This is part 2 of 3 in the series Financing for Your Startup. Read the earlier parts below:
- Part 1: Initial Inventory Funding
- Part 2: Fulfilling Purchase Orders (current)
- Part 3: Growth with Inventory Financing
After you have funded your first run of inventory and built out your brand awareness, you’re going to start having people knocking on your door. Congratulations! You’ve survived the first stage of becoming your own boss. But in order to keep on taking the next steps, you’re going to need to be able to meet this demand and continually grow your business.
If you get your products in front of a distributor such as a local brick and mortar or even better, into larger retailers and established e-commerce stores, expect a huge spike in the amount of inventory requested in the form of a purchase order. A purchase order documents an offer from a distributor to purchase a quantity of goods at a determined price. Usually businesses are under a time restriction to get the goods to the distributor, but when they do deliver, it is a guaranteed payment for their goods. Sometimes, when receiving a purchase order, the business may not have the goods to meet the purchase order quantity and cannot afford paying for sourcing new goods out of pocket. Businesses in this situation often look for outside financing in order to produce the goods and fulfill the purchase order.
It’s extremely difficult for businesses to grow and scale since their working capital is often tied up in other departments such as marketing, sales, etc. There are a lot of financing options out there, but one of the most innovative is Kickfurther, a company that bases itself on meeting that demand while also providing benefits that other financing options do not offer. Kickfurther is a crowdfunding site built to help growing startups finance the spike in demand of goods.
Here are a few ways Kickfurther is unique from traditional financing:
Fundraising and Repayment
Businesses that use Kickfurther to scale actually set their own raise amounts, profit offered to individuals who support them, and the length of their agreement. Effectively businesses are able to determine their own cost of capital and repayment time period. Try doing that with a bank!
Kickfurther allows anyone 18 years of age or older to become a member of the Kickfurther community, giving the product businesses new exposure and engagement that no other financing options provide. A Kickfurther user is more than just a source of funds: they are the most valuable asset that brands have in marketing when it comes to crowdfunding marketing. By leveraging the users who funded their business, businesses gain access to the most trusted marketing channel, Word of Mouth referrals.
In order for a company to list their brand on Kickfurther, they must be an established company with an established product. This means that the product minimally has pre-orders or has completed a first production run. Kickfurther is about helping product business scale while connecting them with individuals looking to support small businesses who are also looking to get rewarded for their support.
If your business has a large purchase order looming and is looking for purchase order financing, check out Kickfurther. Your business could join over 300 successful Kickfurther funded businesses that have raised over $10M in financing. You can email Marco Vienna at Kickfurther (email@example.com) for more information if you want to become a user or raise money for your business.