What do you think to ecommerce loans?

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Herts, England United Kingdom
Andy
Kudos: 11,661
Joined: Jan 1, 2001
What do you think to ecommerce loans?
10 Jul 2015
Have you used one of the ecommerce loans companies? If not, would you ever use one?

Kabbage is the best known in the US, and iwoca or ezbob in the UK. There also PayPal and Amazon's own financing options.

What do you think to them? Useful alternative sources of finance, or little better than payday loan companies?
Andy Geldman, Web Retailer
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Sheffield United Kingdom
John Mounsey
Kudos: 86
Joined: Apr 10, 2015
Re: What do you think to ecommerce loans?
10 Jul 2015

Andy wrote:

Have you used one of the ecommerce loans companies? If not, would you ever use one?

Kabbage is the best known in the US, and iwoca or ezbob in the UK. There also PayPal and Amazon's own financing options.

What do you think to them? Useful alternative sources of finance, or little better than payday loan companies?
No personal experiences of these myself... but it sounds like something to avoid I would say.

I *did* have some peripheral (and positive) experiences with "Funding Circle" some years ago - but unsure if that / they are still operating..?

John.
United States United States
tall-corn
Kudos: 108
Joined: Dec 13, 2012
Re: What do you think to ecommerce loans?
10 Jul 2015
I have doubled my business every year for the last two years, and have used Amazon, and Kabage. My last loan was for $96,000

scott@vmtw.com
www.vmtw.com
Tucson, Arizona United States
thewildpetunia
Kudos: 46
Joined: Apr 21, 2015
Re: What do you think to ecommerce loans?
10 Jul 2015
I think they can be a great help, but must be used with extreme caution. I got a PayPal Working Capital loan and it was simple to get and pay back quickly. Just make sure your business will be able to pay it back. If you're not careful these loans may cost you your business!
Midlothian, VA United States
Jax Music Supply
Kudos: 2,387
Joined: May 25, 2009
Re: What do you think to ecommerce loans?
10 Jul 2015
I have used Kabbage extensively, PayPal Working Capital, and Amazon loans. All are great. The best part is the ease of use and quick approval. It gives a great advantage in buying inventory - especially when you have a super discount or other item for volume sales. You do have to watch your cash flow, especially with Kabbage, as you need to pay them on a monthly basis. Paypal and Amazon just take it out of your earnings, which is very convenient. The fees are a bit high relative to a traditional bank but, in my opinion. this is not a big deal, especially when you consider the time involved.

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