Of course, financing for electronic commerce requires channels other than that of individuals. Through a series of products or lines of credit that take into account your own needs. Where one of the most relevant is the liquidity to commit its infrastructures or simply to develop little by little and face competition in the digital sector.
Within these credit lines there are products as specific as factoring and to a lesser extent leasing can be at this time. Covering a good part of the objectives that online stores or businesses have. Through a type of interest which may be more advantageous to your interests. With a difference of a few tenths of a percentage with respect to the offer offered by financial entities to individuals.
On the other hand, it cannot be forgotten that the requirements that this class of companies need are different from those of traditional or conventional businesses. By needing expenses that differ from these and therefore with a different treatment by financial institutions. This is one of the reasons why we are going to present the financing classes for electronic commerce from now on. They are many and varied, as you will see in this article.
Types of financing: factoring
It is a product tailored to any entrepreneur or professional and, especially, small and medium-sized companies that, with this formula, can rreduce workload of the administrative department, outsource the accounting generated by sales and its collection. As well as advances on the due date of payment of the invoices, all this will improve the profitability, the credit capacity and the financial solvency of the company.
Among the advantages of contracting this product are the periodic, regular and updated information of the debtors, the reduction of administrative burdens or simplifies the accounting of the customer account, among others. On the other hand, there is no defined profile of companies that use this financial product, rather the delimitation is provided by the product sold and the payment conditions.
In the opinion of the Spanish Association of Factoring "There is no defined profile of user companies of this product, rather the delimitation is given by the product sold and the payment conditions. In other words, all companies can be Factoring users, sell in the domestic market or export ”.
Renting with greater flexibility
The term renting is synonymous with long-term rental of a property, in this case of a vehicle, whatever its make, model or segment. Through renting, a company (the leasing company) buys a new vehicle, according to the tastes and needs of its client or lessee, and makes it available to them.
Although it is not a product that is closely linked to the interests of an online store or commerce, it can be of great help at some point in the life of that company. Among its most relevant advantages is the fact that the rental can be made by all types of natural and legal persons without restriction and represents a comprehensive service that covers all aspects related to the use of the property it affects.
It is a very special means of financing that can help the interests of the owners of an online store or commerce at some point or another. Because it offers a much more competitive interest rate than the rest of the credits authorized for this special class of companies. With an amortization that is characterized by its greater flexibility and that is adjusted to the needs of digital companies.
Commercial discount and advances
It is a service that advance the cash to pay bills (bills, promissory notes and receipts) and commercial credits, online and with a well-valued risk. That is, they anticipate the money you need after deducting the interest for the term and the corresponding expenses. Then, when the expiration date arrives, the credit institutions are in charge of the collection management.
Another of the products that are available to stores or online businesses are the so-called receipt charges. Where if the collection of receipts is a constant task in your business, the credit institutions are in charge of offering the best way to manage it through their online service for companies. For Crearrange your remittances easily through a software, as well as to import your remittances if you already have them in standard AEB format.
You can also rtrack returns; The information is sent to you daily. They also offer you converters and remittance generators with standard formats in case your company does not work with specific files.
Risk coverage in operations
Market oscillations always pose a risk for those who suffer them and if you are exposed to that risk you will never be calm. So you can continue with your variable financing In a less risky way, we indicate that in almost all banks there are different catalog products, depending on the type of client, such as interest rate hedges, which protect against interest rate rises in two ways.
MAXIMUM INTEREST RATE OPTION (CAP) for natural and legal persons. It protects against a rise in interest rates above a maximum rate set at the beginning for a specified period of time, in exchange for a premium. In each period, if the interest rate is above that maximum rate, the bank compensates you for the difference.
INTEREST RATE FINANCIAL EXCHANGE (SWAP) for certain legal entities. It is about exchanging a variable interest rate (such as Euribor) for a fixed rate. In each period, if the fixed rate is higher than the variable rate, the customer pays the difference. Otherwise, it is the bank that pays it. In the event of early cancellation, the product will be canceled on the market and may lead to negative settlements for the bank or the customer.
And what do these coverages give you?
- You cover yourself against risks in the face of improvised climbs
- You can know in advance the financial costs
- You protect yourself against market fluctuations
ICO financing lines
When developing your online business, there are many things you need to take into account so that it works as you expect. Therefore, to face this large investment, the ICO loans. A line of financing with which you can boost your business by investing in both new projects and improvements, inside and outside of Spain.
- For Freelancers and Companies of any size
- To finance investments and liquidity needs
- Loan and Leasing
- With very flexible financing terms
- Advantageous conditions adjusted to your investment project
- Up to 12,5 million euros per client and up to 100% of the investment project
Credits in online format
Their greatest advantage for online companies lies in the fact that they are granted faster than traditional loans, without the need to carry out any type of paperwork, although their grant will depend on the pre-granted limit to each client and, which are also distinguished because the amounts loaned are lower than through other credit modalities, despite the fact that some financial entities that grant it raise this amount to 60.000 euros.
They usually apply an interest rate that varies between 7% and 10%, and with a repayment term that rarely exceeds five years and, to which must be added the possible commissions for study, partial amortization or cancellation that can represent between 1% and 3% additional on what must be paid for the contracted product. Although it is becoming easier to find them among the offer that financial institutions have been making in recent times, it must be borne in mind that their contracting does not imply any type of discount on the interest rates that apply with respect to the credits subscribed through from other more traditional channels.
In short, online stores or businesses have a different financing offer that is more tailored to their real needs. From where you can pay for the purchase of computer equipment, access to the latest and new information technologies or simply to enhance customer service, among some of the most relevant demands at this precise moment. Through a process that can be carried out from your usual bank or through the offers and promotions that these financial entities have been carrying out. So that those responsible for digital companies are in a better position to compete with other companies with similar characteristics. To maintain liquidity in the savings account from now on.