8fig Ecommerce Funding and Financing Review: Is It the Right Choice for Your Business? 8fig Ecommerce Funding and Financing Review: Is It the Right Choice for Your Business?

8fig Ecommerce Funding and Financing Review: Is It the Right Choice for Your Business?

If you're an entrepreneur looking to take your ecommerce business to new heights, 8fig offers a unique solution through flexible, equity-free funding. Unlike traditional loans, 8fig provides continuous capital tailored to your business's specific growth needs, making it easier to scale without giving up ownership or accumulating high-interest debt.

8fig Raises $140M Series B Funding to Boost ECommerce Businesses | Financial  IT

The core of 8fig's platform lies in its adaptability. As an ecommerce business, your needs constantly change—whether it's securing more inventory, ramping up marketing efforts, or managing unexpected supply chain hiccups. 8fig provides a flexible funding approach that evolves alongside your store's demands. Connected to major ecommerce platforms such as Shopify and Amazon, 8fig integrates seamlessly with your existing operations, offering not just capital but also tools to streamline your entire business.

One standout feature is 8fig's Line Lab, which helps you plan every aspect of your product batches, from procurement to sales. This detailed breakdown gives you an in-depth understanding of your product costs, logistics, and marketing expenses. By visualizing your expenses and timelines, you can optimize your decision-making process. The platform also provides a mobile app, allowing you to monitor your store's performance and adjust your growth plan on the go.

Funding from 8fig isn't based on your past revenue alone. Instead, it’s allocated according to your business's future projections. You’re free to shift capital allocations if your plans change, like when inventory delays arise. Payback terms are also seller-friendly: you only start repayments two weeks after your goods land in the warehouse. With a fixed cost of capital between 6-10%, there's no compounding interest, giving you more predictability in managing cash flow.

One of 8fig's most useful offerings is its supply chain management tools. The platform goes beyond funding by providing software that helps you oversee your entire logistics process. This means that as your funding increases, so does your control over the moving parts of your business. You can track shipments, suppliers, and marketing budgets all in one place, giving you peace of mind that everything is running smoothly.

For entrepreneurs who don’t have access to angel investors or a stack of credit cards, 8fig bridges the gap by providing the financial and operational support needed to grow. It offers ecommerce businesses the opportunity to expand at a faster pace while managing risks more effectively.

In conclusion, 8fig delivers a powerful combination of funding and management tools that make it much easier to scale your ecommerce business. By focusing on both the financial and operational sides, 8fig ensures that you’re not just receiving capital, but also the tools to keep your business running efficiently. Whether you’re looking to break into new markets, increase your inventory, or simply need a financial boost to grow, 8fig gives you the flexibility and resources to make it happen. With 8fig, your business's future isn't limited by today’s funding constraints.

As ecommerce continues to evolve at a rapid pace, the financing solutions available to online businesses have expanded as well. Traditional lenders often struggle to keep up with the agility and cash flow demands of ecommerce, which has led to the rise of specialized platforms that cater specifically to this sector. Two of the most well-known players in this space are 8fig and Wayflyer, each offering a unique take on funding solutions. In this review, we'll delve into the key features, benefits, and differences between these two platforms, and help you decide which one might be the best fit for your ecommerce business.

8fig: Tailored, Flexible Funding for Growing Ecommerce Businesses

8fig stands out as an ecommerce-first platform that provides dynamic, equity-free funding designed to align with your business’s growth. Unlike revenue-based financing, 8fig’s model revolves around your inventory and cash flow needs, which makes it especially appealing to businesses looking for predictable capital to scale their operations without sacrificing ownership or equity.

One of 8fig’s key differentiators is its flexibility. It provides businesses with continuous access to capital based on their inventory projections. This ensures that you have funding when you need it most—whether it's to cover new inventory purchases, logistics, or expansion efforts. Additionally, 8fig doesn’t rely on revenue-based repayments; instead, they charge a fixed cost of capital, helping you plan your cash flow more effectively. The platform also integrates smart supply chain management tools that offer valuable insights into your business’s financial health, allowing you to forecast your sales and operational needs with more precision.

8fig’s funding model helps entrepreneurs retain full control of their businesses while gaining access to scalable growth capital. With its robust planning tools and tailored financing approach, 8fig is ideal for ecommerce businesses that want to optimize cash flow and strategically plan for future inventory needs.

