Industry

Ecommerce funding in Canada: what funders actually read.

The deposit patterns, seasonality and timing that decide how a Canadian ecommerce file is read.

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How funders read ecommerce files

Digital revenue, platform payouts and long inventory lead times make ecommerce well suited to revenue-based financing.

Platform payouts and their timing
Ad-spend relationship to revenue
Inventory lead times and reorder cadence
Returns, chargebacks and refunds

A worked example

Illustrative arithmetic

A Vancouver online retailer with $60,000 a month in revenue takes $40,000 at a 1.2 multiple, repaying $48,000 at 8% of monthly revenue over about ten months.

Every figure on this page is illustrative arithmetic in Canadian dollars. It is not an offer, a quote or a promise of approval.

Typical starting points

Monthly revenueTypically from around $20,000 a month in deposits for Canadian files. The exact line varies by funder and by file.

Time in businessTypically about 12 months. Newer businesses can be reviewed, but the options narrow.

Account healthLimited low-balance or negative days. Funders read the last few months of bank statements for this.

CreditScores from 500 are considered. A score of 600 or higher opens more options and better offers.

DocumentsA signed application and recent business bank statements, typically the last four months.

Existing advancesFiles with an existing advance can be reviewed, including second position.

Common questions

What do funders read first in ecommerce files?

Platform payouts and their timing, then ad-spend relationship to revenue.

What is the money usually used for?

Most often: bulk inventory with a supplier discount; advertising ahead of a peak; new product development; fulfilment and packaging.

Is ecommerce funding the same as for other trades?

The review reads the same things in every trade. What changes is the rhythm: digital revenue, platform payouts and long inventory lead times make ecommerce well suited to revenue-based financing.

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