Quick answer
Online stores usually borrow to pay overseas suppliers before stock ships, build inventory ahead of Black Friday and Christmas, fund advertising that brings in sales weeks later, and cover warehouse or fulfilment costs. Revenue-based finance and lines of credit suit fluctuating sales, trade or import finance covers supplier deposits, and term loans fund bigger steps. Lenders assess platform sales data, payout history, margins and return rates.
Key points
- A typical import-led online store pays for stock months before it's sold, so growth itself is what drains the bank account
- Many lenders now connect directly to store platforms, payment gateways and accounting software to assess sales, instead of relying only on financial statements
- The card surcharge ban from 1 October 2026 covers eftpos, Mastercard and Visa online as well as in store, though PayPal and buy now, pay later sit outside it
- Consignments valued over $1,000 attract GST and any duty at the border, which is cash you pay before the stock earns anything
Here’s the uncomfortable maths of selling online. You pay a factory deposit in July, the balance before the container leaves in August, GST and freight when it lands in September, and a fortune in ads during November. The customers pay in late November and December, and some of them send things back in January. Every extra order you take on stretches that gap further.
That’s why so many profitable online stores are short of cash. It’s also why ecommerce finance looks different from finance for a shop with a front door.
Why do growing online stores run short of cash?
Take an import-led store selling homewares. A simplified timeline for one large stock order might look like this:
| When | What happens | Cash |
|---|---|---|
| Week 0 | Purchase order placed, deposit paid to supplier | Out |
| Week 6 | Balance paid before goods ship | Out |
| Week 11 | Goods arrive; freight, GST and any duty paid; 3PL receiving fees | Out |
| Weeks 12–20 | Ads run, orders ship, payouts arrive from the platform and payment gateways | In, gradually |
| Weeks 20–24 | Returns and chargebacks processed | Some back out |
On those numbers the store may carry the full cost of the order for three to four months. Double the order to meet demand and the gap doubles too. The cash flow gap calculator helps you put dollar figures on your own cycle, and our glossary entry on the working capital cycle explains the idea in more depth.
How do lenders assess an online store?
Banks are a sound first option for an established ecommerce business with two years of profitable accounts, solid tax lodgments and property or other security. When you fit their criteria, they’re usually the cheapest money available, and their offer is worth serious consideration.
Many online stores don’t fit that mould. They’re young, growing quickly, reinvesting every dollar, and sometimes run from home. For them, a newer group of lenders has emerged that assesses the business through data rather than paperwork. Expect them to look at:
- Platform sales history. Monthly net sales from your store platform and any marketplaces, usually for six to twelve months.
- Payout patterns. How quickly money reaches your bank from payment gateways, PayPal and buy now, pay later providers, and whether any of them hold a rolling reserve against your account.
- Margins after the real costs. Product cost, freight, fulfilment, platform fees, payment fees and ad spend. A store with high revenue and thin margins is a weaker borrower than its turnover suggests.
- Returns and chargebacks. Net sales matter more than gross.
- Concentration. A store that relies on one marketplace, one ad channel or one hero product carries more risk.
If your bank isn’t ready to back your next order, tell us what you’re buying and when. The enquiry won’t touch your credit file.
Which finance fits which ecommerce problem?
Paying overseas suppliers. Import finance or trade finance settles with the supplier for you, then allows an agreed window to sell the goods before the facility is cleared. It works best for repeat orders from established suppliers.
Smoothing uneven sales. Revenue-based finance is repaid as a share of sales, so repayments shrink in quiet months. It’s quick and doesn’t need security, but the cost is usually a fixed fee. Use the factor rate calculator to turn that fee into something you can compare.
Ongoing flexibility. With a business line of credit you can draw for stock or ads and repay as payouts arrive, paying only for what you use.
Platform-linked lending. Some payment providers lend to their own merchants, with repayments taken from your sales. PayPal Working Capital is one example; our PayPal profile sets out how it works as at October 2026.
Bigger steps. Moving into a warehouse, building your own fulfilment, or launching a new range may suit a term loan, possibly secured against property for a larger amount and longer term.
