BigCommerce and Square offer New Financing Option for Sellers

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Two years ago, BigCommerce and Square formed a partnership to provide inventory management for sellers that operate physical and online stores.

BigCommerce is a leading SaaS eCommerce platform with over 50,000 active stores, and Square (Square Capital) is a leading payment processor and financial services firm used by many small to medium-sized businesses.

The partnership was a natural fit. Mainly since it solved a problem by small businesses owners that spent hours every week trying to match inventory levels in their store with online inventory.

There is nothing more aggravating than selling a product online when there is no stock left. It is lost revenue, lost profit and possibly a lost customer.

BigCommerce Sellers can Now Finance Inventory for Busy Periods

The next evolution in enabling small businesses to take advantage of busy periods is the ability for business owners to stock up on inventory.

Unfortunately, small businesses often lack the financial resources to cash in on busy seasons. Many SMBs run out of stock because they didn’t have the resources to adequately stock up for the holiday season or other busy periods.

Image: Adobe Stock

The partnership by BigCommerce and Square Capital may provide short-term working capital based on historical sales volume.

A working capital loan could be the solution for many small businesses to improve revenue and profit.

In this collaboration, Square Capital receives anonymized transaction data for the BigCommerce online shop which allows the company to pre-qualify the merchant.

This integration speeds up the approval process and eliminates a lot of frequent headaches for funding small business loans.

Is a Working Capital Loan Right for Me?

Working capital loans can be a real lifesaver for merchants, but any loan product comes at a cost. It is imperative when thinking about using a loan to purchase additional inventory you make a conservative forecast on your expected sales.

Image: Adobe Stock

Also, you may wish to discuss a working capital loan with your accountant or financial advisor.

This consultation provides you with an independent opinion about your expected sales and profits and how to properly deduct the cost of the loan from your taxes.

While there is no requirement to use the money for inventory, few other uses other make a lot of sense for working capital type loans. Marketing may be one such possibility.

They usually are short term loans and any use of the funds should be earmarked for sales growth. Otherwise, a working capital loan can become a significant expenditure and reduce profits.

Do you sell on BigCommerce and have an offline store? Could this working capital loan help you? Drop us a note in the comments section below.


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