The Growth Blog

How savvy online retailers use finance to outperform their competition

Mar 12, 2019 11:28:08 AM / by inFund

As an online retailer, you know it's a jungle out there. Whether your selling your own branded products or you’re an online seller of 3rd party manufactured goods, competition is fierce. Having a great product simply won’t cut it. The best performing online retailers recognise that it’s about placement, establishing yourself in the marketplace, and providing a quality experience for your customers across the life cycle and at every point of engagement. Of course, all of this takes money. Assuming you don't have a boatload of cash, let's look at two scenarios.

Invest Less

In this case, you know you need to invest a little bit of money, so you spread your little bit of capital around thinly into different areas: you hire your neighbour's kid to make your website, you spend a little on SEO/PPC, and you buy a small amount of inventory. You are now being solidly being beaten by your competition in all areas. Nobody can find your site and if they do it doesn’t have that wow feeling, and your inventory is just sitting there. Alternately, you decide to spend all your money on a top-notch website, but nobody can find it. Or you spend all your money on advertising and you can't convert any sales. You get the picture. It just won't work.


Invest more than you have

Maybe you are able to get a one-time cash infusion. You sink your investment into your website and some advertising, and it's working great. Except... you are collapsing under the load of your own success. You can't handle the sheer volume of work coming in. Because you invested all of your money up front, you can't bring anyone in to help out. Or maybe you run out of stock, and customers are wondering whether you just ripped them off. You crash and burn, your customers become annoyed, and worse, they tell everyone. Your business is essentially on life support at this stage and the likely outcome at this point is you’re facing going ‘out of business’.


The Solution

It's the old problem: you need money to make money. However it's more than that. As we've seen in the second example, a one time infusion of money isn't always enough to keep things going. Maybe you need just a little bit more, but don't always know exactly when you need it. What you need is a live credit facility that is as agile as you are. InFund's smart funding solution will partner with you to provide you with cash infusions when you need it, either to give your business that little push it needs or to help you with cash flow when things start going well, but you are struggling under the weight of success.


So where to invest?


When you get that boost of success, you might simply need to bring in some temporary employees to handle the boom. With that cash infusion from InFund, you can bring them in, and with luck you can make them permanent to handle your continuing success

Marketing (SEO, PPC)

If you want people to find you, you need to make sure you don't end up in the graveyard of Google's page 2 of results (or worse). Invest in quality SEO firms to help with this, or purchase some ad space on the front page.

Stock and Inventory

When business is strong, make sure you can purchase the goods you need. Draw on InFund for that cash to make sure that you can meet the demand that is suddenly now coming in.


When you use InFund's live credit facility, you will be able to draw on whatever cash you need. Also rather than penalising positive behaviour, it rewards it (Repay early. Repay less). If you know you only need the money for a 3-4 month period, you can repay it as soon as you have the capital. You only pay interest on the days you use the funds. 

You don't need to be left in the dust by your competition because of something as small as a cash-flow issue.

Register in minutes for a live credit facility (ranging from £3,000 - £150,000) and get a decision in hours. 

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With your live credit facility in place, you can access funding on demand to invest as and when you need to.

Topics: funding growth, Investing for growth


Written by inFund

inFund is a loan and credit facility provider supporting SMEs to grow and finance their ambitions.