Business is 11 months old needing money for inventory. Banks won’t bat an eye until we’re 2 years old, managed to negotiate funding with a capital lender for a fixed fee. Is this a good deal? Are there better alternative for inventory purchasing?

Quick points: Ecommerce store making $90-100k/month in revenue, I negotiated a $50k capital loan with a fixed fee of 6% and remittance of 11% of daily sales, which means we will repay the loan daily at 11% of our sales, and end up paying $3000 in fees. There's no interest charged monthly, it's just the 6% fee. Money is deposited in our bank account (unlike Clearbanc's Inventory program).

We need capital to purchase seasonal inventory but we have to pay it in full before it's shipped to us. Trustworthy supplier, transit just takes time as it comes from overseas.

This sounds like a good deal to me, but is it actually? I've talked with my bank and credit unions about a line of credit, but they aren’t interested so far. So, it's this or nothing. I tried LendingTree and Torro, the APR was ridiculous. Credit card is maxed out, but paid in full every month.

I'd like to hear from more experienced business owners, if there are better alternatives, or what should I look into to secure better funding for inventory/cash flow/payroll as a new business/business owner and as my company grows 🙂 Thanks!

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