Which Lenders Offer Business Loans Tailored for Online Businesses?
By Taimour Zaman, Founder, AltFunds Global
Online Businesses Face Unique Funding Challenges
E-commerce sellers, SaaS providers, and digital service platforms often cannot secure traditional bank loans. Without physical assets or long credit histories, many find themselves overlooked by mainstream lenders.
Fintech Platforms Filling the Gap
Digital lenders have developed products that assess real-time sales and transactions, making them more suitable for online businesses.
- Shopify Capital: Offers funding tied directly to Shopify store sales, with repayment linked to daily revenue.
- PayPal Working Capital: Loans based on PayPal sales, repaid automatically through PayPal receipts.
- Stripe Capital: Provides funding to businesses using Stripe, with loan size tied to transaction volume.
- Amazon Lending: Provides working capital to marketplace sellers, enabling them to manage their inventory effectively.
Alternative Lenders for Digital Firms
- BlueVine: Revolving credit lines are often used for purchasing online inventory.
- Kabbage (AmEx): Flexible repayment loans designed for seasonal businesses.
- Fundbox: Extends credit against unpaid invoices, often useful for B2B service providers.
Comparison of Digital Lenders
Lender Approval Speed Loan Size Repayment Best For
Shopify Capital 1–3 days $200–$2M+ % of daily¹
Sources List
- Forbes. (2024). The Future of Digital Lending for Online Businesses. Retrieved from https://www.forbes.com
Disclaimer Footnote
¹ Forbes confirms the use of real-time sales data by digital lenders in structuring loans.
Compliance Disclaimer
This publication is provided strictly for educational and informational purposes. It does not constitute, and should not be construed as, an offer, solicitation, or recommendation to purchase, sell, or otherwise engage in any transaction involving standby letters of credit (SBLCs), bank guarantees, or any other financial instruments.
AltFunds Global AFG AG is neither a bank, broker-dealer, nor a licensed financial intermediary under Swiss law. All references to financial instruments, providers, or case studies are illustrative in nature and are not to be interpreted as investment advice or a guarantee of performance.
Access to certain financial products, including SBLCs, is restricted to qualified counterparties and accredited investors as defined under applicable laws and regulations. Any individual or entity considering participation must conduct independent due diligence, seek professional legal, tax, and financial advice, and ensure compliance with all relevant regulatory requirements, including those of the Swiss Financial Market Supervisory Authority (FINMA) and equivalent authorities in their jurisdiction.
Past performance, case studies, or survey data referenced in this blog are not indicative of future results. No assurance is given that any transaction or strategy described herein will be suitable or profitable for a particular investor.
By reading this publication, you acknowledge and agree that AltFunds Global AFG AG assumes no liability for losses or damages arising from reliance on the information contained herein.
👉 Want tailored guidance? Schedule your strategy call now.