Scaling your technology business can be challenging. And raising funds to aid in that growth can be one of the most taxing aspects. Without proper funding, you can struggle to invest in growth strategies like expanding your product line, increasing your marketing efforts, and hiring additional talented individuals.

Identifying financial resources to help fuel your expansion can ensure you get and stay on a growth trajectory.

Technology company loans work differently depending on the type of loan you are applying for, but there are a few common denominators as follows.

Get started: Once you know who you want to get financing or funding through, you’ll want to take the next step. This will usually entail applying or creating an account or profile.

Receive approval: Once you have submitted all necessary information you will wait for approval. Approval times can vary.

Use funds wisely: Some loans or funding will have intended uses or spending restrictions. However, some loans will not have spending restrictions. Make sure you take out the right kind of loan and invest it wisely.

Any tech business can benefit from tech business financing. Here are a few examples of the types of businesses that may apply.

Refurbishers: Refurbishers refurbish used tech equipment. They acquire the equipment, repair it, and sell it to the public.

Resellers: A reseller buys tech equipment, usually from a wholesale company, and sells it to consumers.

Reverse logistics partners: A reverse logistics partner moves goods from the end user back to the manufacturer. They may deal with returns from retailers and components for refurbishing and remanufacturing. The products are then resold or disposed of.

Computer manufacturers: These are companies that manufacture computers, software, and electronic devices.

Repair Companies: Tech products often break down and because they are so expensive, most will want to get them repaired rather than buy a new one. Repair companies stand to make a lot of money in the industry.

Inventory can be expensive to stock resulting in a disruption of cash flow. In addition, it may take a while to receive funds after inventory sells. Ensuring you have plenty of inventory on hand is essential to take advantage of every opportunity to make a sale. There are several benefits of financing your inventory, including:

• Expand selection
• Purchase in bulk for discounts
• Improve cash flow
• Keep up with seasonal demand
• Take advantage of every opportunity to make a sale
• Reorder inventory before you sell out

Business decisions should always require a comparison of pros and cons. The pros and cons may vary depending on your business, but here are some general pros and cons of inventory financing for the tech industry.

Pros:

• Access funds to buy inventory: If your tech company sells inventory, having stock on hand will be necessary in keeping your business afloat. Inventory funding provides you with the funds you need to buy inventory. It’s also helpful if you want to expand your product offerings.
• Easier to qualify for than a traditional loan: Backers or lenders often pay suppliers directly for inventory or use the inventory as a collateral. If you default, they can sell off your inventory to recoup their funds. Therefore, they may be more willing to approve applications for a lower cost.

Cons:

• Only cover inventory: Inventory loans and funding can only be used for inventory. If you need funds for other business operations you will need to use a different type of loan.
• Increase costs: While you can find affordable inventory funding, it will still cause your expenses to go up. You will want to account for the additional cost to ensure your business is profitable.

The recipe for growing a successful business has so many different components. It’s easy to focus on the large components, but don’t forget about the small ones too. It’s often the small personalized touches that your customers establish loyalty. Here are some general tips that can help grow your technology business.

• Differentiate your product
• Create a product (when possible)
• Hire good and well-qualified help, even if it costs more
• Focus on your vision
• Dive in, but stick to the plan
• If you fail, try again
• Offer support for customers and encourage feedback

The financing option that is best usually is the one that is most cost-effective. Remember, that time is money so you may decide it’s worth it to pay more for an expedited process. Kickfurther funds up to 100% of your inventory costs on flexible payment terms that you customize and control. With Kickfurther, you can fund your entire order(s) each time you need more inventory and put your existing capital to work growing your business without adding debt or giving up equity.
Get funded today.

Inventory financing leverages the resources of a financing partner to pay for inventory production. Funding can often be customized to address your business’s exact manufacturing, shipping, and sales timelines. Some providers require no payment on goods until the inventory sells. This works well with natural cash flow cycles.

The products produced typically act as the collateral for the financing, meaning that if the business reports an inability to repay the funding, the inventory can be sold to cover the debt.

Inventory financing is especially valuable to any business experiencing a significant delay between paying for inventory and receiving payment from future sales. It is also helpful for businesses that want to receive volume-based discounts by placing larger orders to support all of their sales channels. This works best when done on a quarterly or other regular basis and can help to prevent the stock-out issues that stifle growth.

Kickfurther funds up to 100% of your inventory costs on flexible payment terms that you customize and control. With Kickfurther, you can fund your entire order(s) each time you need more inventory and put your existing capital to work growing your business without adding debt or giving up equity.

Why Kickfurther? 

No immediate repayments: You don’t pay back until your new inventory order begins selling. You set your repayment schedule based on what works best for your cash flow.

Non-dilutive: Kickfurther doesn’t take equity in exchange for funding.

Not a debt: Kickfurther is not a loan, so it does not put debt on your books. Debt financing options can sometimes further constrain your working capital and access to capital, or even lower your business’s valuation if you are looking at venture capital or a sale.

Quick access: You need capital when your supplier payments are due. Kickfurther can fund your entire order(s) each time you need more inventory.

Kickfurther puts you in control of your business while delivering the costliest asset for most CPG brands. And by funding your largest expense (inventory), you can free up existing capital to grow your business wherever you need it – product development, advertising, adding headcount, etc.

#1. iRecertify, LLC

As a rapidly growing refurbisher, reseller, and reverse logistics partner, iRecertify delivers premium refurbished technology. They are committed to providing consumers with advanced technology for a fraction of the price without compromising quality. iRecertify has completed several successful co-ops with Kickfurther. Here are some of the results.

iRecertify 2nd Apple Co-Op: Raised $52,699.08 in 2.1 months

iRecertify Refurbished Beats Co-Op: Raised $40,168.40 in 1.7 months

iRecertify Big Apple Deal: Raised $230,127.48 in 2.9 months

#2. Purism, SPC (Social Purpose Corporation)

Purism offers “security by default” in both hardware products and software services. They specialize in retailing branded, security-focused laptops to researchers, technologists, digital artists, lawyers, journalists and more. Their target market is privacy and security-minded businesses and families. Purism has completed several successful co-ops with Kickfurther. Here are some of the results.

Purism Librem by 15: Raised $143,142.50 in 3.3 months

Purism Librem 15 August 2019: Raised $230,790.00 in 4.5 months

Purism Librem 13 September 2019: Raised $130,798.80 in 3.1 months

Now that you have more education about how to secure affordable inventory funding for your tech business, you are ready to take the next step. Take your time and always read the fine print.

Receive affordable inventory funding for technology companies within one business day. . .create an account today!

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