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6 Amazon seller funding options for inventory

Posted on May 25, 2022June 9, 2026 by Amanda Levine

Updated June 9, 2026. Originally published May 25, 2022.

Quick answer

Amazon sellers have several inventory financing options: Amazon Lending, SBA loans, 7(a) loans, business credit cards, merchant cash advances, and inventory funding marketplaces like Kickfurther. A handful of sellers also use a business line of credit or a term loan from a bank. The right Amazon seller financing depends on how fast you need the money, how much you need, your credit score, and whether you want fixed monthly payments at a set APR or payments tied to your sales.

Are you waiting for Amazon to pay you so you can buy more inventory and keep your business moving? This is a common dilemma that many sellers find themselves in. I’ve talked with hundreds of Amazon FBA sellers over the years, and a cash crunch right before a big season comes up again and again.

So what funding options are out there, and which one is right for you? In this post I’ll walk through six Amazon seller funding options for inventory, plus two more worth knowing about, so you can finance your Amazon business without stalling your growth. Keep reading to learn more.

What is inventory financing for Amazon sellers?

Inventory financing for Amazon sellers gives you a lump sum of working capital so you can order inventory without waiting on Amazon to pay you. It’s a way to keep stock on hand when your cash is tied up in sold inventory that hasn’t paid out yet, which is a constant reality for anyone running Fulfillment by Amazon (FBA).

If you use Amazon’s own financing, the application process can take only a few moments, and you might not have to put your inventory up as collateral. In some cases there isn’t even a credit check, which makes Amazon inventory financing a more desirable option than a bank loan for some sellers.

To qualify, lenders look at your seller account health and Amazon sales history rather than hard assets. That can make you eligible for a cash advance or inventory loan with no tangible collateral needed. You just have to show that you’re capable of repaying with your business income.

That said, most Amazon sellers will need alternative options for inventory funding. There are plenty out there, and some are a better fit than Amazon’s own financing depending on your loan amounts, credit history, and repayment terms. I’ll look at those alternatives below.

Common reasons Amazon sellers seek inventory funding

Amazon sellers don’t always look like traditional businesses, and that can make it tough to get approved for a business loan. The whole foundation of an Amazon business is the products it sells, so a lack of funds sends many sellers searching for alternative inventory funding options.

Another common reason is to improve cash flow. Purchasing and holding large quantities of inventory can disrupt cash flow, especially when Amazon can take a while to pay for sold inventory. Inventory funding helps smooth cash flow and ease that financial stress so you can keep growing your business.

Most common inventory funding options for Amazon sellers

Here are six of the most common ways for Amazon sellers to get inventory financing, side by side.

Option	Best for	Funding speed	What to watch for
Amazon Lending	Existing sellers who want a quick, simple option	Fast	Smaller loan amounts; eligibility is invitation-based and tied to account health
SBA loans	Established businesses wanting a lower APR	Slow	Smaller amounts, a credit check, and more paperwork
Business credit cards	Short-term expenses you can repay within the billing cycle	Immediate	High interest rate and APR if you carry a balance month to month
Merchant cash advances	Sellers with steady card sales who need cash fast	Fast	Repaid as a daily percentage of sales; can be costly
7(a) loans	Working capital with minimal eligibility requirements	Slow	Repaid with monthly principal and interest; often needs a personal guarantee
Kickfurther	Product brands that want payments tied to sales cycles	3 to 5 business days to approve, then same-day wire	For physical product sellers with $150K to $15M in revenue

Amazon Lending

Amazon Lending is offered, as you might guess, by Amazon itself. These direct loans let sellers borrow working capital at an APR that’s often lower than a business credit card. The application process is simpler because Amazon already sees your sales history, but the loan amounts tend to be smaller and eligibility is invitation-based. The upside is you’ll have the money quickly, and you usually won’t sign a personal guarantee.

SBA loans

Amazon sellers may also qualify for SBA, or Small Business Administration, loans. These are usually small, a few thousand dollars or so, and you may not get the money as quickly as you would working directly with Amazon Lending. Expect a credit check, a look at your credit score, and a request for bank statements and tax returns as part of the application process. The trade-off for that paperwork is a lower APR than most short-term options.

Business credit cards

Another way to get inventory financing is to put it on your credit card. This isn’t always the wisest choice financially, since business credit cards tend to carry a high interest rate and APR. If you need to float those costs for longer than one month, a credit card is not advised. For short-term expenses when you’re in a pinch, though, a business credit card is fine, and it can help you build business credit when you pay it off on time.

Merchant cash advances

A merchant cash advance gives you a cash advance based on your future credit card income. You don’t have regular fixed payments. Instead, the lender recoups a set percentage of your credit card sales each day or week. There’s no single APR to compare, so read the terms closely, because a merchant cash advance is often one of the most expensive ways to fund inventory.

7(a) loans

A 7(a) loan is offered by the Small Business Administration. It provides short- and long-term working capital and has minimal eligibility requirements compared with a conventional bank loan. Most 7(a) loans are repaid with monthly payments of principal and interest, carry a competitive APR, and often require a personal guarantee from the business owner.