Wayflyer: Revenue-Based Financing with Flexibility

In contrast, Wayflyer takes a different approach by offering revenue-based financing to ecommerce companies. This model involves purchasing a portion of your future sales, which allows you to secure funding in exchange for a percentage of daily revenues until the agreed-upon repayment amount is met. For businesses that experience fluctuating sales volumes, this repayment model can be particularly advantageous. If sales slow down in a given month, you’re not left with a fixed repayment burden—your payments adjust according to your revenue performance.

Wayflyer offers funding between $10,000 and $20 million, making it suitable for businesses of varying sizes. In addition to flexible funding, Wayflyer provides marketing insights and analytics to help optimize your advertising strategies. However, these analytics tend to focus more on marketing performance rather than supply chain management, which may limit their utility if your business’s main concern is inventory planning.

While Wayflyer’s approach offers flexibility, especially in terms of tying repayments to revenue, it may not provide the same level of long-term growth planning and cash flow management tools that 8fig does. However, if your primary need is funding for marketing or short-term operational needs, Wayflyer’s straightforward revenue-based model can be a quick and effective option.

Comparing Key Features of 8fig and Wayflyer

Both 8fig and Wayflyer offer unique advantages, but they cater to different business needs. Here's how they compare in a few key areas:

  • Application Process: Both platforms feature streamlined application processes. With 8fig, you simply connect your selling platform (e.g., Amazon, Shopify) and provide basic financial information. The platform’s AI-driven analysis generates a customized funding offer based on your inventory needs and cash flow projections. Wayflyer follows a similar path, where you connect your ecommerce and advertising platforms, verify your business information, and receive a funding offer within 24 hours.

  • Growth Planning: One of 8fig’s biggest strengths is its Growth Plan feature, which leverages sales forecasts and supply chain analysis to create a customized funding and payment schedule. This model ensures that you have capital when you need it without overextending your finances. Wayflyer, on the other hand, offers marketing-focused analytics that help you identify which campaigns are driving sales. While valuable for performance marketing, it lacks the detailed financial planning tools that 8fig provides.

  • Analytics: 8fig’s platform excels in offering data-driven insights that go beyond marketing. You can track your entire supply chain, project inventory needs, and optimize logistics costs, giving you a comprehensive understanding of how to grow your business sustainably. Wayflyer focuses more on marketing metrics, allowing businesses to track advertising performance across channels. While useful, it may not offer the deep supply chain analytics some ecommerce businesses require.

  • Time to Access Capital: Both platforms offer fast access to funds, with 8fig typically disbursing capital within 1-2 days after approval, while Wayflyer releases funds within 1-3 days. The speed at which both platforms operate is a significant advantage for businesses needing quick cash infusions.

  • Supported Channels and Countries: 8fig supports sellers on a wide range of platforms, including Amazon, Shopify, Walmart, BigCommerce, and Magento. It primarily serves US-based businesses, although non-US entities can qualify if they have a US subsidiary. Wayflyer, meanwhile, offers support for sellers on Amazon, Shopify, and Magento, and is available to businesses in a dozen countries, including the US, UK, Ireland, and the Netherlands.

Fees and Costs

The pricing structure of these two platforms also differs. With 8fig, businesses are charged a fixed cost of capital, typically between $6,000 and $10,000 for every $100,000 borrowed, depending on the assessed risk. There are no credit checks, and the funding is equity-free. Wayflyer, on the other hand, charges a transaction fee between 2% and 8% of the cash advance, as well as a daily remittance rate of 12% to 18% of sales, which can add up depending on your revenue flow.

How to Decide Between 8fig and Wayflyer?

The right choice between 8fig and Wayflyer ultimately depends on your business model and priorities. If you are focused on managing inventory and scaling your supply chain efficiently, 8fig’s inventory-driven, cashflow-optimized funding and supply chain tools provide a more comprehensive solution. On the other hand, if your main concern is securing quick funding to fuel marketing efforts, and you appreciate the flexibility of revenue-based repayments, Wayflyer might be the better fit.

For businesses looking for long-term growth and sustainable cash flow management, 8fig’s holistic approach may provide more strategic value. However, Wayflyer’s quick access to capital and flexible repayment model make it a solid choice for businesses with fluctuating revenues and short-term marketing needs.

Both platforms offer innovative ways to finance ecommerce businesses, so the decision ultimately comes down to which one aligns better with your specific needs and goals.