An underwear e-retailer uses Kabbage cash advances to buy inventory
January 10, 2012 by admin
Filed under Cash Advances
Selling underwear online is hardly cheap, says Jeffrey Bernstein, CEO of Chelsea Marketeers, an e-commerce operator that offers mens and womens undergarments via LuvMyUndies.com. You have to have a huge inventory, he says. You can have one single style in 60 sizes and five colors.
That means every time Chelsea introduces a new style, Bernstein will have to spend anywhere from $1,000 to $6,000 to stock up. Raising the money for a relatively small e-retailer such as Chelsea has become more difficult since the recession hit, making cheap credit from a bank harder to find, Bernstein says.
Thats why hes turned to Kabbage Inc., which launched in October 2010 and has been making cash advances of between $100 and $10,000 to online sellers, typically small and medium-sized merchants that sell on online marketplaces. Merchants use the loans to buy inventory. Kabbage funds operators such as Bernstein as well as others selling through eBay, Amazon and Yahoo. Retailers must pay back loans within six months, with fees determined by merchants selling and credit histories, along with customer ratings and income. Fees range from 3% to 7% if paid back within a month, and 10% to 18% if paid back within six months, Kabbage says. Loans average about $8,000 each.
Consumer Loan Quotes is available online, any time, when you need a fast payday loans or online cash advance until your next payday.
