E-commerce businesses are flourishing. Funding growth isn’t always easy.

Here are three ecommerce financing options that you should consider to expand your business.

Term Loans

Term loans are generally short-term loans, from 1 to 10 years, that offer flexibility for ecommerce businesses. Funding can be much quicker than traditional loans, but you should be watch for unreasonable interest rates. You’ll need a solid business plan. Most lenders want you to have some history of operations, so this type of loan isn’t for every business.

Merchant Cash Advance

If you have a steady flow of credit and debit card sales, a merchant cash advance might work in your situation. With this type of funding, you borrow against your future sales. You can get $5,000 up to $500,000 in a short time from the lender. You pay the loan back through a percentage of your sales, which gives you flexibility against a fickle market. Of course, you’ll pay a fee to the lender. But if you’re relatively new in the business, this can be a good option.

Accounts Receivable Financing

Also called factoring, accounts receivable financing is a quick loan that doesn’t go on your credit report. You’re selling an asset, not really taking out a loan. You can generally get up to 90 percent of the value of your invoices in as little as 24 hours. It’s a short-term loan that can have significant fees, but it can certainly fill a void if needed.

Before taking out a loan for your business, you’ll want to weigh the pros and cons of each type of ecommerce financing. Make sure that the long-term benefits are worth the costs. Talk to your lender about other options you may have. Mossberg Strategic Capital has financing options that can fund your business growth. Ask us for more information.