Live market data
Pulled from official U.S. government APIs. Click a card to view the source.
TL;DR
E-commerce businesses need inventory-focused capital: working capital loans for restocks, lines of credit for ad spend, and revenue-based financing tied to monthly sales. Sellers often qualify with $35K+ monthly bank deposits, but funds must flow through a business bank account — not a Stripe, Shopify, or PayPal balance.
The fintech-balance problem
Most e-commerce sellers run revenue through Stripe, Shopify Payments, or PayPal — and that disqualifies them from most working capital lenders unless that money sweeps to a business bank or credit union account. We require deposits to land in a business bank account before underwriting.
Top financing options for online sellers
- •Working capital loan — best for inventory restocks, fixed term, $5K–$1M
- •Line of credit — best for variable ad spend and seasonality
- •MCA — fastest but most expensive; useful for emergency restocks before a big drop
- •Invoice factoring — for B2B sellers with net-30/60 receivables (wholesale, dropship)
Why we're often cheaper than Shopify Capital and Amazon Lending
- •Shopify Capital factor rates frequently exceed 1.20 on 6-month repayment
- •Amazon Lending caps at fixed multiples and can't be used outside Amazon
- •Our working capital and term loans run 8.99–24% APR for qualified sellers — typically 30–50% cheaper
Common mistakes e-commerce owners make
- •Accepting the first Shopify Capital offer without comparing
- •Running 100% of revenue through PayPal without sweeping to a business bank
- •Using working capital for a year-long inventory hold (term loan is cheaper)
- •Stacking platform-specific lending offers across Shopify, Amazon, PayPal simultaneously
Run the numbers
MCA / Factor Rate Calculator
Convert a factor rate offer to total cost, daily remit, and approximate APR. Useful for comparing MCA offers against term loan APRs.
Methodology
Total payback = principal × factor. APR-equivalent ≈ (factor − 1) × (365 / term days). This is an approximation — true APR is slightly higher because daily remittances reduce balance over time. APR is defined per the federal Truth in Lending Act (12 CFR § 1026, Regulation Z). MCAs are typically structured as a purchase of receivables and not subject to TILA APR disclosure, but several states (CA SB 1235, NY S5470) require commercial financing disclosures with an APR-equivalent.
Business Term Loan Calculator
Standard amortization: fixed APR, fixed weekly payment. Same formula banks and SBA lenders use.
Methodology
Standard amortization formula: P × r / (1 − (1 + r)−n), where r is the monthly rate (APR / 12) and n is the term in months. APR is the annual percentage rate as defined in the federal Truth in Lending Act (12 CFR § 1026.22). Actual lender quotes may include origination fees that increase APR.
Compare Two Offers (APR-equivalent)
Paste any two offers — MCA, term loan, line of credit — and normalize them to the same yardstick.
Lowest APR-equivalent wins on cost. Cents-on-the-dollar (CoD) shows total cost per dollar borrowed regardless of term length.
Related questions
Often yes — Shopify Capital factor rates frequently exceed 1.20 on short terms. Our working capital loans (8.99–24% APR) and lines of credit are usually cheaper for $50K+ amounts.
Related guides
Best Business Loans for Retail Stores in 1970
Inventory financing, working capital lines, and MCAs for retail — including how to handle Q4 seasonality and slow-summer cash gaps.
Best Business Loans for SaaS & Tech Companies in 1970
Revenue-based financing, lines of credit, and term loans for SaaS, agencies, and tech consultancies — and why traditional bank loans rarely fit.
Business Loan Rates Explained (1970)
APR, factor rate, and total cost of capital — what the numbers actually mean and how to compare offers across products.
Sources & references
- Current Employment Statistics (CES)— U.S. Bureau of Labor Statistics
- County Business Patterns— U.S. Census Bureau
- SBA 7(a) and 504 Loan Program data— U.S. Small Business Administration
- Bank Prime Loan Rate (DPRIME)— FRED · Federal Reserve Bank of St. Louis
- Small Business Credit Survey— Federal Reserve Banks