Financing Growth at Different Stages in Business

If you’re in the eCommerce world and have any kind of inventory-based business, you know how growth can be a double-edged sword: the faster you grow, the larger the POs that you have to place and the more likely you are to slip into a negative cash flow. Ben Tregoe is the CEO and Co-Founder at BainbridgeGrowth.com, a company that helps eCommerce businesses with advanced financial modelling and evaluating different options for financing their growth. He joins me today to talk through some of the options and the pitfalls that eComm businesses can face as they grow.

Listen in as Ben shares some of the biggest mistakes that brands make when it comes to financing, as well as the importance of thinking well into the future when looking at all the options available. We also discuss the best financing options for every stage of the eCommerce business (including PO factoring, mezzanine debt, and the Kickfurther model) and the one area where many don’t focus enough when it comes to financing options.

You’ll learn:

• Ben’s background in eCommerce and financing. (3:45)
• Some of the biggest problems he sees with brands and lending. (9:05)
• Who are typically good candidates for bank loans. (14:10)
• The best financing options for each eComm tier. (18:30)
• How often Ben sees slowing growth as the best option for financing challenges. (25:30)
• How common PO factoring is and other similar options. (36:20)
• Ben’s opinion of the Kickfurther financing model. (40:40)
• What mezzanine debt is and when it makes sense to tap into it. (42:45)
• What Bainbridge does and who they are a good fit for. (47:45)
• Lightning round with Ben. (50:00)

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(With your host Andrew Youderian of eCommerceFuel.com and Ben Tregoe of BainbridgeGrowth.com)

What Was Mentioned

• Ben Tregoe: Website | LinkedIn
• The World of Asset Based Lending
• Debt Equity Financing Summary from ECF L.A.
• Kickfurther
• Aether Apparel
• eCommerceFuel Forum
• Fulfil.io
• One Click Upsell – Increase Sales 15%+ with Pre-and Post-purchase Upsells. (On average, Shopify users increase sales 15% immediately after installing the app!)

Image by Gerd Altmann from Pixabay.

Post by Andrew Youderian

Andrew is the founder of eCommerceFuel and has been building eCommerce businesses ever since gleefully leaving the corporate world in 2008.  Join him and 1,000+ vetted 7- and 8-figure store owners inside the eCommerceFuel Community.