Inventory funding with Kickfurther

One of the strongest Amazon inventory funding options for sellers is Kickfurther. Kickfurther connects you to a community of Buyers who help fund the inventory you need, at up to 30% lower cost than other options. You pay on a custom repayment schedule tied to your sales, and you can fund up to $2M+ in inventory. Approval typically takes 3 to 5 business days while our team reviews your financials, sales velocity, and inventory turnover. Once you’re approved, funds can be wired the same day.

Two more options: business lines of credit and term loans

Beyond the six above, two traditional products show up a lot when sellers shop around, so they’re worth a quick mention.

A business line of credit works like a flexible reserve: you draw what you need, pay interest only on the balance you use, and pay it back so the line of credit is available again. It’s handy for uneven cash flow, though approval usually depends on your credit score, time in business, and bank statements.

A term loan gives you a fixed lump sum that you repay over a set period with a fixed APR. A term loan from a bank can offer larger loan amounts than a line of credit, but it tends to have stricter eligibility and may require a personal guarantee. Both a line of credit and a term loan are slower to fund than Amazon Lending or a merchant cash advance.

Benefits of financing your inventory as an Amazon seller

There are many benefits for Amazon sellers who finance their inventory. Here are some of the most noteworthy.

Relieve short-term cash flow issues

The most tangible benefit is that you can use your account health and sales history to get inventory financing fast, so you won’t have to worry about stockouts or lost Amazon sales.

Secure cash for extra stock

Inventory financing lets you buy extra stock for important selling dates like Black Friday or Prime Day. With the money in hand, you can buy more inventory, turn it over faster, and capture more sales.

Add new products

Thinking about adding new products, or even completely new and unrelated ones? Financing gives you the working capital to expand so you don’t miss out on big opportunities just because money is tight.

Take advantage of special offers

Financing also lets you take advantage of special offers. Slower months can be a good time to buy inventory at off-season discounts. With the right financing in place, you can take advantage of those deals regardless of your cash flow, which can help save you money.

How fast can my business get Amazon inventory financing?

It depends on the option you choose. With Kickfurther, approval typically takes 3 to 5 business days, since our team reviews your financials, sales velocity, and inventory turnover. Once you’re approved, funds can be wired the same day. Other options range from instant (a business credit card you already hold) to several weeks (an SBA loan, a 7(a) loan, or a term loan from a bank).

Eligibility and qualifications for Amazon seller financing

To get inventory financing, you’ll usually need to be a product-based business; service-based businesses are not eligible. You should have been in business for at least one year and meet the lender’s minimum requirements. Some lenders only work with businesses that need hundreds of thousands of dollars in inventory to make the loan amounts worth it.

Eligibility for most options also depends on your credit score and credit history. You may need to provide a detailed financial history, including tax returns, profit and loss statements, recent bank statements, and inventory turnover ratios, and a bank may ask for a personal guarantee. Having a simple business plan and clean sales history on hand speeds up the application process for almost every funding option.

At Kickfurther, you’ll need to sell a physical product or non-perishable consumables with revenue between $150K and $15M over the last 12 months. If you meet these minimum requirements, you can create a profile to get started.

How Kickfurther can help

If you’re an Amazon seller, you already know what it takes to succeed in a competitive space. Kickfurther can help you meet your goals while saving you time and money.

Kickfurther makes funding your Amazon inventory easier. With a 99% funding success rate and 1,000+ opportunities funded, Kickfurther has a track record of helping small businesses grow. As the world’s first online inventory financing platform, Kickfurther helps companies access funds they can’t get through traditional sources. Perks like customized repayment schedules and same-day funding once you’re approved can give your business an edge.

Amazon FBA sellers use Kickfurther to fund up to $2M+ in inventory on a custom repayment schedule tied to expected sales, at up to 30% lower cost than other options. Approval takes about 3 to 5 business days, and funds can be wired the same day once you’re approved, so you can stock up without turning down a selling opportunity because cash is tight.

See if Kickfurther is a fit

FAQs

Can new sellers get Amazon seller funding for inventory?

It’s harder but possible. Most options, including Kickfurther, ask for at least one year in business and a minimum revenue history. Newer sellers with strong account health may still qualify for Amazon Lending invitations or a business credit card while they build the sales history other options require.

Do I need a good credit score or a personal guarantee?

It depends on the option. SBA loans, 7(a) loans, term loans, and most business lines of credit run a credit check, weigh your credit score, and often ask for a personal guarantee. Amazon Lending leans on your seller account health instead, and Kickfurther reviews your business financials and sales velocity rather than your personal credit score.

How much does Amazon inventory financing cost?

It varies widely by option. Business credit cards and merchant cash advances tend to be the most expensive, while SBA and 7(a) loans tend to carry the lowest APR. Kickfurther uses a fixed cost of capital, which can run up to 30% lower than other options, with volume-ordering discounts that can help offset it.

What’s the fastest way to fund inventory for my Amazon business?

A business credit card is instant if you already have one. For dedicated inventory funding, Kickfurther approves applications in about 3 to 5 business days and can wire funds the same day once you’re approved, compared with the weeks an SBA loan, 7(a) loan, or term loan can take.

