Ecommerce business funding
Ecommerce funding is finance sized against an online store's sales rather than its filed accounts. The main routes for UK sellers are revenue-based finance and merchant cash advance (both repaid from sales), inventory finance to buy stock ahead of peak, and asset finance for warehouse and fulfilment kit. Lenders underwrite on Shopify, Amazon and Stripe data, so growing brands with thin accounts can still raise from around £10,000.
Director, FundBiz
Oliver leads FundBiz's specialty finance comparison and matching engine. With a background in UK commercial finance, he oversees lender partnerships, eligibility logic and post-decline routing.
Last reviewed: 27 June 2026
The funding routes for online sellers
Four products cover most ecommerce funding needs. Which one fits depends on what the money is for and where your revenue sits.
- Revenue-based finance
- A lump sum repaid as a share of daily online sales, priced as a flat fee. Best for D2C and Shopify brands funding inventory and marketing. Underwrites on store data, so six months of trading can be enough.
- Merchant cash advance
- Similar revenue-share repayment, but sized against card-machine takings. Fits sellers with a physical retail or pop-up arm alongside the store. Quoted as a factor rate.
- Inventory and stock finance
- Funding to buy stock ahead of a peak season, repaid as the stock sells through. Useful when a supplier wants payment up front but the sales land months later.
- Asset finance
- For warehouse racking, packing lines, vehicles and fulfilment equipment. The asset is the security, so terms are softer than unsecured borrowing.
Funding by platform
- Shopify funding Shopify Capital and the independent alternatives UK stores can raise more from.
- Amazon seller funding Amazon Lending versus independent lenders for FBA and marketplace sellers.
WooCommerce, BigCommerce and Etsy sellers use the same revenue-based and inventory routes, underwritten on the store and payment data those platforms expose.
What lenders look at
- Monthly online revenue and its trend over the last 6 to 12 months.
- Which platforms you can connect: Shopify, Amazon, Stripe, the ad accounts and the bank feed.
- Gross margin, because a stock advance has to clear out of the margin the stock earns.
- Refund and chargeback rates, which lenders read as a risk signal.
- Concentration risk, such as a single marketplace or a single hero product carrying most sales.
When ecommerce funding makes sense
The clearest case is inventory that turns faster than the cost of the finance. If a £40,000 stock buy sells through twice before peak ends at a healthy margin, a flat fee of around 4 to 6 percent is easily absorbed. The same logic applies to ad spend that reliably returns more than it costs. It works less well as a patch for a structural cash-flow gap, where invoice finance or a term loan is usually cheaper.
FAQ
How do online businesses get funding without strong accounts?
Specialist ecommerce lenders underwrite on live store and payment data rather than filed accounts. By connecting Shopify, Amazon or Stripe, a six-month-old brand can show real revenue and qualify for revenue-based finance where a high-street term loan would decline on trading history.
What is the best funding for a Shopify store?
For most growing Shopify stores, revenue-based finance fits best because it is sized on store revenue and repaid from sales. Shopify Capital is the convenient in-app option, but independent lenders such as Wayflyer and Outfund often advance more and are worth comparing before you accept the platform offer.
Can I fund inventory before a peak season?
Yes. Inventory finance and revenue-based finance are both used to buy stock ahead of a peak and repay as it sells through. The key check is gross margin: the stock has to earn enough, fast enough, to clear the advance and its fee and still leave a profit.
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Check what your store can raise →Limited companies, LLPs and partnerships of 4+ only.
Last reviewed: 27 June 2026.