How 8fig is helping e-commerce businesses maintain cash flow ahead of uncertain times

There's no denying that the continued growth of e-commerce has shielded digital retailers from the worst effects of the pandemic.

In fact, retail e-commerce sales have boomed in recent years, growing from $3.4 trillion in 2019 to an estimated $5.5 trillion in 2022, according to Statista.

Image source: Statista

However, while the pandemic may have been unproblematic (or even beneficial) for online businesses, it's important to remember they are not recession proof.

And unfortunately, the bad news is that it looks as if an economic downturn could be lurking just around the corner after Bloomberg's monthly survey of economists increased the odds of a recession in the next year to 50%, up from 30% in June.

As a result, -commerce owners must put measures in place to secure their finances and bolster operations as global trade begins to slow down and consumer confidence diminishes.

This means managing supply chains intelligently and optimising cash flows so that they have the buffer they need to weather the impending economic storm.

With that said, the inflexibility of traditional financing solutions does not give e-commerce businesses the adaptability they need to manage their inventory in real-time and change remittance schedules based on current events.

Of course, this is a significant issue during a recession, when supply chains are less reliable and it becomes harder to predict consumer demand accurately.

8fig, an e-commerce funding platform, is helping e-commerce businesses overcome these issues by providing the financial flexibility and analytical tools needed to weather any economic storm.

What is 8fig?

8fig provides equity free funding and supply chain management tools for e-commerce sellers.

The company's overarching goal is to act as a viable alternative to traditional financing solutions, most of which are unsuitable for rapidly scaling e-commerce stores.

"Commercial loans are traditionally rigid in structure and carry a high cost of capital, a model that is not conducive to e-commerce sellers’ development,” said Yaron Shapira, CEO at 8fig.

He went on to reveal that his company is “reinventing the way e-commerce sellers manage their supply chain”, helping them “scale with confidence”.

When a recession hits, 8fig could prove to be a powerful ally for e-commerce store owners, since cash flow is typically one of the areas hardest hit as consumers tighten their wallets and reduce spending.

Bespoke "growth plan"

Each e-commerce venture is unique. 8fig recognises this, which is why it offers each of its customers access to a bespoke "growth plan" designed to help sellers scale swiftly, regardless of market conditions.

In the onboarding process, 8fig will learn more about your business, such as historical sales data and information about the specific industry/vertical your company operates in.

Based on this data, 8fig's AI powered analytics tool will generate a tailor-made growth plan based on current and future supply chain stages to distribute capital injections at the most optimal time conducive to an e-commerce business’s growth.

This means that rather than giving companies a lump sum, 8fig releases funds in incremental disbursements as per their supply chain needs, funding up to 90% of costs across business operations such as inventory, freight, shipping, and marketing.

There is no cap on the total amount of funding a business can get, and the funds are equity free.

Consequently, practically everything within the 8fig platform is adaptable to the particular circumstances of each e-commerce store, thus allowing business owners to adjust cash flow injections and repayment cycles to move in line with their operations.

AI supply chain analytics

8fig isn't just a lending provider. The company also offers analytics insights through its free supply chain management tool, which means you can benefit from many of the features of the platform without ever borrowing a penny.

8fig utilises AI technology to create a visual representation of your supply chain line for each product in your inventory.

The platform details the stage that each product line is in, the typical expenses that are associated with each, as well as demand forecasting. Using this information, e-commerce owners can develop an effective growth strategy and make more informed decisions about where to allocate their resources.

In addition, 8fig ensures that it connects with e-commerce store owners by foregoing the typical business lingo associated with traditional financing providers and opting for a language that their users understand.

As such, the 8fig platform speaks to the user through e-commerce business terminology, such as supply chain metrics and "unit economics", making it easier to manage, protect, and plan their financial futures.

Non-dilutive flexible financing

Financing solutions such as angel investors and venture capitalists are dilutive, meaning that they require the business owner to give up a portion of their equity before they can access the funding.

This is often not ideal, as it can make it difficult to gain full control over one's business. Moreover, dilutive financing can also lead to tension and conflict between business partners, further complicating things.

8fig, on the other hand, is non-dilutive, meaning that it does not take any equity from its beneficiaries.

This enables business owners to maintain full control over their business and steer their ship in any direction they wish.

Moreover, 8fig is different from traditional lending providers in that you don't have to start paying back the loan the day after you receive the funds. This flexibility enables businesses to focus on their growth without adding additional stress.

Platform compatibility

8fig’s platform is compatible with a variety of top e-commerce platforms, such as Shopify, WooCommerce, BigCommerce, and Magento.

This makes it simple for store owners to share past revenues and potential sales, enabling businesses to get up and running quickly and easily, with no need for third-party integrations.

This also provides 8fig with the data it needs to generate a detailed and accurate report that can be used to assess each business's specific growth needs.

In summary

With an unsettling economic forecast, e-commerce owners should start bulletproofing their businesses now so that they will not only be in a position to maintain the necessary cash flow to break even, but to even scale during a recession.

8fig can help business owners achieve this by providing them with the funding, insights, and support they need to thrive even during the worst financial crisis.