e-Commerce Funding Options with Asher Ismail of Uncapped - a podcast by Michael Veazey

from 2022-02-28T07:00:10

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Ecommerce funding is a big issue for most serious Amazon sellers. Once they’ve got product to market fit and got a profit built into their unit economics, most Amazon sellers find the biggest block to growth is having enough capital. Whether it’s paying for enough inventory to stay in stock, or for advertising to drive traffic and thus sales, Amazon and ecommerce sellers usually find that sooner or later their biggest block to growth is enough capital. 

Traditional small business funding options have some big downsides. Equity (or “dilutive funding”) means of course,  giving away a part of the business. Even for a 7-figure exit, that could cost you $200-300K within the next 3 years if you sell your business. That’s not a small thing. And it’s not theory - many many Amazon sellers I know (including our clients) have sold a business for 7 figures. 

Loans (a form of “non dilutive funding”) normally come with fixed repayment terms. That’s bad news if you have a downturn in sales - because you still have to pay your creditors the money back, even if it’s not affordable for your business. But it gets worse. Most serious sized debt comes with a “personal guarantee”. That means that if you fail to pay back the loan, you could lose your personal home or other personal assets. Asher Ismail of Uncapped talks through the options, what the alternatives are to traditional loans, and how to go about getting funding if you want to get it.

On this episode you'll learn:

What is Uncapped -Why you shouldn’t give away equity to fund growth
Challenges on getting fundingHow to prepare to get funding
The Difference between Loan and EquityPros and Cons of Loan and Equity
Other Challengers You will be facing when getting fundingHow to use your capital to develop your business
Understanding “non dilutive” funding

Further episodes of Amazing FBA Amazon and ECommerce Podcast, for Amazon Private Label Sellers, Shopify, Magento or Woocommerce business owners, and other e-commerce sellers and digital entrepreneurs.

Further podcasts by Michael Veazey

Website of Michael Veazey