How to Get a Loan for an E-Commerce Business in 5 Steps

Running an e‑commerce business may not come with the overhead of a physical storefront, but it still requires capital to operate and grow. Whether you’re launching a new product line, increasing your marketing budget, or investing in fulfillment, access to financing can make a major difference.

Fortunately, there are loan options designed specifically for online businesses. These programs take into account the unique cash flow patterns and digital infrastructure of e‑commerce operations. The key is understanding what lenders look for and how to choose the right loan for your needs.

In this guide, we’ll walk through five essential steps to help you secure funding for your e‑commerce business, even if you don’t have a brick-and-mortar location.

1. Identify Your Financing Needs

Before applying for a loan, it’s important to be clear about how the capital will be used. E‑commerce businesses have a wide range of financing needs, and aligning your loan purpose with the right funding option can improve your chances of approval and help you use the funds more effectively.

Some of the most common reasons e‑commerce business owners seek financing include:

• Purchasing inventory: Stocking up ahead of peak sales periods or expanding product lines often requires upfront capital.
• Marketing and advertising: Running paid ad campaigns on platforms like Google, Facebook, or Instagram can drive sales, but requires consistent cash flow.
• Website improvements: Investing in website design, performance upgrades, or UX improvements can enhance conversion rates and customer experience.
• Hiring or outsourcing: Scaling often means bringing on help, whether it’s customer service, fulfillment, or digital marketing support.
• Fulfillment and logistics: Improving your shipping capabilities or upgrading warehouse infrastructure can support higher order volumes.
• General working capital: Day-to-day expenses such as platform fees, software tools, and packaging materials can add up quickly.

Having a clear use case not only helps you determine how much to borrow, but also shows lenders that you have a thoughtful plan for using the funds to grow your business.

2. Explore the Types of Loans for E‑Commerce Businesses

E‑commerce businesses have access to a variety of financing options, each designed to meet different needs. Understanding how these loan types work can help you choose the one that fits your business model, revenue cycle, and goals.

Here are the most common types of loans used by online sellers:

• Term loans: A fixed amount of capital repaid over a set period, usually with regular payments. Ideal for one-time investments like inventory purchases, marketing campaigns, or website upgrades.
• Business lines of credit: Flexible access to capital that you can draw from as needed, up to a set limit. Useful for managing ongoing expenses, seasonal fluctuations, or unexpected costs.
• Revenue-based financing: Repayment is tied to a percentage of your daily or weekly sales. This option is well-suited for e‑commerce businesses with steady sales volume but limited access to traditional credit.
• Inventory financing: Funding specifically for purchasing products to resell. This type of loan often uses the inventory itself as collateral.
• SBA loans: Government-backed loans that offer longer terms and lower rates. While harder to qualify for, they can be a good fit for established businesses with strong financials.
• Merchant cash advances: A lump sum of capital repaid through a portion of future credit card or online sales. Typically used for short-term needs but comes with higher costs.

The right loan depends on how much funding you need, how quickly you need it, and how you plan to repay it. For e‑commerce businesses, flexibility and speed are often key factors.

3. Understand What Lenders Look For

Before you apply, it’s important to know what’s required to qualify for a loan through SBG Funding. While approval depends on several factors, our process is designed to be faster and more flexible than traditional lenders—especially for e‑commerce businesses without a physical storefront.

Here’s what you’ll typically need to meet eligibility requirements:

• Time in business: At least 6 months of operating history is required for most SBG Funding programs.
• Credit score: A minimum credit score of around 500–600 is typically needed, depending on the loan type. Even with fair credit, many applicants still qualify.
• Annual revenue: Most loans require at least $180,000 to $250,000 in annual business revenue. Higher revenue may open the door to larger loan amounts or more favorable terms.
• Recent bank statements: You’ll need to provide at least 3 to 6 months of recent business bank statements. This helps evaluate your cash flow and repayment ability.
• Sales data: If you sell on platforms like Shopify, Amazon, or Etsy, sharing your sales reports can help strengthen your application.
• Basic business information: This includes your legal business name, business entity type, EIN, business address, and loan purpose.

If your business meets these minimum requirements, you can typically apply in minutes and receive a funding decision quickly. For those who qualify, funds can be deposited as soon as the next business day.

4. Choose the Right Loan for Your Business

Once you understand your financing needs and what lenders are looking for, the next step is selecting the loan that best fits your business. E‑commerce businesses often benefit from flexible financing options that align with their sales cycles, marketing strategies, and inventory timelines.

Here are a few common scenarios and the types of loans that may be a good fit:

• You need to purchase inventory ahead of a busy season: A short-term business loan or inventory financing can provide fast capital to stock up without tying up cash flow.
• You have ongoing marketing or fulfillment costs: A business line of credit gives you access to flexible funds that you can draw from as needed. This is ideal for covering recurring expenses or managing growth-related costs.
• You want to scale quickly but repay gradually: A revenue-based financing option allows you to make payments based on your daily or weekly sales, giving you flexibility during slower periods.
• You qualify for longer-term financing: If you have strong revenue, a solid credit profile, and over a year in business, an SBA loan or structured term loan may offer lower rates and extended repayment terms.
• You need fast funding with minimal paperwork: Many e‑commerce businesses choose working capital loans from SBG Funding because they’re designed for speed, with a simple application and funding in as little as 24 hours.

Choosing the right product starts with understanding how the loan aligns with your business goals. If you’re unsure which option fits best, SBG Funding’s team can guide you through the decision based on your unique situation.

5. Apply for the Loan with Confidence

Once you’ve determined the right loan for your e‑commerce business, the final step is submitting your application. At SBG Funding, the process is built for speed, simplicity, and flexibility—so you can focus on running your business, not filling out paperwork.

Here’s what you’ll need to apply:

• Basic business details: Legal name, business structure, EIN, business address, and time in operation
• Recent bank statements: Typically 3 to 6 months of business bank activity to assess cash flow
• Annual revenue figures: Total sales or revenue, often supported by sales platform reports (from Shopify, Amazon, Stripe, etc.)
• Loan purpose and requested amount: A clear explanation of how the funds will be used to support or grow your business

The application can be completed online in just a few minutes. Once submitted, our team reviews your information and typically provides a decision within 24 hours. If approved, funds are often available by the next business day.

Whether you’re preparing for a sales surge, launching a new product line, or investing in digital infrastructure, getting the right funding should be fast and straightforward. With SBG Funding, it is.

Flexible Funding for E‑Commerce Businesses from SBG Funding

Whether you’re launching a new product, scaling your ad spend, or preparing for peak season, SBG Funding offers fast and flexible financing built for e‑commerce. Our tailored solutions are designed to match the speed and agility of your online business.

Why Choose SBG Funding?

• Fast Approvals: Get a decision in as little as 24 hours.
• E‑Commerce-Friendly Options: Use funds for inventory, marketing, fulfillment, or platform upgrades.
• No Collateral Required: Access working capital without putting assets on the line.

How to Apply

• Apply Online: Complete our short application in minutes.
• Get a Fast Decision: We’ll review your request and respond within 24 hours.
• Receive Funding: Approved funds can be in your account as soon as the next business day.

Applying won’t affect your credit score. Get the capital your e‑commerce business needs—without the delay.