10 SEO Tips for Ecommerce Businesses

Posted on May 19, 2022January 28, 2025 by Amanda Levine

If you’re running an ecommerce business, then you know that SEO is vital to your success. In order to attract customers and convert them into buyers, you need to rank high in search engine results pages. Luckily, there are a number of things you can do to improve your SEO rankings. Keep reading to learn exactly how to do SEO for ecommerce and 10 ecommerce SEO tips for bolstering your business.

What is SEO?

Search engine optimization, or SEO, is the process of improving the visibility and ranking of a website in search engine results pages (SERPs). It is a collection of techniques used to increase web traffic from organic (unpaid) search results. SEO includes both on-page and off-page strategies that help to improve a website’s ranking in search engine results pages.

On-page SEO tactics include optimizing website content for relevant keywords, addressing technical issues that can hinder search engine crawlers, and improving site structure. Off-page SEO tactics include building links from high-quality websites and creating content that attract links naturally.

When employed together, these two types of SEO can help to increase website traffic, leads, and sales.

How SEO can help an eCommerce business

As any online retailer knows, eCommerce is a highly competitive landscape. In order to succeed, businesses need to find ways to stand out from the crowd and attract potential customers.

One of the most effective ways to do this is through search engine optimization (SEO). SEO is the process of optimizing a website for Google search, making it more likely to appear high in search results. This can be achieved through a variety of methods, such as creating keyword-rich content, building links, and improving site speed. For eCommerce businesses, SEO can be a powerful tool for driving traffic and increasing sales.

By investing in SEO, businesses can improve their visibility online and reach a wider audience of potential customers. In today’s digital world, SEO is an essential part of any eCommerce marketing strategy.

Best 10 SEO tips for eCommerce brands

Choose the right keywords that people search for

Choosing the right keywords is all about understanding your audience. Who are your buyers and what are they searching for? It’s important to do some research and get a sense of what language they will be using when searching for products or services like yours online.

You should also take into account the competitive landscape – which words are other companies targeting and how can you stand out from the crowd? Ultimately, engaging with your target audience and focusing on quality content will help you to find the most effective keywords for boosting your search engine ranking and driving more traffic to your site.

Utilize descriptive product descriptions

When it comes to driving traffic to your website, search engine optimization is key. And one of the best ways to improve your SEO is to write descriptive, keyword-rich product descriptions. By including relevant keywords in your product descriptions, you can help your website rank higher in search results and attract more visitors.

But beware: stuffing your product descriptions with too many keywords will not only turn off potential customers but could also result in penalties from search engines. The key is to strike a balance by including a few relevant keywords without compromising the quality of your writing. With a little effort, you can create product descriptions that are both informative and SEO-friendly.

Mobile friendly website

A mobile-friendly website is a website that can be easily viewed and used on a mobile device. More and more people are using their smartphones and tablets to access the internet, so it’s important to make sure your website is mobile-friendly.

You can do a few things to make your website more mobile-friendly, such as using a responsive design or creating a separate mobile version of your site. You should also make sure your pages load quickly and that your content is easy to read on a small screen.

By making your website more mobile friendly, you’ll improve your chances of ranking higher in search engine results pages (SERPs), since Google now takes mobile compatibility into account when ranking websites. In other words, making your site mobile friendly can help you attract more visitors and improve your SEO.

Optimized SEO Meta Data

Optimizing your website’s SEO meta data is essential for driving traffic to your site and increasing brand visibility. Many different factors go into optimizing for SEO, including engaging content, carefully chosen keywords, and well-structured web page tags.

However, one of the most important components of effective SEO is optimizing your metadata. This means implementing techniques like using titles and descriptions that accurately reflect the content on each page, as well as making a point to include relevant keywords throughout your metadata. Additionally, it is important to regularly monitor and optimize your meta data in order to stay ahead of the curve when it comes to rising search engine trends.

Valuable, unique and comprehensive content

There is no single formula for creating quality, unique content that will appeal to search engines. However, there are a few key strategies that you can use to ensure that your content is engaging, valuable, and comprehensive. One approach is to focus on incorporating keywords into your text in an organic, natural way. This means that you should avoid overusing or including keywords unnaturally. Instead, take the time to read through your writing and fine-tune the language so that the keywords blend seamlessly into the context of your message.

Another important strategy is to add visual elements such as images and videos whenever possible. Not only can this help to make your content more appealing and interactive, but it also helps search engines better understand what your content is about by providing additional context cues.

Fast page load time

Your website’s page load time is important for two reasons. First, fast page load times improve the user experience on your site. Users are more likely to stay on your site and continue browsing if your pages load quickly. Second, fast page load times are a ranking factor for search engine optimization (SEO). Google and other search engines want to provide their users with the best possible experience, so they favor websites that load quickly.

You can do a few things to improve your website’s page load time, such as optimizing images and using a content delivery network (CDN). By making some simple changes, you can help ensure that your website loads quickly and ranks well in search engine results pages (SERPs).

Measure and tracking Analytics

Analytics are a critical component of search engine optimization (SEO). In order to measure and track your website’s performance, it is important to implement tools like Google Analytics. These powerful platforms allow you to evaluate how well your site is performing with respect to key metrics like traffic volume, conversion rates, and search engine rankings.

They also enable you to track changes over time so that you can make adjustments and optimizations as needed. By measuring and tracking your site’s analytics, you can ensure that your SEO efforts provide real results and deliver the competitive edge your business needs.

