Ask the Collective
The questions independent drinks founders ask most — answered. Distilled from years of community knowledge so the good stuff never disappears in the feed again.
What e-commerce funding options and rates are available for drinks brands with D2C and Shopify revenue?
Members have identified a handful of specialist e-commerce funding providers that lend against Shopify and Amazon revenue. Here are the options discussed: - **Wayflyer** — mentioned for PPC spend funding; appears to be an active choice for members - **Outfund** — flagged as a potential option (member sought experiences with the provider) - **Shopify Capital** — offers lines of credit at approximately 10% interest - **A 6% line-of-credit product** — one member reported accessing this rate to fund D2C and Amazon revenue, paid out of Shopify and Amazon sales; they asked if others had seen better rates Members noted that the 6% option "seems like a good deal" relative to alternatives, though Shopify Capital's 10% rate is also available. No other providers or rates were detailed in the discussion. The group appeared less familiar with these options overall (one member requested a "101"), suggesting this is an emerging area of interest for the community.
What are the key considerations when evaluating e-commerce revenue-based financing versus traditional invoice financing for drinks brands?
Revenue-based financing (RBF) can work for e-commerce sales, but members' experience suggests it's only worthwhile under specific conditions. The headline APR rates (3–4%) are misleading because repayment is fast; the effective cost is much higher once you account for the quick payback schedule. **When RBF makes sense:** - Only viable if D2C/e-commerce represents 25% or more of your sales and you're actively cash-strapped - Works best when traditional cash flow is tight and you need immediate liquidity **When traditional invoice financing is better:** - If D2C is a smaller portion of revenue (e.g. 5%), invoice financing on larger B2B orders is more cost-effective - Particularly attractive if your B2B customers (grocers, etc.) have long payment terms (e.g. 90 days); the financing cost is justified by the extended payback period - Offers better economics on larger invoice values **Key caveat:** The quoted APR on RBF deals is not directly comparable to traditional financing APR because of the compressed repayment timeframe. Crunch the actual numbers on repayment speed and total cost before committing.