Best Loans for Online Businesses, Ebay, Amazon and Shopify Ecommerce

As an online retailer, eBay or Amazon seller, or Shopify e-commerce store owner you know that making e-commerce sales takes money to buy inventory, advertise online, hire employees, and pay for website developers. Most web stores have gaps in their cash flow, between their business expenses and retail store sales, which could be helped by a retail loan or business line of credit for working capital.

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RELATED: Read my Kabbage Loan Reviews – Right for your Business?

I recommend Kabbage as the best loans for online stores, eBay sellers, Amazon and Shopify sites because of its positive combination of ease of application, the speed of funding and generous approval criteria. Kabbage understands that your business financial health is more than just a number on your credit score report, so it uses your actual business data, such as sales receipts, credit card transactions, and invoice payments, to review your eligibility for a retail loan. 

Purchase additional inventory during your busy season with a loan from Kabbage. Visit us now at

Are Kabbage Retail Loans are Right, or Wrong for Your Online Business?

Right for Retailers:

  • The online business is open for one year or longer
  • Have annual revenues of $50,000 or more – or $4,200 for the last 3 months
  • Use online payment processors, POS and accounting systems  
  • Owner has less than perfect personal credit score
  • Need cash fast and don’t want to wait for long approval time
  • Don’t want to hassle with preparing lots of paperwork for the application
  • Been rejected and turned down by traditional banks and lenders


Wrong for Retailers:

  • Startup launches of new online stores and sites – instead check out this chart of financing options
  • Revenues under $50,000 annually
  • Don’t use online accessible credit card processors nor accounting software
  • Need longer repayment periods of over 6-12 months


Purchase additional inventory during your busy season with a loan from Kabbage. Visit us now at

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Advantages of Kabbage Loans for Online Sellers and E-commerce Stores


Easy Online Application = No hassle time-saver

In under 6 minutes, even from your mobile phone during your coffee break, you can apply for a retail loan from Kabbage. Because it is so easy you will actually get it done – instead of procrastinating forever (like me 🙂 because typical bank loan applications are such a hassle to fill out all the paperwork and find all your old bank statements.


Quick Approvals = No waiting or worrying

Because Kabbage uses computers to analyze your business data from your bank accounts, credit card processor, and accounting software, you can get approved almost instantly or at the longest in a day. I hated to wait, sometimes for weeks, and worry, when I applied for business loans in the past. Only to then be embarrassed and bummed out when I got a call from the bank rejecting my loan.  It is so much better to know right away if my retail financing will be approved so I can proceed with my business plans.

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Fast Funding = Get going with projects and payments

Once you are approved the money will be available for our business use often within hours, by using your Paypal account (which you are not charged any fees), or a few days if you opt for bank checking account transfer.  Also, you can get a credit card, called the Kabbage Card, which allows you to access our line of credit by using the card for purchases. Other ways to access these funds is by mobile phone app, desktop dashboard and within your accounting software (Intuit Quickbooks, Xero, Sage, and others)


Unrestricted Use of Funds = Ability to use Money ANY Business Expense

Because Kabbage gives you total flexibility to use the funds for any business-related expense you can manage your business the way you see fit – using the money to build your business. There are no restrictions prohibiting you spending the cash on rent, payroll, supplies, equipment, advertising, website development or events.  You know your business best and where it needs cash to make the most impact on business growth and profitability.


Renewable Source of Retail Financing = Continuous Access to Working Capital

As you borrow and then pay back money from your Kabbage retail loan, your line of credit renews to allow for future borrowing for working capital needs. This is a great way to continue your store’s growth by strategically using this money source for business-building activities.

Purchase additional inventory during your busy season with a loan from Kabbage. Visit us now at


Auto Repayment = No missed payments or late fees

I like how easy Kabbage makes loan repayments. They do an auto debit to your business checking account for your regular loan payment for the exact correct amount on the due date. You will receive an email, in plenty of time, prior to this day, of the amount of the payment and date of debit. This process avoids incurring late fees, which can add up, and ensure that your payments are made on time. Thus you will not jeopardize your line of credit good standing and keep it open for your future business financing needs.

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Higher Interest Rates = Larger Cost of Capital

Because you, as a small business with less than perfect credit, are a riskier loan than other types of business loans, that are secured with collateral such as real estate and machinery, your interest rates will be higher.  Kabbage APR (annual percentage rate) varies from a low of 1.5 -10% which increases based on your time in business, revenue, profit margin, and velocity of growth, ie your business performance factors.

When reviewing your options for retail financing it is wise to use the ROI (return on investment) evaluation system.


Right Way to Evaluate Short Term Business Loans: ROI – Return on Investment.

This is a financial calculation that focuses on the “value” of the loan money to your business and your ability to make money with the loan money.

In fact, Kabbage provides an ROI loan calculator which you can use to determine exactly how much “value” and return you will get on your loan.

Here’s an example:

  • Cost of Equipment – Five (5) Hair styling stations @$3,000 per = $15,000
  • Estimated monthly revenue from new equipment = $ 5,000
  • Estimated years in service = 5 years
  • Loan Term = 12 months
  • Fee Rate = 4.0%
  • Total Investment = $19,500

TOTAL REVENUE = $300,000 (Number of units X sale price per unit = Revenue)

  • INVESTMENT – $19,500

ROI – Return on Investment = $280,500 – 1438% 

Doesn’t that make more sense – seeing how the money from your Kabbage loan will build your business instead of just comparing numbers of loans (most which you will be denied)

Screenshot of ROI Loan Calculator

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Options for Financing Online Retail Businesses


Types of Business Loans & Financing

Loans for financing, working capital, equipment leasing or purchasing, payroll, rent, and marketing advertising.
Types of LoansBest For FinancingRight or Wrong For You?Advantages and Disadvantages Do you Qualify?
Working Capital - Lines of CreditFunding short term needs such as supplies, marketing, payroll, rent
Expansions such as equipment purchase or lease, new locations.
RIGHT FOR: Businesses operational for one year or more, owner with low credit score OK

WRONG: Startups and new businesses opened under one year (see below option for startups)
ADVANTAGES: Fast and easy application and funding, revolving line of credit to pay down and reuse continuously

DISADVANTAGES: Slightly higher interest rates than traditional banks, however most banks won't approve small business loans anyway 🙁
Startup and Expansion LoansStarting a new company, buying an existing business, expanding, new locations or purchasing a franchiseRIGHT FOR: People with 401K - IRA retirement accounts of over $50,000

WRONG FOR: Businesses needing working capital with no expansion plans
ADVANTAGES: Access to startup capital with no repayments, no tax penalties and no interest rates. Improved business success rate due to no drain on early profits with monthly repayments.

DISADVANTAGES: Reduces retirement savings of individual


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Hi - I am a serial entrepreneur, after doing "time" in corporate America, who has learned about what products and services work well for entrepreneurs who want to start a business. You can learn from my experience and my associates as we shop from the internet for tools, supplies, and information to build our businesses and improve the lives of our family and ourselves. Read more ...

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