Search friendly URL structure

In order for search engines to properly index and rank your website, it is important to have a well-organized URL structure. A search friendly URL contains keywords that help describe the page content, making it easier for both users and search engines to understand what the page is about.

ALT tag in images

ALT tags are a key part of search engine optimization for images. They provide information to search engines about the content of an image, which can help them to index it appropriately and return it in results for relevant searches. For instance, if an image contains a product that someone is searching for, then having an ALT tag with the product name can help the image to appear in the search results.

Avoid broken links

Broken links are a major problem for websites and can have severe repercussions on SEO. As anyone who has ever tried to access a website with a broken link knows, these links are frustrating and can result in lost traffic and potential customers. Furthermore, search engines take broken links into account when ranking websites, so having too many broken links can cause your rank to plummet.

How Kickfurther can help

Kickfurther is the number one solution for affordable inventory funding. With over 1000+ opportunities funded, Kickfurther has helped ecommerce businesses all over the world elevate sales. Kickfurther has an average funding of $78,000, but can fund up to $1MM. As the world’s first online inventory funding platform, Kickfurther enables companies to access funds that they are unable to acquire (or afford) through traditional sources.

If you’re interested in getting funded on Kickfurther, start by creating a free business account. Once you complete the online application you can review deals with potential account reps. Once a deal is made, you could get funded within minutes. Kickfurther is up to 30% lower cost than other options.

The advantages don’t stop there. Enjoy the freedom to pay back backers, only when you start making sales. At the end of each of your sales periods, you’ll submit sales reports to Kickfurther. You only pay for what you’ve sold during that specific sales period.

Conclusion

If you plan to invest in a solid SEO plan, you’ll want to make sure you can sustain the growth. For some ecommerce sellers that will mean having enough cash to buy more inventory. Brands that sell physical products or non-perishable consumables with revenue between $150k to $150MM over the last 12 months can qualify for inventory funding through Kickfurther.

Interested in getting funded on Kickfurther? Create a free business account today!

Effective Ways to improve your Customer Retention Rate

Posted on May 16, 2022 by Amanda Levine

Are you looking for ways to improve your customer retention rate to help your business succeed?

We’ll share some tips that can help you keep your customers happy and engaged.

Read on to learn more.

What is a customer retention rate?

A customer retention rate is a measure of how successful a company is at retaining its existing customers over time.

This can be determined by comparing the number of customers a company has at the start of a given period, such as a month or year, with the number that it has at the end of that same period.

Factors that can influence customer retention rates include the quality and value of the products or services being offered, as well as the effectiveness of marketing campaigns and other promotions.

However, in general, businesses that are able to keep their customers happy and engaged over time tend to have higher customer retention rates than those that struggle to do so.

Ultimately, a high customer retention rate can help businesses increase profits and thrive in their market over time.

Why customer retention rate is important

Customer retention is one of the most important aspects of any business.

A high customer retention rate indicates that a company is providing quality products or services that meet or exceed its customers’ expectations, leading to strong brand loyalty and positive word-of-mouth among consumers.

Moreover, a high customer retention rate allows a company to reduce costs associated with acquiring new customers, such as marketing expenses and incentives for sales leads. Ultimately, having a strong focus on customer retention is crucial for ensuring long-term success and profitability in any industry.

How is a customer retention rate calculated?

Want to know how to calculate customer retention rate? The customer retention rate is a key metric for any business, as it measures the percentage of customers who continue to use a product or service over a given period of time.

To calculate the customer retention rate, simply divide the number of customers at the end of the period by the number of customers at the beginning of the period. For example, if a business has 100 customers at the start of the month and 90 customers at the end of the month, its customer retention rate would be 90%.

The customer retention rate is an important metric because it can help businesses to identify trends and patterns in customer behavior. It can also help businesses to assess the effectiveness of their retention strategies.

What is a good customer retention rate? Ideally, in most industries, you should shoot for a rate over 20%.

What is a customer retention strategy?

A customer retention strategy is a plan for how a business will keep its customers coming back. The goal is to create long-term relationships with customers instead of one-time transactions.

To do this, businesses need to focus on creating value for customers and providing an excellent customer experience. They also need to stay ahead of the competition by understanding what customers want and need.

Additionally, businesses need to continually communicate with customers to ensure that they are satisfied. By following these steps, businesses can develop a strong customer base that will keep coming back.

Best tips to improving customer retention rate

What are the best ways to improve customer retention rates? Here are a few general tips that all businesses can follow in order to boost their retention rates.

Reward loyalty

One way to improve customer retention rates is to reward loyalty. By offering perks, discounts, or other rewards to customers who stick with your business, you can encourage them to keep coming back. This can be an effective strategy for both small businesses and large companies.

It’s important to focus on providing excellent customer service. If your customers are happy with the service they receive, they’re more likely to stay with your business. By providing excellent customer service and rewarding loyalty, you can improve your customer retention rates and keep your business thriving.

Avoid inventory shortages and meet buyer demand

In order to avoid inventory shortages, businesses should focus on forecasting future buyer demand and stocking their shelves accordingly. This can be done through a number of methods, such as analyzing past sales patterns, conducting customer surveys, and monitoring industry trends.

