About The Author & Brand:
Jason Wong is the Founder of Pughaus where he invests in and advises leading DTC and SaaS companies. Jason is also the CEO of Doe Lashes, a DTC beauty brand selling comfortable eye beauty products.
Being able to finance your Shopify DTC brand while scaling can be really tough, especially if you don’t have any desire to give up equity. Cash flow is one of the main inhibiting factors of growth in e-commerce and every store has to deal with it. Here’s a basic scenario that outlines the cash flow challenge:
$100 Revenue – $30 COGS – $20 OPEX = $50 Profit
Being able to simply repeat the $100 in revenue takes a re-investment of 60% of your profit (COGS). The 60% profit reinvestment scenario here only gets you to maintain $100 in revenue and does not even take into consideration your paid marketing expenses. Growing beyond the $100 is significantly harder and takes up significantly more of your cash flow to do so.
And that is exactly why Wayflyer – a provider of revenue based finance – is one of the most important aspects to Doe Lashes’ growth. With revenue-based finance, that cash flow problem posed above is eliminated.
We were really struggling at Doe Lashes to continue hitting our revenue growth goals each month, finance our inventory and still have the required cash to scale our paid marketing budgets on Facebook, Instagram and TikTok.
With revenue based finance, we were able to use the cash to finance some of our basic administrative costs as well finance some of our larger inventory purchase orders. It was extremely fast, fair and flexible and something that I believe all Shopify DTC businesses should be taking advantage of if you are looking to scale your revenue and profit.
Revenue Based Finance is Fairer and More Flexible Than Most Financing Options Out There.
The best part about Revenue Based Finance, like Wayflyer’s, is that it’s based on your revenue, meaning that if your sales slow down or you decide to pull back on your marketing spend, your remittances slow down too.
Most non-dilutive financing options out there are not revenue-based and can pose serious risks on your business and liquidity if your sales slow down. Whereas, revenue based finance, like the kind that Wayflyer offer, is flexible, fair and pro-growth! Wayflyer wants your business to grow just as much as you do, which makes for an awesome partnership. They are also a lot more fair than the other options out there – no interest rates and no personal guarantees. They only charge just one simple transaction cost that allows your business to finally use its cash flow as a tool for growth!
Get Offers In Hours and Funds In Days.
Most revenue based finance providers are faster than traditional finance options. After simply connecting all of your platforms into their portal, it only takes hours to get offers and a few days to actually receive the funds. You just need to connect your store platform (Shopify, WooCommerce, etc), marketing platforms (Google, Facebook, etc.) and your bank accounts, and then you’ll be ready to grab an offer.
There is one simple cost and Wayflyer has some of the best rates around.
Rates amongst providers can differ. But I’ve found that Wayflyer are consistently competitive. There’s no cookie-cutter approach and everything is tailored to your business.
Wayflyer can provide your business with up to $20M in flexible funding all while allowing you to maintain 100% ownership, charging minimal costs and keep risk minimized. The team behind their technology is also top quality – they really get to know your business, your cash cycles and how you use the funds, which allows them to offer impactful insights and strategies that you otherwise wouldn’t have uncovered. It’s pretty incredible and something that all DTC brands should be taking advantage of – I wish Doe Lashes had been sooner, I’ll tell you that!
I’d highly recommend looking into Revenue Based Finance Options, like Wayflyer and seeing how their e-commerce financing programs can help to alleviate your DTC brand’s cash flow struggles. Check out Wayflyer here and tell them Jason from Doe Lashes sent you!
