Working Capital Loans For Online Business

Nowadays, e-commerce is no longer just an alternative or supplementary platform for your traditional brick-and-mortar store; it is a business avenue in its own right. According to a 2020 market analysis report by Grand View Research, the global e-commerce market was valued at USD$9.09 trillion in 2019, and it was expected to grow at a 14.7% compound annual growth rate (CAGR) in the next seven years, from 2020 to 2027.

That said, if you’re planning to get into or have already gone into e-commerce, you’re likely hoping to hit it big online. However, as with any business, you need sufficient funds to establish your online business and maintain its everyday operations.

In that case, a working capital loan can help.

What Is A Working Capital Loan?

Working capital refers to money you have on hand. If you have more assets than liabilities, then you have working capital. That said, a working capital loan is valuable if your current liabilities outweigh your assets. This type of debt is common among medium- and small-sized companies that don’t have the means to make ends meet. In simpler terms, a working capital loan allows you to meet your short-term funding requirements to continue operations.

There are banks that offer working capital loans to business owners, but you can also get working capital from online lenders. These lenders offer simple qualifications for approval and ideal terms. It’s not too difficult to qualify and get approved for Credibly’s business working capital loans. With some lenders, once approved, you can receive the funds in your account immediately.

A photo of a notebook with a written words "Working capital".

3 Ways A Working Capital Loan Can Power Your Online Business

  • Fill Your Inventory

Inventory is the foundation of any online retail business. Whether you’re a start-up or a company that’s been operating for some time looking to increase capacity, your customers will always want timely deliveries.

However, at one point or another, online businesses may experience some kind of cash flow setback. When that happens, one solution for a stable source of funds lies in business loans, like a working capital loan.

Such funding will allow you to keep up with your online store’s inventory demands so you can support your business’s growth. You want to make sure you have enough inventory to fulfill the orders you receive, and a working capital loan can be used to help you stock up on items that get sold out regularly.

  • Modernize Your Online Business

This goes without saying, but utilizing technology is crucial when you’re running an online business. Modern technologies can help amplify the quality of your store and its services.

For instance, you might need to update your website to include the latest customer support technologies, such as live chat features or chatbots. Or you may want to create a mobile app that makes it easier for your customers to place orders and communicate with your company.

You could integrate inventory management software into your website to streamline the selling process and make ordering and stocking a breeze, or you could introduce an order management system to your online store so you can keep track of all your business transactions.

If you have the skills to implement these on your own, then you can save a considerable amount of money. In reality though, most business owners don’t have the time or expertise to accomplish these technological upgrades on their own. Often, they will need to hire professionals like a web developer and designer for these projects.

Other than the service of these professionals, online business owners will also need to pay for the software they use. For instance, deploying a website will entail hosting and domain costs. If you’d like to integrate an inventory or sales management system, you’ll also have to pay for those solutions, either with a one-time payment or on subscription.

These things don’t often come cheap, but they’re investments worth making. So, if you don’t have the budget to make these upgrades but you’d like to push for the improvement of your online business, a working capital loan can help.

  • Run Marketing Campaigns

The continuing popularity of online shopping is great news for online business owners, as it means you have a growing market of potential customers. However, it also means you have a growing number of competitors.

The online marketplace is now becoming more and more crowded, and reaching potential customers has become more challenging. That said, since you’re doing business on the digital landscape, you may want to run paid marketing campaigns to increase your lead generation.

You can use a working capital loan to pay for your digital marketing efforts, social media advertising, and other online marketing campaigns. Running and growing an online business requires even more promotion than a physical storefront, as you and all your competitors are essentially just a few clicks away. Thus, you want to get creative and not skimp on your marketing initiatives.


Whether you’re just starting out in e-commerce or you’re looking to grow your business further, you will need enough capital for your venture to be successful. If you don’t have a big enough budget to acquire the things you need, a working capital loan can help provide you with the funds for it. The points above are just some of the ways you can use a working capital loan to power your online business.