e-Commerce Vendors Speed Up 3rd Party Payments by Factoring

e-Commerce Vendors Speed Up 3rd Party Payments by Factoring

Vendors that sell through Zulily, Amazon and other third party ecommerce sites may find themselves waiting 60-90 days for payment. Factoring speeds up cash flow by eliminating the wait on customer payments.

Invoice Factoring Speeds Up Payments for Zulily and Amazon Vendors

In 2016, Zulily announced that payment terms to vendors were being extended. Instead of net 30 terms, vendors selling through the ecommerce site now wait 60 days or even longer to get paid. For some vendors, waiting eight weeks (or even longer) from the time an invoice is issued or payment is accrued is a minor inconvenience; for others, it could be mission critical. When money is tied up in receivables and earned ecommerce payments and commissions, vendors may miss out on other opportunities to grow.

This is what’s known as “opportunity cost.” In other words, when a business decision to work with a 3rd party e-commerce platform like Zulily or Amazon means that a vendor must wait for payment before taking on other customers or bigger orders, this is the opportunity cost of that business choice. Factoring speeds up cash flow.  Invoice factoring is a financial tool that gives Zulily and Amazon vendors immediate access to the money owed to them by these e-commerce platforms (and other customers).

When a vendor factors a future payment or a customer invoice with Corsa Finance, they can receive a large percentage (as high as 93%) of the amount owed to them on the same day a customer invoice or e-commerce sales report is generated.  With low factoring fees, vendors that use factoring to reinvest in growth more quickly have the ability to generate more sales and also free up working capital to meet operating expenses and take advantage of supplier quick-pay discounts.

For Zulily and Amazon vendors, when factoring speeds up cash flow it could fast-track growth.

As a vendor, if you cannot replenish the inventory of raw materials needed to meet sales projects for future months because you must wait 60-90 days for an e-commerce platform payment to arrive, you could see sales slow or even stall. By ensuring that your cash flow is keeping pace with operating costs like inventory and payroll, you give your business the ability to increase production and maintain growth momentum.

Factoring is an ideal supply chain finance tool in that it allows manufacturers, distributors and other vendors the ability to leverage working capital that is technically on the books as an asset but would not be otherwise available to use.

Factoring speeds up cash flow, giving vendors immediate access to payments owed by customers, including third party e-commerce sites like Amazon, Zulily and similar platforms. Vendors who factor invoices can reinvest in their organizations more quickly and focus on growing their businesses instead of waiting on payments or chasing down customer invoices. Factoring even helps reduce organizational overhead by reducing the time and money that must be spent on accounts receivable activities.

We would be happy to provide you with more information about ecommerce invoice factoring and how it can help vendors speed up the payment cycle by eliminating the time between e-commerce sales and third party payments.

Request a free, no-obligation quote for financing by applying online and get answers to your questions in 24-48 hours, or even faster.