As a small business owner, you may have done research on or taken advantage of the funding options offered by alternative finance providers. During the process, you may have heard some mention of referral programs but dismissed it because you thought it didn’t apply to you. However, you don’t necessarily have to be a banker or lender to participate in referral programs for small businesses. Many alternative lenders welcome referrals from small business professionals such as lawyers, accountants, business consultants, and more. If this piece of information piques your curiosity, it’s time to learn more about how your business could benefit from one of the many referral programs for small businesses.

Client funding solutions

Client Funding

It can be disheartening to watch one of your clients or business colleagues struggling to obtain funding. Whether you’re a lender that’s unable to provide traditional funding or a small business professional who has a client seeking funding, referral programs for small businesses can be the perfect solution. Not only do you get the satisfaction of helping your clients get the funding they need but participating in a referral program can provide you with a few other benefits as well.

Brand Advocates

For business professionals outside of the banking industry, helping clients obtain funding may be outside of their normal services. However, going the extra mile can go a long way in cultivating customer loyalty. Customers that feel you are truly interested in their success will not only continue to do business with you but they can become your biggest advocates. Positive word of mouth and online referrals can increase your customer base and boost your brand awareness. By participating in referral programs, you are investing in growing your own business as well as your client’s business.

Earn Commission

One of the most obvious benefits of taking part in an alternative finance referral program is getting paid. Commission structures may vary depending on the provider but commission on referrals to alternative finance companies can provide additional income.  Even though the Idea of earning a commission on referral sounds appealing, some business owners are leery of partnering with an alternative financing provider, fearing it might become too involved and take time away from their own business. 

Types of Referral Programs

The truth is that with most referral programs for small businesses, you can choose the level of involvement you’re comfortable with. There are three basic types of referral partnerships. The first is simply making referrals. This can be the best option for those business owners who want to help their clients get funding without having to take time away from their own business. 

The next level of referral program would be an ISO (Independent Sales Organization) program. With this type of program, you work with the alternative finance provider to sell your client the appropriate funding solution and deliver the completed funding agreement to them. While this is a bit more involved, it pays a larger commission.

 The third and most involved type of referral plan is platform partnerships. These programs are primarily aimed at banks and allow them access to the alternative finance provider’s application processing software. If the application doesn’t meet the bank’s criteria for approval but does satisfy the provider’s requirements, they pay a fee to the bank and silently provide the funding. The client gets the funding they need, the bank retains the client, and both the bank and the alternative funding provider generate revenue for their respective businesses.

business finance partnership

Capflow Referral Programs for Small Businesses

Now that you understand the different types of referral programs for small business and their benefits, all that’s left is to choose the right alternative funding provider to partner with. 

Capflow Funding Group is an alternative finance company specializing in factoring. Our referral program is open to businesses or professional individuals as well as banks. If you have business customers who require financing that falls outside of your services and think we could help, contact us today. Let’s work together to get your clients the small business financing they need.

If you’ve been hesitant about expanding your business into the eCommerce marketplace, the recent pandemic and resulting quarantine may have you rethinking that decision. Prior to the pandemic, online sales were projected to make up 22% of the total global retail sales by 2023, almost triple what it was in in 2015. The necessity to purchase goods online during quarantine could make that figure a reality much sooner. 

For those consumers not already shopping online, sheltering in place forced many to give the eCommerce marketplace a try. Once they’ve realized the ease and convenience, many will continue to do at least some of their shopping online, even when it is no longer necessary. And, of course, those already doing business online will continue to do so once life returns to normal. 

However, there has been much speculation as to what normal will look like. Will people continue to avoid crowded brick and mortar retailers for fear of contracting an illness? Will social distancing and working from home become the new normal? While there are no concrete answers to these questions, there’s no doubt that eCommerce is on the rise. It might be time to take another look at how your business could benefit from entering the eCommerce marketplace.

how to get funding for ecommerce

Expand Your Reach

Launching an eCommerce website can significantly increase your customer base. Your products will be available to those outside your local vicinity that wouldn’t normally have the opportunity to frequent your brick and mortar store. This can be especially beneficial for those businesses in a niche market. An eCommerce site can make your unique products readily available to consumers around the world. 

Boost Sales

Expanding your reach will, of course, increase your sales. However, marketing is just as important for your website as it is for your physical location. You’ll need to create a digital marketing strategy to promote your eCommerce business and establish an online presence. Become active on social media platforms, utilize online advertising such as Facebook or Google ads, and encourage customers to leave online reviews.

Lower Overhead

Entering the eCommerce marketplace can incur a significant upfront cost. However, it will be much less expensive than opening another physical location and will have the ability to reach a much larger audience. The daily operating expenses will also be smaller. An eCommerce website requires a much smaller workforce and eliminates the expense of a storefront, displays, signage, and more. In some cases, businesses transition completely to eCommerce, enabling them to increase sales and reduce their overhead expenses.

Remain Competitive

With an increasing number of consumers shopping online, entering the eCommerce marketplace is essential to remain competitive. Everyday consumers use computers, tablets, and phones to search for products they want. If your business doesn’t have an eCommerce website or you’re not taking the proper steps to promote it, many of those consumers will end up doing business with one of your competitors.

funding for business growth

Funding Your Entrance into the eCommerce Marketplace

Business expansion requires a substantial initial investment and branching out into eCommerce is no different. If your business is ready to make that move, CapFlow funding may be able to help. We offer invoice factoring and merchant cash advances and are dedicated to providing the short-term working capital you need to establish your presence in the eCommerce marketplace and remain competitive. We will work with you to find the best funding solution for your business. 

CapFlow Funding Group specializes in factoring and merchant cash advances., We also work with trusted partners to provide other alternative financing options that may be better suited to our clients’ business needs. We service many different industries with a variety of funding needs. Contact us today and find out how invoice factoring can help grow your small business.