E-Commerce Business Loans: Best Options for Online Stores

American Express Business Blueprint^TM offers e-commerce loans to small businesses in addition to other cash flow management tools. You can apply for a American Express Business Line of Credit in a timely manner. Business lines of credit provide borrowers with a set limit of funds to draw against when needed.

Main Features

Business lines of credit from American Express range from $2,000 to $250,000 and each draw is repaid in 6-, 12-, or 18-month installments. Six-month loan fees are 3-9%, 12-month loan fees are 6-18%, and 18-month fees are 9-27%. To qualify, you need a minimum credit score of 640, have been in business for at least one year, and have at least $3,000 in average monthly revenue.

However, all businesses are unique and are subject to approval and review.

Backd was founded in 2018 and has since funded more than 10,000 small businesses, including those in ecommerce. Backd understands that obtaining funding through traditional banks can be a hassle and time-consuming, so they’ve made sure to make the process as quick and seamless as possible with the hopes of getting more businesses the funding they need. So far, they’ve succeeded and continue to help small businesses prosper.

Main Features

Backd offers two products: working capital loans and business lines of credit. Working capital loans range from $10,000 to $2 million with terms up to 16 months. This type of loan is best for ecommerce businesses who have a one-time expense and are able to pay back the loan quickly. A business line of credit, on the other hand, is for those that want access to funds for an unlimited period of time. There are no terms, and you can borrow up to $750,000. To qualify for either option, you need to be in business for at least one year and have $100,000 or more in annual revenue.

If you’ve previously been denied a loan for your ecommerce business, don’t let that stop you from giving Lendzi a chance. Lendzi was founded in 2020 and caters to borrowers with high revenue who have been denied a business loan elsewhere. They are a direct lender in addition to partnering with more than 75 other lenders, increasing your odds of qualifying for a loan.

Main Features

Lendzi’s working capital loans are up to $400,000 and range from three to 15 months, with factor rates starting at just 1.15. The credit score requirement for this type of funding is just 500, making this the ideal type of loan for ecommerce businesses that have been denied a loan due to poor credit.

If credit is not your issue, Lendzi offers six other types of small business loans, including equipment financing, merchant cash advances, short- and long-term loans, business lines of credit, and SBA loans. Applying takes just a few minutes online, and once you submit your application a representative will give you a call. To qualify, you should have a business history of at least six months and $180,000 or more in annual revenue.

If you need to cover day-to-day expenses, a working capital loan from National Funding can be a good fit. You may use the proceeds for payroll, platform payments, permits and licenses, and anything else you need to run your e-commerce store successfully.

Main Features

National Funding’s short-term working capital business loans range from $5,000 to $500,000 with repayment terms between four months and two years. The pay rate starts at 1.10. For a chance at approval, you’ll need a credit score of at least 600, a business history of six months, and $250,000 or more in annual revenue. If you pay your loan in full within 100 days, you’ll receive a 7% discount on your balance.

Bluevine offers credit lines up to $250,000 with quick approvals, low starting rates, and no monthly fees or prepayment penalties. Bluevine is a great fit for creditworthy business owners who need ongoing access to funds. E-commerce business owners who don’t want to apply for new credit every time they need it, such as those who need capital for new product drops, may find Bluevine’s line of credit meets their needs.

Main Features

Bluevine offers lines of credit from $5,000 to $250,000 with simple interest rates starting at 4.8%. With a Bluevine line of credit, you can draw funds as needed and repay in fixed monthly or weekly payments over six or 12 months. Interest rates will likely be lower than a business credit card and you can borrow more at a time.

To be eligible for a line of credit from Bluevine, you must have a personal credit score of at least 625, at least six months of business history, and at least $10,000 in monthly revenue. As you make payments, you’ll build business credit and gain access to more funds.

Biz2Credit connects you with lenders that offer working capital funding for e-commerce businesses and term loans that can be used for a variety of business needs. It’s best for businesses with at least six months of history that need more than $25,000 in working capital.

Main Features

With Biz2Credit, you can borrow anywhere from $25,000 to $2 million in working capital funding or up to a $500,000 term loan. Term loans have a 12- to 36-month term with simple interest starting at 7.99% plus an origination fee, while working capital loan terms and rates vary by lender.

You can repay daily, weekly, or bi-weekly. Most customers who are approved for working capital have at least six months of business history, annual revenue above $250,000, and a minimum 575 credit score. Most customers who are approved for a term loan have at least 18 months in business and a minimum 660 credit score.

Uncapped has developed a loan product that is conducive to e-commerce businesses. In fact, the lender only works with businesses with an online model. You can choose either fixed-term or revenue-based financing, which helps protect you from unaffordable payments.

Main Features

You can borrow between $10,000 and $10 million from Uncapped to grow your e-commerce business. Instead of charging interest, the lender charges a flat fee as a percentage of the loan amount, which ranges from 2% to 12%. There are no other costs, such as origination fees or prepayment penalties.

You can choose to repay the loan in fixed installments over three to 24 months, or you can repay between 5% and 25% of your monthly sales until the principal and fee have been repaid. There’s no minimum credit score required, but you’ll need to have at least six months in business and earn $10,000 or more in monthly revenue to be eligible.

GoKapital can help your e-commerce business get the funding it needs to succeed. First, GoKapital does not have restrictions on industries like some other lenders do. Second, the lender operates in all 50 states, so regardless of where you live, GoKapital is an option. And finally, GoKapital has six different types of loans available, in addition to commercial loans and investment property loans.

Main Features

GoKapital offers e-commerce loans and lines of credit ranging from $5,000 up to $5 million (commercial loans go up to $50 million). Loan terms are as short as three months on a merchant cash advance and as long as 25 years for an SBA loan. Applying takes just a few minutes via their online application and you should receive a lending decision within 24 hours. If approved, funds can be in your account the same day.

Qualifications will vary depending on the type of loan you apply for, but overall GoKapital wants to see a business history of at least one year and a minimum credit score of 500. Annual income requirements are $240,000 per year on most loans, but startup loans require just $50,000.