New businesses can be quick to trade equity for e-commerce funding
Clearco can provide your business between $10,000 and up to $10 million in capital investment, and you won’t have to forfeit equity to secure it
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As if business-savvy scene watchers needed more incentive to be bullish about the current state of e-commerce, an already hot online marketplace for digital entrepreneurs is only continuing its march skyward.
Market trends and heavy early-year results show that the Canadian economy for online sales is poised to post increases of around 6.5 per cent for 2021 . That comes on the heels of a positively epic 2020 when COVID-related online orders fueled a boost of more than 23 percent in e-commerce last year.
That instant need for expansion funds can drive some new business owners straight into the arms of venture capitalists and banks, which could put them on the edge of making the most fatal mistake of their growing company’s life.
Clearco offers a different way to fund a company’s expansion.
VCs and bank loan officers want to help small businesses grow. They also want to help their wallets or account books grow. And the latter will definitely take precedent over the former.
For a startup owner, it can be enticing to be offered a large bankroll for capital improvements when sales take a fast upswing. But that money can come with some significant strings attached, often in the form of equity carved out for the lender. Sure, you may get $100,000, $200,000, even $1 million to grow the company, but at the loss of 5 per cent, 15, 20, even 50 per cent of the business itself.