By doing so, businesses will be able to keep their shelves stocked with the products that their customers are looking for, which in turn will improve customer retention rates. In addition, by meeting buyer demand, businesses will be able to avoid the lost sales and added costs associated with inventory shortages. As a result, focusing on avoiding inventory shortages is a key way to improve customer retention rates.

Establish trust

When it comes to improving customer retention, one of the most important factors is building trust. Customers are more likely to stick with a company that they feel they can rely on and that they know will meet their needs. This is especially true in today’s competitive marketplace, where businesses are under increased pressure to offer high-quality products and services at a reasonable price.

To truly establish trust with customers, a business must focus on building meaningful relationships based on transparency and communication. Regularly engaging with customers through surveys and other feedback mechanisms allows companies to further understand their needs and work to meet those needs over time.

Building trust also requires a commitment to reliability, quality, and consistency in both the products and services you provide as well as the way you interact with your customers. By establishing this kind of trust, you can help improve customer retention rates and better position yourself for long-term success in your industry.

Utilize customer data

Customer data is a valuable asset for any business. By understanding who your customers are and what they need, you can improve your chances of retaining them as loyal, long-term customers. There are a number of ways to gather customer data, including surveys, customer interviews, and transaction records.

Once you have this information, you can start to look for patterns and trends. For example, if you notice that a particular group of customers is always Late in making payments, you can start to offer them discounts or other incentives to prompt them to pay on time – or if you see that a certain type of customer is more likely to churn, you can focus your retention efforts on that group.

By using customer data to improve your retention rate, you can keep your business healthy and growing for years to come.

Customer lifetime value

Customer lifetime value (CLV) is a metric that measures the total value of a customer to a company over their lifetime. Improving customer retention rates is one way to increase CLV, as it ensures that customers stick around longer and continue doing business with a company. There are a number of ways to improve customer retention rates, such as providing excellent customer service, offering loyalty rewards, and regularly communicating with customers.

By utilizing CLV to improve customer retention rates, companies can not only increase the amount of business they do with each individual customer, but also improve their overall profitability.

Improve customer retention rate with Kickfurther

Customers need to know that they count on you. This means being able to supply the products they need, when they need them. It also means providing great customer service, establishing a well-loved brand, and so much more. In order to be a stellar business while improving customer retention rate, you may need inventory funding. Inventory funding can help you keep products on your shelves so that your customers aren’t forced to look elsewhere for the products they need. Kickfurther is easy to use and perfect for businesses of all types and sizes. It can also improve cash flow so that you can invest in other areas of your company.

With over 1000+ opportunities funded, Kickfurther has helped businesses all over the world elevate sales. Kickfurther has an average funding of $78,000, but can fund up to $1MM. As the world’s first online inventory funding platform, Kickfurther enables companies to access funds that they are unable to acquire through traditional sources.

Conclusion

Failing to capitalize on the opportunity to serve a customer and turn them into a repeat customer is a disservice to you and the customer. Customer retention will require several variables such as having plenty of inventory, showing customer appreciation, offering great customer service, showing customers they can trust you, and so much more. Inventory funding can help you stock your shelves with inventory while improving cash flow. As a result you can work on improving customer retention rates.

Inventory shortages? Create a free business account and get funding for inventory in minutes!

How to set up business operations in the UK

Posted on May 11, 2022January 28, 2025 by Amanda Levine

The United Kingdom has over 660,000 new businesses registered every year, making it a booming place for startups to thrive.

If you’re considering expanding to the UK, you’re probably aware of the various benefits that operating overseas brings to your business. But how do you take the right steps to set up business operations in the UK?

Follow our guide and watch your business grow.

Get a business license

Depending on your business type, you may need to obtain a number of permits or licenses in order to legally operate in the UK.

Business categories that require specific licenses include the following:

Alcohol and tobacco retail
Restaurants and food prep retail
Athletic coaching
Childcare services
Farming and agriculture
Hairdressing and salon technician
Hospitality
Waste management

Check out GOV.UK’s License Finder online tool if you’re unsure of which licenses/permits you need. They’ll direct you to the right support contact.

Register your business

Next, you will want to designate a legal form and register your business with HM Revenue and Customs (HMRC). This identifies the classification or legal status of your business.

Sole trader

Registering as a sole trader means that a single individual is responsible for the business and its liabilities, losses, and accounting. A sole trader is typically a self-employed person running their own business and receiving post-tax profits.

Partnership

A partnership is run by at least two individuals who share the same amount of responsibility in terms of business debt, overall finances, and accounting. Each partner is also responsible for any losses.

Limited companies

Shareholders (also referred to as business owners) privately own this type of business and are responsible for business debts only up to the value of their shares. So in turn, limited companies are those that keep business finances separate from the owners’ finances.

Limited companies also have more managerial and accounting responsibilities, such as paying Corporation Tax.

Registering your business

You need to register your business with HMRC (based on the legal form you designate) when you set up business operations in the UK.

For example, sole traders need to sign up for self-assessment so that HMRC can collect self-employment income tax. If you’re registering your business as a partnership, you need to designate a nominated partner who keeps records and oversees tax forms.

Registering for self-assessment and partnership is free, but other legal forms may charge a small fee.

