Solutions For Online Sellers Who Need Financing

Oct. 31, 2023

BUFFALO, NY – Many online sellers who need financing have come to believe that there is no solution to the cash flow gap, or it’s too difficult to secure the needed funding. Tisha Hulburd (pictured), Chief Marketing Officer at Kickfurther, Buffalo, N.Y. has heard the concerns.

She points out that online sellers want to know: Do I need to take on debt? Do I need to give up equity? How will I cover the cost of buying inventory, for example, before I sell it and earn revenue? “We fund the purchase of inventory on a unique consignment model,” Hulburd explains. “Our community of buyers, participating on the Kickfurther marketplace, purchase your inventory and place it on consignment with you. Through this funding model, the inventory is not recognized as a liability on your company’s balance sheet. The consignment agreement is not a loan and is therefore not recognized as debt.”

It means that Kickfurther works well with other financing partners or capital sources, and funds up to 100% of the cost of inventory. “We have a unique ‘don’t pay until you start to sell’ model,” Hulburd says, “that is product entrepreneur friendly.”

With the holiday shopping season approaching fast, ensuring enough inventory on hand can be a challenge when trying to manage cash flow. “We work with a wonderful ecosystem of partners at Kickfurther, and our digital media partners, such as Hawke Media, talk a lot about the need to not only ramp up advertising, but also preparing now to retain those customers after acquiring them in the holiday season. Funding inventory costs with Kickfurther frees up cash to use for expanded advertising and remarketing efforts before and after the holiday season.”

For those who may be hesitant to try the Kickfurther model, Hulburd believes the don’t pay until you start to sell ethos may help. She explains: “You don’t pay back until your new inventory order begins selling. You set your repayment schedule based on what works best for your cash flow.”

Kickfurther does not take equity in exchange for funding and Kickfurther is not a loan, so it does not put debt on the books. Debt financing options can sometimes further constrain working capital and access to capital, or even lower a business’ valuation if sellers are looking at venture capital or a sale.

Another advantage is quick access, because sellers need capital when their supplier payments are due. Kickfurther can fund entire order(s) each time sellers need more inventory—up to 100% of COGS.

Kickfurther is scheduled to exhibit at Prosper 2024, scheduled for March 4-6, 2024 at the Mandalay Bay Convention Center in Las Vegas. The company is well positioned to serve high growth companies and looking forward to the opportunity to educate ecommerce sellers about the different options available to fund inventory purchases. “People want to do business with people they know and trust,” Hulburd adds, “and a great way to build relationships is in-person trade shows.”