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5 Ways and Steps to Improve Your E-Commerce Business Through FINANCING

Since predicted, E-commerce has boomed (and is still booming). People buy not just through PCs but through phones together with tablets as well. Buyers loved the idea! E-commerce's market and competition is huge, now how do you keep up and progress? The word is "empathy"-put yourself in your customers' shoes! Your goods are wonderful, your target market is all consumer credit classes yet your customers are just coming from the mid to upper scales. Say you sell apparel-everyone needs clothing. Occur, you don't want to be deprived of clothing purchases just because you do not have a credit card or have a low credit limit, do you? NOT ABSOLUTELY EVERYONE HAS/CAN HAVE A CREDIT CARD. That's where financing comes in. I know, you've heard about it. House, auto, cash, etc . -e-commerce financing is different. How do you benefit from it? Not everyone can get a credit card. However , not everyone who owns credit cards pay their own credit cards. How do you help the minimum waged guy who's got a job, good payment records and a guarantor? Convenient! #1 Forget you are JUST helping the guy -Look, the guy helps you and your business in return! If you supply a financing payment method for an eBay or Amazon product (which cannot be purchased easily without credit cards), the user gets a big chunk of the market-those without credit cards. # 2 Know the types of e-commerce financing -Financing is creating a product affordable for your customers while earning yourself MORE SALES at HIGHER VALUES. There are two ways you can business in e-commerce financing: A. Plain Financing - You just find the leads, verify their payment capabilities, and financial no particular product-anything goes. B. Retail Financing - You have particular stuff/service to sell and you offer financing for a payment method. #3 Know your clientele -Now, there are three general categories: (1) Those who've got 680-850 credit scores with high credit limits (not your financing target); (2) Those with 600-680 scores, typically with $600-limited credit cards or GE capital (the perfect targets! ); and, (3) Those with 300-599 scores, NO credit card (great for lay away programs*) #4 Know your risks as a financier -Financing wouldn't be around if it isn't really profitable. However , as in any business venture, there are risks you would have to deal with. One of which (but rarely happens) is each time a customer screws you upon shipping the product-like, they get it and don't pay you or get it and pick a return/exchange. Worry not since you can... click here livetheorangelife #5 Secure Yourself & Your Business-Issue in #4: What if a customer anchoring screws you? That is exactly why you charge double or triple the worth of the product you finance-to fill in these gaps expenses. That is not the only way, however , to secure your financing business (whether plain or retail). As a site visitor shows his interest in being financed, he fills out a form for your evaluation and signs an electronic (since we could talking e-commerce here)/ e-signing agreement that states your 'financing terms & conditions' such as his paying for that restocking fee, etc . Now, there you have it: the basic steps to your e-commerce financing success. Also note that you do not have to use money from your own pocket to start financing. You can have your financing financed by banks and "middle men" a. k. a. financing firms (whom you'd be liable to) depending on your business situation (number of a long time, operating costs, turnovers, etc . ).

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Venture Leasing - How to Get Financing For Custom-Made Equipment

Tiffany Charles, CFO of Medtech Solutions, was facing a difficult challenge. Medtech, a venture-backed startup in business for two a long time, needed test equipment critical to its operations. While test equipment is widely available for most test applications, this tests to be conducted at Medtech required custom-made equipment offered by only one US manufacturer. Medtech had raised satisfactory venture capital to fund most of its research and development projects, but the custom-made equipment's cost would require an unacceptably large percentage of Medtech's research budget, limiting investments in other key areas. Tiffany explored manufacturer higher education and contacted several leasing firms, but to no avail. How would Tiffany acquire the equipment that Medtech needed without using internal funds critical for other projects? Why custom-equipment financing is so difficult to obtain Potential financing solutions approach requests for this type financing cautiously. Most financing for venture-backed startups involves a high degree of risk when compared to financing established companies. Financing sources that extend credit to venture-backed startups are accustomed to accepting startup dangers. These risks include financing companies that are relatively new to their markets, that have negative cash flow, and that rely on growth capital sponsorship to stay afloat. Notwithstanding these risks, most financing sources are reluctant to take on the added risk with financing equipment that they may be required to re-market one day, but are unable to move. Many of them know that a small percentage of the transactions people underwrite will not work out, requiring them to repossess and re-marketing the equipment to recover as much of their investment as possible. Custom-equipment provides a huge challenge in that it offers virtually no backstop should all other exit channels fail. Whether or not a venture-backed startup can purchase financing for custom-equipment might depend on several factors: The dollar amount and percentage that the equipment represents in the total to be financed Whether other assets can be offered as collateral to secure the transaction The startup's overall credit profile Whether management can convince the financing company that the equipment is critical to operations and/or profitability Whether an aftermarket exists and whether there is any prospect of realizing value from the equipment when re-marketing is necessary Whether the vendor offers equipment buy-back, trade-in, or re-marketing support, if desired. How do savvy startups overcome this financing challenge? To improve the odds of obtaining financing, startups should take the following steps: Stick with capital firms that specialize in financing venture-backed startups. These companies understand venture risks and are in a better position to evaluate sales involving custom-equipment. Research the after-market for the equipment by talking to the vendor and looking for used equipment brokers/dealers internet. Often , the vendor can provide resale information and used equipment resellers can be spotted online via advertisements and lists. Make sure you provide your re-marketing research to the financing firm. Explore re-marketing assistance with the vendor, including equipment buy-backs, trade-ins, or other vendor re-marketing arrangements. Depending on the vendor, customers may be able to lobby for special re-marketing arrangements as a get incentive. Consider other assets that the startup might pledge to support the transaction. The main concern of the financing origin is being able to exit the transaction should the startup default in making payments. By offering additional collateral to support your transaction, the startup may be able to alleviate or greatly reduce this concern. Try to schedule custom-equipment purchases along with other equipment that's an established aftermarket, such that the custom-equipment represents a minority of the equipment being acquired. Similar to offering additional accessories as collateral, by bundling custom-equipment with readily re-marketable equipment, the overall collateral value of the bundle might be adequate to calm the financing provider's concerns. Highlight the critical nature of the equipment. If it is critical to the startup's profitability or operations and loss of the equipment's use would put the startup in a significantly weaker job, the prospect of obtaining financing is somewhat improved. The rationale is that the financing source will have a relative advantage vis-à-vis other creditors in any company wind-down because the equipment might be needed to restructure the company or to assist other creditors on their recovery. While this is not a primary reason for financing custom-made equipment, it is a factor considered by most financing resources in making a final decision. If your startup needs financing for custom-made equipment, use these tips and insights to traverse your search.