Online sellers pay for inventory and ads first and get paid after the sale clears. Growth means more cash out before more cash in. Apply in five minutes; funding can arrive in as little as 24 hours.
Apply Now →An online store that is growing has a counterintuitive cash problem. Each additional sale requires inventory purchased in advance and, usually, advertising to find the customer. The cash spent to produce next month's sales leaves the account before this month's sales are fully paid out, especially when a marketplace or payment processor holds funds for a period.
Texas sellers are spread across the large metro areas and smaller towns alike, and many run from warehouses, garages or small fulfillment spaces. What they share is that a good month of sales can drain the account rather than fill it.
| Spend | When it is paid | When it returns |
|---|---|---|
| Inventory order | Up front, often with a long wait for production or shipping | Over weeks or months as units sell |
| Advertising | Daily or weekly | Through sales, with a lag before it is clear what worked |
| Shipping and packaging | Per order or in bulk | Built into the sale |
| Payout hold | Money is earned but not yet in your account | After the marketplace or processor releases funds |
For illustration only, with round numbers that are not our terms: a seller expects demand to climb in the fourth quarter. To meet it, the seller needs to order a larger run of product in the summer, pay for storage and have the budget to advertise as demand arrives. That is tens of thousands of dollars out before the first holiday order ships.
Waiting to order only what the account can afford may mean running out of the best-selling items at the moment the demand shows up. Working capital allows the order to happen on time, and the seller repays out of the ordinary sales of those goods.
Texas sellers collect sales tax and file it with the Comptroller. Filers are notified by letter whether they file monthly or quarterly, and the maximum combined state and local rate is 8.25 percent. There is also a timely-filer discount of 0.5 percent. The money you collect is not yours to spend, and a seller who confuses sales tax collected with income can find the account short on filing day.
Working capital is not a substitute for that discipline, but it can smooth the stretch when a large inventory buy lands in the same week as a filing.
Sole proprietors can apply. The application takes about five minutes and uses a soft credit pull; funding runs from $25,000 to $5,000,000.
Yes. Inventory and ad spend are the standard uses for an online seller. Funding can arrive in as little as 24 hours.
No. Online-only sellers can apply, including sole proprietors.
A payout hold is a common cause of short-term cash gaps, and you can describe it on the application.
That is a business decision. Working capital simply makes it possible to place the order on time.
Funding ranges from $25,000 to $5,000,000.
Three months of business bank statements and a 5-minute application. FICO 500+ considered. $25,000 to $5,000,000, funded in as little as 24 hours.
Apply Now →It takes about two minutes and it will not affect your credit score.
No obligation • No impact to your credit score
