E-commerce, SaaS & Online Marketplace Finance

Yes, you can apply for a cash flow loan with a low credit score. Unlike a traditional loan, cash flow loans rely on your ability to prove your business has a healthy cash flow, which is used to assess the loan terms.

Unfortunately, Portman can only finance companies registered and operating in the UK.

We cater to businesses of various sizes, from small to large enterprises. Our funding solutions are designed to be flexible and adaptable, accommodating the diverse needs of businesses seeking to enhance their productivity, regardless of their size.

The interest rates available to each customer vary based on a large number of factors including the trading history and credit rating of the business, the credit history of any company directors, company turnover, how much money is required and what the funds are being used for. For customers with the best credit rating, Annual Flat Rates start from: Vehicle Finance – 5.5% Asset / Equipment Finance – 5.9% Growth Guarantee Scheme Asset Finance – 6.49% Unsecured Term Loan – 7.2% No PG Tax Loan – 9.4% Short-term Loan – 12.3% Short-term Flexi-Loan – 13.2%

Before approving a business finance application, lenders assess several key factors to determine your eligibility and ability to repay. These include:

1. Business Credit Score
Your credit score is a critical factor in the lending decision process. A strong credit score signals responsible borrowing habits and reassures lenders of your ability to make timely repayments. Need more help with your Business Credit Score? Check out our articles for: Business Credit Score: Why It Matters & How to Improve It, How to Improve Your Credit Score in the UK, How to Check and Monitor Your Business Credit Score

2. Affordability
Lenders need to confirm that your business can comfortably manage loan repayments. While each lender has unique assessment methods, the following elements are commonly reviewed:

Cash Availability – Lenders analyse your bank statements from the past three to six months to assess your average daily cash balance and whether your business can sustain the loan’s monthly payments.

Profit or EBITDA – Many lenders consider your business’s profitability. Generally, they may offer loans up to five times your most recent EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortisation). Even if your business is not yet profitable, some lenders may base their decisions on turnover instead.
See our helpful article Understanding and Applying EBITDA in Financial Analysis, for more information.

Balance Sheet – A healthy balance sheet strengthens your application. Lenders often look for solvency, which means your assets exceed your liabilities.

3. Cash Flow
A steady and positive cash flow reassures lenders of your ability to manage day-to-day operations and repay the loan. They evaluate the consistency of money flowing in and out of your business each month.

4. Collateral
For certain loans, lenders may require collateral. Collateral refers to assets pledged as security, such as property, equipment, or inventory, which provide assurance to the lender in case of default.

While these are standard criteria, requirements vary between lenders. Some lenders cater to businesses with less than perfect credit or unique financial situations. So, even if you do not meet every traditional benchmark, there may still be options available for your business.

If you would like further information on requirements that may be required for a business finance application, take a look at our article Which Documents Do You Need for Business Loan Applications? or get in touch with us.

E-commerce, short for electronic commerce, is the buying and selling of goods and services over the internet. It’s the digital equivalent of traditional brick-and-mortar stores. Think of it as shopping online, but on a much larger scale.

How does E-commerce work?

E-commerce involves various online platforms like websites, mobile apps, and social media. Customers can browse products, add them to their virtual carts, and make secure payments using digital methods. Businesses then process orders, fulfil shipments, and provide customer support, often through automated systems and online portals.

E-commerce finance is a specialised form of funding that offers online retailers and merchants with the capital they need to either launch their businesses or take them to the next level. This type of finance can help address the unique challenges of running an online business, from managing inventory and enhancing customer experience to scaling operations and meeting growing demand.

At Portman, we offer a full range of tailored business finance solutions to align with your specific market position and objectives. Whether you’re looking to boost sales, improve customer service, expand your product range, or invest in key growth areas such as marketing, technology, or hiring new staff, we’re here to provide the financial support you need. Our flexible solutions are designed to strengthen your business to succeed in the competitive e-commerce market.

E-commerce income, often referred to as e-commerce revenue, is the total amount of money generated through selling products, services, subscriptions, advertisements, and other offerings via online channels. It represents a critical financial metric for any online business, serving as a key indicator of growth, profitability, and overall success in the digital marketplace.

Understanding and tracking e-commerce income enables business owners to evaluate their performance, identify opportunities for improvement, and make data-driven decisions to optimise operations. Whether you’re selling physical products, offering digital services, or earning through advertising and partnerships, e-commerce income reflects the effectiveness of your strategies and the value delivered to your customers.

E-commerce business operates across four main models. Each represent a different purchasing style that businesses and consumers interact within the digital marketplace.

The 4 main types of e-commerce include:

1) Business-to-Consumer (B2C) – This is the most common and familiar e-commerce model, where businesses sell products or services directly to individual consumers. Examples include online retail stores, streaming services, and food delivery platforms.

Examples include: Netflix, Amazon, ASOS, H&M, Apple, MVMT, Gymshark

2) Business-to-Business (B2B) – In this model, businesses sell products or services to other businesses. Common examples include wholesale suppliers, software providers, and professional services platforms.

Examples include: Alibaba, Knowde, Amazon Business, Primera, High Home, Mac Tools

3) Consumer-to-Business (C2B) – In this model, consumers will offer products or services to businesses. Freelancing platforms and influencer marketing partnerships are prevalent examples of C2B interactions.

Examples include: Fiverr, Airbnb, Amazon Marketplace, Online Influencers, Photographers

4) Consumer-to-Consumer (C2C) – This model facilitates transactions between individual consumers, often through third-party platforms. Examples include online marketplaces, auction sites, and peer-to-peer selling apps.

Examples include: Etsy, Facebook Marketplace, eBay, Vinted

These 4 e-commerce models include a variety of activities, such as drop-shipping, crowdfunding, electronic payments, online subscriptions, and the sale of digital products. Each model type plays a different role in the evolving market of online commerce, adapting to the many business objectives and changing consumer preferences.