Financing
October 19, 2023

How to Improve Cash Flow and Grow Your E-commerce Business with Fixed Payment Financing

Author
Clearco

How to improve cash flow and grow your e-commerce business with Fixed Payment Financing

Maximizing profits is important year-round, but especially before a hectic and busy season such as Black Friday/Cyber Monday that could really shape a company’s growth for the year and prepare for financial success in the New Year. Compared to revenue based financing options, fixed payment financing is a smarter and more stable alternative that is preferred by seasoned e-commerce owners, because they know that this option will limit risks, help increase profits and cash flow without sacrificing ownership or control.  In this article, learn how fixed payment financing can be an ideal choice for your online business this Q4 to maximize profits, and why Clearco is the best in class option as a leader in this industry that’s funded over 10,000 businesses. 

Introduction to Clearco's Fixed Payments

Clearco offers growth capital to businesses through a unique financing model based on fixed payments. Unlike traditional revenue share financing, which requires businesses to give up a percentage of their future revenue in exchange for upfront funding, Clearco's fixed payments allow businesses to access the capital they need without having to pay back a large sum when cash flow is particularly important right before and during the busy holiday season. 

Clearco's fixed payment invoice funding solution is based on a percentage of a business's monthly revenue, and remains the same regardless of how much revenue the business generates. This means that businesses can predict their monthly payments and plan accordingly, without worrying about unexpected fluctuations in their payment amounts.

Understanding Fixed Payments and Revenue Share Models

Revenue share models have been a popular financing option for businesses in recent years, as they offer a way to access funding without taking on debt or sacrificing equity. Under a revenue share model, a business agrees to give a percentage of its future revenue to an investor in exchange for upfront funding.

While revenue share models can be a useful way for businesses to access growth capital, they can also be risky. Since the amount of revenue a business generates can fluctuate over time, the amount of money it has to pay back to investors can also vary. This can make it difficult for businesses to plan for the future, and can lead to unexpected financial challenges down the line.

Fixed payments, on the other hand, offer businesses a more predictable way to access capital. With fixed payments, businesses know exactly how much they will need to pay back each month, regardless of how much revenue they generate. This can help businesses plan for the future and avoid unexpected financial challenges.

The Advantages of Fixed Payments for Businesses

There are several advantages to using fixed payments over revenue share models.

  1. Fixed payments offer a more predictable way to access growth capital. Since the payment amounts remain the same regardless of how much revenue a business generates, businesses can plan for the future and avoid unexpected financial challenges.
  2. Fixed payments offer businesses more control over their finances. Unlike revenue share models, which require businesses to give up a percentage of their future revenue, fixed payments allow businesses to retain ownership and control of their business. This means that businesses can continue to grow and expand without sacrificing equity or control.
  3. Fixed payments can be a more cost-effective way to access growth capital. Since businesses don't have to give up a percentage of their future revenue, they can avoid the high effective cost of capital that can come with revenue share financing. This can help businesses save money and maximize their profits over time.

Comparing Fixed Payments to Other Financing Options

When it comes to financing options for businesses, there are several choices available. Traditional bank loans and lines of credit offer a way to access capital, but often require collateral or a strong credit history. Revenue share models offer a way to access funding without sacrificing equity, but can be risky and expensive.

Fixed payment options like Clearco offer a unique alternative to these traditional financing options. They provide businesses with a predictable way to access growth capital, without requiring collateral or sacrificing equity. This can make them a more attractive option for businesses looking to maximize their profits and grow without taking on unnecessary risk.

Why Clearco's Fixed Payments Solution is a Smart Alternative for Maximizing Q4 Profits

With fixed payments, businesses can access the capital they need without sacrificing equity or control. The predictable payment amounts make it easy to plan for the future and avoid unexpected financial challenges. And, since businesses don't have to give up a percentage of their future revenue, they can avoid the high effective cost of capital that can come with revenue share financing.

This holiday season, if you're looking to maximize your Q4 profits and grow your business, consider leveraging Clearco's fixed payments as a smarter alternative to other financing options to increase your cash flow, ensure a well stocked inventory, and most importantly, decreased risk and volatility. With Clearco, you can access the capital you need to grow and expand, without sacrificing equity or control. So why wait? Sign up with Clearco today and take your business to the next level.

Clearco

Clearco is the fastest invoice and receipt funding solution for ecommerce.