Automate your accounting and taxes, or outsource your bookkeeping. Availability of funds can be the factor that helps you lift your shop to the next revenue level.This guide should bring more light to the matter – you will learn which alternatives exist and how you can compare them.When an ecommerce business is healthy and you want it to grow, a loan is a suitable tool.Just like you would use other online seller tools that help you to optimize the categories you are selling in.Without external financing, it will be harder to grow your business.In summary this makes: 23 days 6 days – 8 days = 21 days cash conversion This means, on average it takes you 21 days to collect cash after you have paid out cash in your operations.Unless either your gross margin increases significantly or your suppliers can give you longer payment terms, you will need to find an external source of financing.
When you sum up inventory and receivables (items you need to finance) and subtract payables (implicit short-term financing you get from suppliers) you get the net working capital, the net amount that is financed by you.
There are months of successful growth and there are difficult months in the life of every retailer. You can take counter-measures when you are aware of certain seasonal effects.
You will reduce your inventory and ask your suppliers for more favorable payment terms.
Your products and the service you provide to your customers are at the center of your attention.
Other administrative activities that don’t relate to making sales directly are often regarded as chores.