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Jana Pfeiffer April 15, 2020 2 Minutes
Categories: Finance - Categories | Financing Guide

If the product range is well positioned and the number of customers is increasing, this also reduces the stock and new goods need to be ordered. If these cannot be financed by the sale of previous goods, a quick and simple Financing optionis needed to be able to pre-finance the new goods. In this series, we will explain what options are available and what advantages and risks the respective financing methods entail.

Pre-financing of new goods by means of factoring 

For those who want to increase the liquidity of their company in the short term Factoring can be an interesting financing solution. The basic prerequisite for being able to use profit from factoring is a service rendered or a product delivered to a customer. The company issues an invoice to its customer and then turns to a factoring company. The factor pays the invoice amount to the company, minus a fee. The factoring of the receivable allows companies to obtain short-term liquidity to pay suppliers, for example. Otherwise, they might have to wait weeks or even months for the customer to pay.

Pre-financing of goods with fulfin 

At fulfin provides a newly developed type of financing especially for e-commerce sellers. Here, no invoice previously issued to a customer is required, but a loan is paid out flexibly. In addition, a loan can be paid out via the fulfin credit app easy, online and the loan application is fast. In addition to the actual products, the future cash flow, a personal guarantee or global assignment can also be used as collateral. 

Also a supplementary financing in the sense of a Inventory Financing: is possible by means of fulfin. In this way, the costs for the entire purchase of goods, but also the transport as well as storage costs - i.e. all procurement expenses for the procurement of goods - can be covered. In addition, the fees incurred within the scope of the repayment are usually lower than with the Factoring.

fulfin vs. factoring - 3 advantages at a glance 

  1. Factoring contracts are often concluded with a term of at least one year, which suggests a high degree of dependency. fulfin on the other hand, offers flexible financing solutions with individual terms. 
  2. Moreover, factoring can only cover a small part of the financing cycle - from the sale of the supplier receivable to the settlement of the invoice. Financing of Goods by means of fulfin, on the other hand, can financially bridge the entire cycle from procurement or purchasing to the actual sale of goods. No issued invoice is required and the loan amount can be flexibly selected. 
  3. Factoring banks also often find it difficult to finance all receivables when they are purchased from a marketplace such as Amazon.Those few banks that can offer this feature are usually expensive and often only available to wholesale customers. The Financing of Goods with fulfin, on the other hand, is specially adapted to the requirements of the e-commerce business. By means of integration, existing seller accounts can be easily connected to the fulfin credit application - all required data is thus automatically transferred.

So why are you still hesitating? Submit a non-binding application today via our Homepage and get a free initial quote.

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