Familiarize yourself with UK business laws

Familiarizing yourself with UK business laws is an essential step before setting up operations. Some important topic areas include:

Business tax
Employment regulations
Employee expenses and benefits
Copyright patents and trademarks
Data protection

Be sure you’re following the right rules for your specific business, especially if you sell goods online, buy or sell goods abroad, or store/use personal information. The GOV.UK business section is a great resource for additional information.

Insure your business

To ensure your business has protection against potential threats, you’ll need to apply for business insurance. The type of insurance you need depends on the industry your company is in.

Here are some of the most common types of insurance:

Contents
Building
Commercial property
Professional indemnity
Public liability
Employers’ liability
Vehicle

Fund your business

Once you’ve registered your business, gotten the correct permits, licenses, and more, you need to make sure that your business has the funds to expand. Capital matters for international expansion. However, not all companies have the funds to support this type of growth.

Kickfurther can help you secure the inventory funding that you need to grow. We’ll provide you with capital to help you sell more, and you won’t have to make any payments until after you’ve sold and received payments from your customers.

Kickfurther gives you the support you need early on, and we’ll continue to fund your inventory on a different, larger scale as your business grows. With over 99.5% of deals funded, our marketplace is a great way to get your business operating in full swing.

Carry out administrative duties

Once all of the legal prep is out of the way, you’ll need to take care of some administrative responsibilities before starting up operations in the UK.

Hiring employees

Consider whether you’re transferring workers from your home country to your location in the UK. If that’s the case, you may need to apply for a permit or worker’s visa to legally work.

If you don’t plan to transfer any of your home-based workers, you’ll need to hire freelancers, contractors, or permanent employees in your new location. Then you need to figure out payroll, employee insurance, workplace pensions, and more.

It’s better to have a specialized business or professional help you lay these things out. Failure to comply with employment regulations such as minimum wage, providing legal contracts within two months of employment, and making pension and social security contributions can lead to consequences such as hefty fines.

Accounting

Accounting is a crucial part of running any business, whether it’s in your home country or abroad. In addition to being a legal requirement, it’s essential to gain insight into your finances and make strategic plans for your business.

Businesses often feel forced to decide between handling their accounting internally, which can be time-consuming and error-prone, or outsourcing the work to an accountant.

When you’re looking to hire an accounting firm, it’s important to consider whether you’re better off working with a team of generalists or a team that focuses on your specific business niche.

Generalist accounting firms provide the standard range of services that are often required with accounting. This may include VAT filing, income tax returns, reconciling payouts, virtual CFO advice, and so on.

Alternatively, niche firms have a narrow focus on who they serve, but they bring deep expertise to the table. As a result, they provide a more streamlined service and are better equipped to stay on top of changes in the industry. You’ll likely get more value from partnering with an accountant that focuses on your niche.

Business accounts

To start making transactions, you need to first go through the process of opening a UK bank account.

You’ll need the following in order to set up your UK bank account from overseas:

Official proof of identity for all business partners
Proof of address on an official mail item or bank statement
Contact details and full business address
Estimated annual turnover
Your Companies House Registration Number
Certificate of incorporation, memorandum, and articles of association (for limited companies)

Think ahead to avoid delays when setting up your UK bank account. For example, if your business uses a specific bank, check if they operate in the UK to speed up the process.

Cards

One way to streamline your business payments is to use virtual payment cards. Virtual payment cards are debit or credit cards that facilitate online transactions.

These cards are generated entirely online and accepted almost anywhere that traditional Visas and Mastercards are accepted. With virtual payment cards, you can designate spending limits as well as choose certain currencies to pay for things internationally, hassle-free.

Virtual payment cards from Airwallex also have zero international transaction fees.

Value-added tax (VAT)

Don’t forget about value-added tax (VAT).

VAT applies to most goods and services bought and sold for use in the EU, and is charged as a percentage of the price. It’s collected from businesses via partial payments and paid to revenue authorities.

VAT is a type of tax that doesn’t exist in the US, so familiarizing yourself with its process before you expand is crucial.

Inventory and shipping management

When it comes to listing and managing your inventory, you should aim to automate as much as you can. This will help you stay organized and generally keep track of your inventory to know what’s selling and what’s not.

Additionally, automated processes will quickly fulfill your inventory on multiple eCommerce sites by creating lists, cataloging on numerous platforms, syncing inventory, and fulfilling FBA orders.

Contact Airwallex to assist your overseas expansion

Expanding your business to the UK isn’t hard if you take the proper steps — and Kickfurther is here to help. We’ll get you on your way with reliable, consistent funding and help you sustain your success as you grow.

For further help with your expansion, check out our partner Airwallex. They offer Global Business Accounts in multiple currencies, so you can spend less on foreign transaction fees and more on your business growth.

Fill out our inquiry form and one of our specialists will get back to you on your funding potential!

Featured image via Pixabay

Inventory Turnover Ratio: How to Calculate It

Posted on May 10, 2022 by Amanda Levine

What is the inventory turnover ratio? In summary, an inventory turnover ratio is a figure that calculates how quickly you’ll sell through your inventory during a specific timeframe. This calculation is essential for all businesses because it measures how efficiently a company is using its assets.

