit score, typically 680 or higher, is usually required to be approved for a business credit card.
  • Business financials: Some lenders may require financial information about your business, such as balance sheets, income statements, and tax returns.

It’s important to note that requirements can vary depending on the lender and the type of business credit card you are applying for, so it’s a good idea to check with the card issuer to see what specific requirements they have. In general, having a strong credit history, established business, and a solid financial record can help increase your chances of being approved for a business credit card.

Do business credit cards help build business credit history?

Yes, using a business credit card can help build business credit history. Business credit history is a record of a company’s borrowing and payment history and can be used to assess the creditworthiness of a business. By using a business credit card and paying bills on time, you can demonstrate to lenders and credit bureaus that your business is financially responsible and capable of paying its debts. Having a strong business credit history can be beneficial in several ways, including improved access to future funding, lower interest rates, higher credit limits and better negotiating power when negotiating terms with suppliers and vendors. 

What are the rewards and perks offered by business credit cards?

Business credit cards often offer a range of rewards and perks to incentivize business owners to use them.. Some of the most common rewards and perks offered by business credit cards include:

  • Cash back: Earn a percentage of your spending back in the form of a cash rebate.
  • Travel rewards: Frequent flyer miles, hotel points, or travel credits, for purchases made with the card.
  • Points programs: Earn points for purchases and redeem them for a variety of rewards, such as merchandise, gift cards, or statement credits.
  • Employee cards: Add employee cards, which can be a useful tool for managing expenses and keeping track of spending.
  • Sign-up bonuses: Certain number of points or cash back, for meeting a minimum spending requirement within a certain period of time.
  • Perks: Such as extended warranty protection, concierge service, or travel insurance.

It’s important to keep in mind that rewards and perks can vary greatly from card to card, so it’s a good idea to compare different business credit card offers and choose the one that best meets your business’s needs and spending habits. Additionally, be sure to read the terms and conditions carefully to understand how rewards and perks are earned and redeemed, and what the restrictions may be.

What startups should look for when choosing a business credit card

When choosing a business credit card for your startup, you should consider several key factors to determine the best card that fits your business’s  needs. This includes analyzing rewards offered, interest rates associated with the card, annual fees, potential sign–up bonuses, and repayment options. 

  • Fees associated with business credit cards: It’s important to understand all the fees associated with a business credit card before you sign up, so you can determine whether it’s a good fit for your business’s needs. Typical fees that may be associated with business credit cards, include:
    • Annual Fees: Some business credit cards charge an annual fee to use the card, which can range from $0 to several hundred dollars.
    • Late Payment Fees: If you miss a payment deadline, you may be charged a late payment fee.
    • Over-Limit Fees: If you exceed your credit limit, you may be charged an over-limit fee.
    • Balance Transfer Fees: If you transfer a balance from another credit card to your business credit card, you may be charged a balance transfer fee, typically a percentage of the amount transferred.
    • Cash Advance Fees: If you take out a cash advance with your business credit card, you may be charged a cash advance fee, typically a percentage of the amount advanced.
    • Foreign Transaction Fees: If you use your business credit card to make purchases outside of the country, you may be charged a foreign transaction fee, typically a percentage of the purchase amount.

How Kickfurther can help

While business credit cards offer access to funding day-to-day purchases, they can come with high interest rates, rigid repayment schedules, and limited funding. Therefore they are less than ideal when it comes to funding large inventory purchases. If you’re looking for an affordable inventory funding solution – Kickfurther is the golden ticket. Kickfurther’s platform helps entrepreneurs secure funding for their largest expense – inventory! It’s our mission to hustle alongside you and your dream to open new doors.

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? 

  1. No immediate repayments: You don’t pay back until your product sells and you control your repayment schedule. 
  2. Non-dilutive: Kickfurther doesn’t take your equity.
  3. 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.
  4. 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

By obtaining a business credit card, you can gain access to capital that can assist with maintaining day-to-day operations. Educating yourself on the requirements and associated fees before applying will help you determine if a business credit card is the right source of funding for your startup. It is also encouraged to explore alternative funding options, such as inventory funding from Kickfurther, that can help you fund inventory to meet demand without exhausting your cash on hand. 

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