With the beginning of tax season kicking off, many ecommerce businesses will be gathering their paperwork to best prepare for the upcoming filing. As ecommerce businesses prepare to pay a federal tax rate of up to 21% for resident corporations in the U.S., tax season can pose a significant financial burden by facing large tax bills that disrupt cash flow. Many ecommerce brands may struggle to pay off these lump sums without compromising their growth and investment agility for other business needs such as inventory, marketing, and operations with the upcoming peak season. To stay financially flexible, Clearco can fund your tax receipts, allowing ecommerce businesses some reprieve from the financial hurdles, and maintaining their ability to scale.

Tax Bills Put a Strain on Ecommerce Brands

As businesses prepare their tax returns for 2024, the associated costs can quickly add up. Ecommerce businesses must manage various tax obligations, including sales tax, income tax, self-employment tax,  sales tax, and quarterly estimated taxes, depending on their businesses’ specific requirements. Altogether, these taxes can lead to a substantial tax liability. If not accurately accounted for and paid throughout the year, businesses may face a significant outstanding tax bill owed to the relevant tax authority, such as the Internal Revenue Service (IRS) under the U.S. Department of the Treasury.

To pay off existing tax bills, businesses can make payments to the tax authority through their bank accounts, credit, debit or through their digital wallets. However, paying for a large lump sum such as a tax bill can be an unexpected cost ecommerce brands may not have enough reserves squared away for. With the slow sales slump of January winding down, many businesses are just beginning to see sales pick up again after consumers’ post-holiday spending freeze. In January 2025 alone, consumer spending dropped by 0.2%—the first decline in almost two years. As a result, businesses are still working to regain steady footing and maintain a healthy cash flow.

In cases like these, brands may find themselves hindering their growth by limiting their spending reinvesting in their business such as expanding inventory, launching marketing campaigns, or scaling operation strategies. Pulling back on promotional and growth tactics, coupled with a large tax bill payment can substantially impact the businesses’ ability to prepare for the upcoming peak summer season. A 2025 Small Business Taxation Survey by the National Small Business Association (NSBA) found that 36% of small businesses reported the financial cost of federal taxes to be the largest burden posed to their business. Income tied up in federal tax payments can leave ecommerce brands in a stagnant position, slowing their growth and adding financial strain. However, fast funding partners can help free up this cash flow, allowing these businesses to stay on track with their fast-scaling trajectory.

How to Fund Your Tax Receipt with Clearco’s Receipt Funding

For businesses looking to maintain their growth this tax season, Clearco is offering funding for tax-related expenses through receipt submissions. As your business submits your tax receipts from the designated tax authority, Clearco will provide the funding. The steps to do so are easy:

• Sign up or log in to your Clearco account
• Complete any necessary profile information
• Upload your tax records to Clearco’s portal
• Get your tax receipt funded by Clearco’s receipt funding in as little as 24 hours

As a proof of payment for your tax receipt, Clearco accepts tax records or transcripts from your online IRS account, showing your businesses’ payment history. Ecommerce brands can also provide proof of payment of your tax bill from your bank account, or a  bank statement as well as your tax bill indicating the owed amount in taxes. Corporations filing a Form 1120 with the IRS can also upload this document to verify the tax bill amount with your bank statement for proof of payment.

Why Ecommerce Brands Should Leverage Funding for Taxes

Managing tax payments can put a strain on cash flow, but leveraging funding can help businesses stay financially agile while continuing to invest in growth. There’s no longer a need for ecommerce brands to feel the stress of looming payments on top of their existing operational costs.

The rise in popularity of ecommerce spending has seen a jump to a startling 67.9% from February 2020 to July 2022 alone and the market has rapidly been expanding. It’s clear that this shift in digital shopping is here to stay, and with the market evolving, it’s no surprise the taxman is stepping in to take their cut. The ecommerce sector has seen significant increases in sales taxes and tax laws to capture some of this revenue. With these new tax laws, such as the South Dakota v. Wayfair ruling, indicating that ecommerce sellers no longer have to have a physical presence in a taxing state to be required to collect and remit sales tax to the designated state, businesses now face the challenge of navigating complex tax regulations across multiple jurisdictions, significantly impacting their cash flow. This has added an extra layer of complexity to tax compliance and tightened financial flexibility, making it even more crucial for businesses to have the necessary cash flow to cover these obligations.

Without proper funding, these increasing tax liabilities can quickly drain a businesses’ resources that could otherwise be used for inventory expansion, marketing efforts, or other growth upgrades. By leveraging funding solutions, ecommerce brands can maintain their momentum, ensuring they have the capital to meet tax obligations, while still reinvesting in their growth strategies. Backed by the support of capital partners to offload the burden of tax bills, businesses can keep their operations running at full capacity. In addition, ecommerces freed up from the financial stress of large tax payments, can strategically plan for the upcoming peak season of ecommerce spending, including major promotional events like Amazon Prime Day. This support ensures businesses can stay financially stable without depleting their cash reserves.

Maintain Cash Flow with Clearco’s Receipt Funding

This tax season it’s time to focus on growth, not setbacks. With Clearco’s receipt funding, ecommerce businesses can keep investing in themselves without the disruption from large tax bill payments. Working with a capital partner to easily submit and fund your tax receipts ensures your brand can stay financially stable, and maintain momentum throughout 2025. If you need support this tax season, submit your tax receipts today to keep your business moving forward and reaching new heights!