In other words, it shows how often a company sells or uses its products or inventory.

So what is a good inventory turnover ratio and how do you calculate inventory turnover ratio?

Keep reading to learn more!

What is an inventory turnover ratio?

Inventory turnover ratio is a figure that calculates how quickly you’ll sell through your inventory during a specific timeframe.

If you have a high inventory turnover rate, that indicates that you are selling your products quickly and efficiently. If it’s low, that means you’re overstocked or that sales are down.

You might hear other terms used for inventory turnover ratio, including stock turnover, stock turn, and inventory turns.

How an inventory turnover ratio is calculated

There is a simple formula you can use to calculate inventory ratio. It includes timeframe (such as a year), average inventory (the dollar value of the beginning inventory plus the ending inventory, divided by two), and the cost of goods sold (which is the final number on your annual income statement).

Why knowing your inventory turnover ratio is important

There are a few reasons why you should prioritize your inventory turnover ratio. Let’s take a closer look at two reasons.

Boost profitability

Having an idea of your inventory turnover ratio can increase your profitability. You’re increasing your product turn-around by reducing your storage costs, which increases your net income and boosts your overall profitability. Plus, when inventory turns quickly, that increases your responsiveness to customer demands.

Measure business performance and efficiency

An accurate inventory turnover measurement can help you measure how efficient and high-performing your business is. The higher the inventory turnover, the better performance. You’re not buying too much and you’re getting rid of the inventory you do buy.

Formula to calculate inventory turnover

Want to know how to calculate inventory turnover ratio? As mentioned earlier, you’ll need to know the period of time, usually a year, the average inventory, and the cost of goods sold.

Once you have those variables, you can use the formula to calculate your inventory turnover rate.

The formula is:

Cost of goods sold/average inventory = inventory turnover rate

Inventory turnover ratio example

Say you own a sporting goods store and you’re trying to figure out the turnover rate for one of your best selling products. If your cost of goods is $10,000 and your starting inventory is $3,000 with an ending inventory is $1,000, your average inventory is $1,000 (since it’s $3,000-$1,000 divided by two).

When you plug those numbers into the formula, you get a turnover rate of 10. You turned your inventory for that product ten times throughout the year. With that number in hand, you can average out how many days it will take you to sell through your inventory once. To do this, take 365 days (the number in a year) and divide it by 10, or your inventory turnover rate.

That should result in 36.5 days, meaning it takes an average of 36.5 days to sell through your inventory. This number will give you an idea of how much stock you need in the future.

What causes inventory turnover ratios to vary significantly?

There are some limitations of inventory turnover ratios. For instance, it won’t give you the best insights as to how your business is performing if you’re not accounting for things like discounts, special campaigns, and markup.

There are other factors that cause variation in inventory turnover ratios, too. For example, turnover rates tend to increase during the introduction and growth phase of a product, then peak as a product matures. As the market becomes more saturated, there are improvements to existing technologies, or customer preferences change over time, these can all cause inventory turnover to fluctuate or vary.

What is considered a good inventory turnover ratio?

While what’s considered a good inventory turnover ratio will differ between industries, since the ideal ratio depends on what you sell and your specific industry, the higher your turnover rate is, the better. Shoot for an ideal turnover ratio between 5 and 10.

A high inventory turnover rate indicates that sales are strong but it can also indicate that your inventory is too low. It’s a tricky balance to follow. If your inventory turnover rate is too low, though, it is either because you’re overstocked or sales are weak (both of which are things you should be trying to avoid).

Tips to improve your inventory turnover ratio

Once you know your inventory turnover ratio, there are simple steps you can take to improve it for your business.

Review purchase prices on regular basis

If you’ve had the same prices for many years and you’re concerned about your inventory turnover ratio, one of the easiest things you can do is adjust your prices. Compare them with similar products and businesses in your industry. If other companies are asking for prices that are much higher or lower than yours, it’s time to revamp your pricing.

Increase inventory demand

One easy way to increase your inventory demand? Change up your marketing strategy. Make sure your campaign is targeted toward your ideal customers. It should be clear that you have a product to solve their problems – get people excited about what you’re selling so there’s a higher demand for the inventory you have!

Choose best selling products

Don’t keep products on the shelves that just aren’t selling. If the items you have in your store have a high turnover rate, that’s great – but if they don’t, get rid of them.

Another simple strategy for increasing your inventory turnover is to group similar items together. You can then compare how well they do on the shelves so that you can recognize trends and be able to project how much you need to order in the future.

How Kickfurther can help

Applying some of these inventory management basics should help you keep your stock under control, ensuring that you always have what your customers need on hand.

Kickfurther is the world’s first online inventory financing platform that enables companies to access funds that they are unable to acquire through traditional sources. In just an hour, you can get the fund you need to purchase inventory. Drilling down on just how much inventory you need to stock is an important step to take before connecting to our community of backers. Our backers will want to know a little bit about your company and see revenue between $150k to $15mm over the last 12 months. To get started, simply create a profile at Kickfurther to connect with backers. Kickfurther is up to 30% lower cost than other options and allows you the freedom to repay only when you start making sales. You’ll get to outline your expected sales periods for customized payment terms.

Interested in getting funded on Kickfurther? Create a free business account online today to get started.

