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Payoneer: Pioneering advance capital solutions for online businesses

There hasn’t been a more important topic throughout the COVID-19 pandemic then the topic of cash flow. Or more specifically, how to keep it and your business healthy when the world comes undone. Small businesses face hiccups on a normal day, nevermind in the face this crippling virus. 

We’ve been writing about the ways a business can boost liquidity by using indirect tax reclaim mechanisms but our partners are also making strides in helping our mutual online retail clients further enhance their working capital. 

Spotlight on Payoneer

Access to working capital and liquidity boosters has never been more relevant. It buoys up your business during rough seas and provides extra boost when you need it to expand your business. 

If you’re an online seller, Payoneer will provide you with up to 100% of the value of your incoming payments in advance through their Working Capital program. It’s really very simple. You can use their advance capital service to request up to 50,000 USD/GBP per store, every 30 days, depending on your marketplace’s payment cycle. You’ll repay the advance automatically when your incoming payments clear through the marketplace. 

Put simply, you pay back the Capital Advance offer only once you get your payment from your consumers.

5 Ways Having Access to Advance Capital Can Help Your Business

Here are some ways a working capital advance from Payoneer can help your business:

1. Ride the wave of trending products

You’ll always be ready to leverage new trends and fads as soon as they start to break. Keep your inventory stocked with the hottest items and don’t risk missing the moment.

2. Beat the bottleneck ahead of peak shopping periods

Before major sales periods like holiday shopping season, eCommerce sellers place bigger pre-sales orders – all at the same time, with the same suppliers. That’s because they need to wait until they have the working capital in hand before they can place the order. Suppliers rush to fill these orders, but it’s inevitable that some online sellers don’t get their goods in time. 

Having working capital early means you can beat the rush for holiday orders, order early, and avoid the bottleneck. You know you’ll get your inventory in time for the earliest of holiday shoppers, and you won’t have to wait while other orders are filled first.

Ultimately, you’ll be able top present a fully-stocked online store with all the best products because you got the working capital you needed to keep your inventory at the ideal level.

3. Seize business opportunities

Having working capital at hand allows you to seize every opportunity to grow and expand your business. You can add new product lines, diversify your inventory, expand your business, and build your store, maybe even buy a competitor. 

4. Pay less for your stock

Online sellers can negotiate better terms and pay lower fees when they pay upfront – but that’s only possible if you have enough working capital. Payoneer Capital Advance helps you to build better relationships with your suppliers and secure better terms and lower prices, because you’ll have the cash in hand to seal the deal.

5. Ride out seasonal sales troughs

It’s natural for every eCommerce business to go through periods of high and low sales. The trouble is that when sales are low, you still need to keep your inventory current, maintain inventory levels, pay overhead, and handle your marketing. It’s important to keep your business on an even keel, whether you’re facing slower sales periods or preparing for major seasonal sales. Payoneer Capital Advance gives you the backup you need to expand and grow your business, whenever the opportunity occurs.

Conclusion 

vatglobal is proud to work side-by-side with such innovative and helpful businesses. We’re all pulling our resources and pivoting our infrastructures to be able to help other businesses through any economic downturns afoot. Payoneer’s Capital advance service is a no-brainer for any eCommerce business looking to expand. 

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