What is revenue-based financing and how does it work for online stores?
Revenue-based financing providers connect to your eCommerce platform (Shopify, Stripe, PayPal, etc.) and offer capital based on your monthly sales volume. Repayment is a fixed percentage of your daily or weekly revenue — 5–15% of gross sales — until the advance plus fee is repaid. During slow periods, you pay less. During peak sales, you pay more. This aligns repayment with your actual business cycle.
Can I get funding specifically for Facebook or Google ad spend?
Yes. Ad spend financing is a niche product offered by some eCommerce-specialized lenders (Clearco has pioneered this model). Capital is provided for digital advertising campaigns with repayment tied to the revenue those campaigns generate. This model is particularly effective for brands with predictable ROAS (Return on Ad Spend) — if you reliably generate $3 in revenue for every $1 in ad spend, the advance essentially pays for itself.
What's the minimum monthly revenue to qualify for eCommerce funding?
Most eCommerce-specific lenders require $5,000–$10,000 in monthly gross revenue. General working capital programs require $15,000–$20,000+ in bank deposits. Revenue-based financing programs from platforms like Shopify Capital or Clearco are accessible from lower revenue levels ($5,000/month+).
Can a dropshipping business get funded?
Dropshipping businesses qualify for working capital if they have consistent gross revenue and deposits. Inventory financing is not available (there is no inventory to use as collateral), but MCA and working capital loans based on bank deposits are accessible to dropshippers with 3+ months of consistent revenue.
Can I get funding to launch a new product on my eCommerce store?
Yes. New product development, photography, listing creation, initial paid media test budget, and first inventory run are all eligible uses of working capital for established eCommerce businesses. Newer businesses (under 3 months) should look at startup-focused programs.
What credit score do I need to get funded as a eCommerce business?
Programs start at 500 FICO. Scores of 620+ access the most competitive rates. Strong average monthly deposits can offset lower credit scores for smaller advance amounts.
How fast can a eCommerce business get funded?
Qualified businesses typically receive same-day to 72-hour ACH deposits for working capital. Equipment financing closes in 2–7 business days with a vendor quote.
Can a eCommerce business with existing loans get additional funding?
Often yes. We evaluate net cash flow after existing debt service. Existing positions are a factor but not an automatic disqualifier for businesses with strong revenue.
Do you require collateral for working capital?
No. Our working capital programs are unsecured — we do not require real estate, equipment, or personal asset pledges. A personal guarantee is standard for most programs.
Can a startup or newer business get funded?
Businesses under 6 months old have limited options. At 6+ months with consistent deposits, most programs are accessible. Equipment financing is available from day one with a down payment.