Our page on funding marketing and advertising goes deeper on borrowing for paid acquisition, including when it’s a bad idea.
Three details specific to selling online in Australia
The surcharge ban applies to your checkout too. From 1 October 2026, the RBA’s reforms ended surcharging on eftpos, Mastercard and Visa debit and credit cards, online and in store. American Express, PayPal and buy now, pay later services sit outside the ban. If you used to add a card fee at checkout, that cost now sits in your margin, and lenders will see the effect in recent trading.
Imports over $1,000 cost cash at the border. Under ATO rules, GST on goods valued at $1,000 or less sold to Australian consumers is generally collected by the overseas seller or the marketplace at the point of sale. Your own stock consignments above that value attract GST, any customs duty and clearance charges at the border. GST registered businesses can usually claim the GST back, but only after you’ve paid it and lodged your BAS, so build it into your cash forecast.
Peak season starts earlier than you think. Black Friday, Cyber Monday, Click Frenzy and Christmas shipping cut-offs compress a large share of annual sales into a few weeks. To have stock in a warehouse by early November, many stores need to pay suppliers in August or September. That’s the moment to have funding arranged, not the week before the sale.
What to prepare
Half a year or more of statements from the business account; read-only access or reports from your store platform, payment gateways and accounting software; supplier invoices or purchase orders; an outline of your cost per order, including fulfilment and ad spend; and your BAS lodgments and ATO account statement. For bank finance, add two years of financial statements.
Example: an activewear brand preparing for November
An invented example for illustration. A Gold Coast activewear label trades mainly from its own site, with a single marketplace on the side. Net sales are about $95k a month, and last November sales tripled. This year the founders want to place a $160k order with their overseas manufacturer, paying 30% upfront and the rest before shipping in September.
The bank likes the business but wants the year’s accounts, which won’t be ready until December. The founders use import finance to pay the supplier balance, with 120 days to repay, and keep a small revenue-based facility for a planned ad push. Because they’ve modelled GST and freight on landing, there’s no surprise in September. The stock arrives in time, the November sale goes well, and the import finance is cleared by early January from payouts.
Funding your next order, launch or peak season
Online selling rewards speed. The store that has stock when the customer clicks wins the sale, and having finance lined up ahead of the order often decides whether that store is yours.
When you’re ready, tell us about your business. The enquiry asks a few simple questions and takes around a minute, and making it causes no credit check. Your application isn’t fired off to dozens of funders, so your inbox and phone stay quiet. Someone who understands ecommerce cash cycles reads your details and calls you directly. Please give accurate figures for net sales, margins and the amount you need, because that’s what lets us find a fit on the first attempt.
Frequently asked questions
Can an online store get a business loan without financial statements?
Often, yes. Many fintech lenders assess online stores using bank statements and data from the sales platform and payment gateway. Larger loans and bank finance will still usually need financial statements and tax returns.
What is revenue-based finance for ecommerce?
It's an advance repaid as a percentage of future sales, so repayments rise in strong months and fall in quiet ones. It's quick to arrange but usually costs a fixed fee rather than interest, so compare the total dollar cost with a line of credit before choosing.
How do I finance a deposit to an overseas supplier?
Trade or import finance can pay the supplier on your behalf and give you time to sell the goods before repaying. A line of credit also works for smaller orders. Lenders will want the supplier's details, the purchase order and your shipping timeline.
Do lenders care about my return rate?
Yes, particularly in categories such as fashion where returns are high. Gross sales can look impressive, but lenders focus on net sales after refunds and chargebacks.
Can I borrow to fund advertising?
Yes. Unsecured loans and credit lines can be used for general business purposes, including paid ads. Lenders will be more comfortable if you can show your historical return on ad spend and how quickly ad-driven sales turn into cash.
Is a business loan from my sales platform a good option?
It can be convenient because the provider already sees your sales, and repayments are often taken from payouts automatically. Check the total fee in dollars and the minimum repayment rules, and compare at least one alternative before accepting.