Ecommerce has emerged as the global leader in online sales for all products and services. With an estimated global market share of $4.9 trillion in 2021, these businesses project a 50 percent growth in the next three years. It is also one of the main reasons why there are multiple ecommerce business funding opportunities for short- and long-term finance today. Here are the top five ideas to explore and fund your new business or expand existing operations.

Get a line of credit
Using a line of credit is one of the easiest ways to fund your business with a substantial injection of cash flow. Banks and financial institutions offer their existing customers revolving credit or overdraft facilities to withdraw money for a business. There are many advantages to taking a line of credit. First, you only pay interest on the amount taken even if the credit is for a higher limit. Credit interest rates are comparatively lower than other forms of debt. And second, there are fewer restrictions on how the amount can be used to achieve your business goals.

Customer bank loans
If you have a good credit rating, banks will offer short- and long-term loans to finance your business needs. The interest rates are higher than that in lines of credit. Short-term loans can be taken for bridging any financial gaps, exploring micro-investment opportunities, and managing daily overheads of your ecommerce store. This way, your business doesn’t get affected because there was a cash flow shortage. Long-term bank loans are a more feasible alternative to help expand operations, scale up the business, upgrade equipment, and even provide working capital for potential physical stores.

Try crowdfunding
If you have a new business idea or plan to expand and upgrade, post your idea on any popular crowdfunding platform online. When customers and potential investors like the idea, they will fund your project on the platform. You get to test the market and see who is interested in the business or product. Crowdfunding also generates pre-orders that can help you stock only what’s necessary and eliminate the need for excessive inventory turnover or management. The bottom line is crowdfunding works when your product or business idea appeals to the customers. In many cases, entrepreneurs have managed to raise more than their target. So, it is an excellent option to consider for ecommerce business funding.

Apply for grants
The government offers grants to businesses that meet their investment and operations criteria. For example, if your ecommerce business sells products or deals in services that promotes good causes sponsored by the government, you can use this money interest-free and never have to repay a single penny. Grants are usually reserved for companies that operate with limited capital and require debt-free cash injection to support both the cause and the business. Typically, you will have to apply for a grant, and only after a thorough audit, will the government deem your company worthy or unworthy of the free cash flow injection.

Consider equity investments
Equity investments for ecommerce business funding involve the sale of a percentage share of the business. In layman’s terms, if your friends & family, angel investors, and venture capital firms decide to put up their money for the business, you owe them a part of the ownership for the money invested. Also, an initial public offering or IPO is one of the most active forms of equity investments where shares of the business are sold to any investor willing to put up capital in exchange for ownership. The money is freely available for any capital and overhead expenditure necessary for the business.