Inventory Management 101: 5 Tips for Small Business Owners

Posted on May 10, 2022January 27, 2025 by Amanda Levine

Owning a small business is no easy task. There’s a lot to keep track of between marketing your business, dealing with customers, and handling finances.

One important aspect of running a small business is inventory management. By executing effective inventory management techniques, you’ll be able to keep your business running smoothly and ensure that you always have the products your customers need.

What is inventory management?

Inventory management is the part of supply chain management that makes it possible for you to have the exact products you need in the right amounts for sale – and at the right time.

When inventory management is done correctly, it can reduce your overall costs and overhead by having to keep a lot of excess inventory in stock. You’ll know exactly what your customers want, you can have it when you need it and maximize your sales. The best inventory management will make it possible for you to track inventory in real time. The process will be 100% streamlined.

Why inventory management is important for small business owners

Here are a few benefits of inventory management for small business owners.

Reduces costs

The most obvious benefit of good inventory management is that it can help you reduce your costs. Sure, with larger orders you can negotiate better payment terms or shipping rates, but it’s important to remember that the cost of purchasing the stock itself isn’t the only expense involved in maintaining an inventory. The more inventory you have, the more space you need to hold it.

Therefore, effective inventory management will give you a better idea of what you actually need – allowing you to reduce costs while also freeing up space.

Frees up cash

Inventory management also frees up cash. If you buy smaller quantities of your products more often, you’ll have more cash on hand rather than tying it up in stock. This is vital for small businesses that are dealing with a more unpredictable or fluctuating cash flow.

Improves customer satisfaction

Finally, inventory management can improve customer satisfaction. It’s frustrating for customers to find out that an item they need or want is out of stock. You might not only lose the sale, if that’s the case, but also the customer for life. You’ve left a bad taste in their mouth!

What do small business owners use for inventory management?

There’s no one-size-fits-all solution when it comes to inventory management. However, popular software tools include Brightpearl, Zoho Inventory, and Veeqo.

You can always manage your inventory manually, without any kind of tech, if you’re on a budget. Tools include things like ledger books, spreadsheets, and stock cards. However, paying for inventory management software is actually a good way to save money since it will streamline your processes.

Tips to effectively manage your inventory for small business

Follow these tips for effective small business inventory management.

Use Inventory management software

Inventory management software is integral to small business owners. You might think your business is too small to need inventory management software – but this is a common misconception. This kind of software is vital regardless of the size of your business.

It can help you keep track of all of your inventory in real time, something that can reduce your costs and improve your cash flow (read – a healthier bottom line). You can predict demand and prevent shortages while also preventing having too much stock on hand. It allows for multi location management and the best warehouse organization. Most importantly, a good inventory management software will help you save time and money.

Accurate forecasting

Do your best to fine-tune your forecasting. Your projected sales calculations should be based on a variety of factors (and these should be as precise as possible) such as your historical sales figures, predicted growth, the economy, market trends, marketing efforts, and so on.

FIFO approach

Consider using the FIFO approach to inventory management. It’s kind of like the concept of rotating old milk to the front of your refrigerator and putting the new milk in the back so you use up the old stuff first!

Good inventory management will require you to sell goods in the same chronological order as the ones they were made or purchased in. It’s especially important for perishable products but it’s also a good idea for non perishable items. The longer an item sits, the more likely it is that it will become damaged or otherwise unfit for sale.

Audit your stock

Take the time to audit your stock. Count your inventory to make sure what you have actually matches your numbers of what you think you have. Yes, this needs to be done from time to time even if you have quality inventory management software!

Quality control

No matter what kind of industry you work in, make sure all of your products look fantastic and work well. This can be done at the same time as when your employees audit the stock. You might use checklists that include boxes for signs of damage and even tips for correct product labeling.

Tips of small business retailers

As a small business owner, do your best to understand your stock, including what you have, when you have it, and who is buying it (and of course, how much). A thorough understanding of your sales trends is key to give you the insights you need to make sure you have the right kind of inventory.

Next, make sure you have the inventory management system for small business owners in place to handle those insights. Use an all-in-one retail management system that combines inventory management with sales and ordering systems so you can monitor stock levels in real-time and place orders as soon as possible.

Tips for small business product manufacturers

And if you make your own products? Some businesses are responsible for the entire supply chain, like a producer and retailer of handmade purses. You source your own raw materials and then turn them into items to sell.

Therefore, your inventory will consist of those raw materials, the work-in-progress pieces, and the finished products. You’ll want to have a clear idea of each of these categories at all times. The tips above can help!

How Kickfurther can help

Have you ever struggled with inventory management? You’re not alone. Inventory is one of the biggest challenges facing small businesses today. But don’t worry, we’ve got your back. Check out our top tips for how to manage small business inventory above to see how you can apply them to your own business.

With Kickfurther you can fund millions of dollars worth of inventory at costs of up to 30% lower than the competition. You’ll have the money you need to pay your suppliers without having to create a purchase order or accounts receivable. With more than $100 million in inventory funded to date, Kickfurther is the world’s first online inventory financing platform that enables companies to access funds that they are unable to acquire through traditional sources.

Interested in getting funded on Kickfurther? Create a free business account online today to get started.