The world of ecommerce is constantly evolving, and with it, so are the financing options available to businesses. In a landscape where traditional lenders struggle to keep up with the fast-paced nature of online retail, specialized financing platforms have emerged to meet the needs of entrepreneurs. Two of the most prominent players in this space are 8fig and Wayflyer, each offering unique approaches to funding.
On one hand, there's 8fig, an ecommerce-first funding solution which gives you access to dynamic financing that empowers you to double down on the strategies that are resonating with your audience. 8fig is not a revenue-based financing tool, but rather allocates funds according to your inventory projections and helps you optimize cash flow.
Wayflyer, on the other hand, is a revenue-based financing platform that presents a different option altogether. Wayflyer provides funding by purchasing a portion of your future sales up to an agreed-upon amount. Financing is tied directly to revenue, which allows you to access the capital you need while maintaining the freedom to run your business as you see fit.
In this blog post, we'll take a closer look at both platforms, examine their distinct benefits and drawbacks, and help you make an informed decision about which financing solution is right for you. So buckle up, grab some caffeine, and let's dive in.
What is 8fig?
8fig offers ecommerce businesses the opportunity to access the capital they need to accelerate their growth—precisely when it is needed most. Unlike traditional funding models that require you to give up a stake in your company, 8fig is an equity-free funding platform that allows you to maintain 100% control over what you've worked so hard to build.
One of the key advantages of 8fig is its flexible and cashflow-optimized financing model. Rather than relying on revenue-based financing, 8fig distributes funds based on inventory growth plans, when they are most likely to be beneficial. Each batch of inventory gets separate, independent funding. It's worth pointing out that payments aren't made as interest either, but rather as a fixed cost of capital.
8fig also provides powerful software tools to manage and streamline your supply chain operations. This is a major differentiator for the platform, as it doesn't just blindly hand out funds, but rather offers tangible tools that help you project how much capital you need so you’re not overextending your business.
With its innovative approach to financing and comprehensive suite of resources, 8fig is a compelling option for cash-strapped ecommerce businesses looking to pour some fuel on the fire.
What is Wayflyer?
Wayflyer is a revenue-based financing platform that provides flexible funding to ecommerce companies. Your payments directly correspond to your sales trajectory, which essentially means that if you have a bad month, you are not left on the hook for obligations you can't meet. Their funding options range between $10,000 and $20 million.
Their financing model is based on the revenue that you generate. They purchase a portion of your future sales in exchange for upfront funding, allowing you to purchase much-needed inventory or ramp up other investments.
Wayflyer also provides access to analytics and marketing experts that help you pinpoint effective sales strategies. While its overall flexibility makes Wayflyer a solid path to take for ecommerce businesses looking to scale their operations, there are some shortcomings.
8fig vs Wayflyer Features Comparison
The application process for 8fig is straightforward and streamlined. To get started, you first answer a few preliminary questions about your business. These questions are designed to help 8fig better understand your company and its financing needs. Once you've answered these questions, you can create an 8fig account.
Next, you provide access to your primary selling platform. This could be Amazon, Shopify, BigCommerce, or another platform that you use to sell your products. 8fig uses this to run an analysis that measures the health of your business. The analysis takes into consideration metrics like sales projections, revenue trends, and unit volume, among other variables.
In addition to your selling platform, you'll also need to provide access to your bank account. This allows 8fig to view your recent banking transactions and gain a better understanding of your financial history.
Using this information, 8fig's algorithm then predicts the amount of working capital you'll need and puts forward an offer. This offer is tailored to your specific business needs and takes into account your unique circumstances. After you've been approved and agreed to the terms of financing, you'll receive the funds in your account. It's a quick and easy process that allows you to access the funding you need to accelerate your business.
The application process for Wayflyer is likewise efficient, with just a few more steps to follow.
First, you sign up for an account by providing your email or Google account details. Once you have an account, you can begin your funding application.
The next step is to connect your shopping and ad platforms to Wayflyer. This is important as it allows the company to generate offers tailored to your specific situation.
After connecting your platforms, the third step is to verify your business. To do this, you'll need to provide confidential bank details and proof of identity. This step is critical as it ensures that the funds are disbursed to the right account and to a legitimate business entity.
Finally, once your business is verified, you can sign your contract and take receipt of your funds. They are typically dispersed within 1-3 days, depending on your bank's processing time.
8fig provides companies with custom Growth Plans that are designed to help them scale efficiently while still maintaining equity and healthy profit margins. To create these plans, 8fig relies on the expertise of their team of ecommerce and fintech experts, as well as a host of AI-powered algorithms.
One key aspect of their growth planning is sales forecasting. 8fig considers dozens of individual factors to predict how sales will progress during and beyond the duration of the Growth Plan. This allows entrepreneurs to make informed decisions about inventory, marketing, and other business strategies, while reducing risk.
Additionally, 8fig's Growth Plans focus on optimizing cash flow. By analyzing the health of a company's supply chain, they formulate a fine-tuned payment schedule that maximizes leverage while minimizing cash flow strain. This helps you free up capital that can be reinvested into growth initiatives, such as new product lines or marketing campaigns.
Wayflyer is similarly focused on helping companies with growth planning. They provide insights and recommendations designed to improve marketing efforts and drive more sales. Their all-in-one analytics platform allows you to see all your performance metrics in one place, which provides unbiased insights and helps you decide on the best path forward.
While both 8fig and Wayflyer provide growth plans and support, 8fig provides a more comprehensive solution to map out the exact capital you need to scale across your entire supply chain while having the flexibility to adjust your cash flow injections in the event of any changes in your supply chain.
As mentioned, both platforms give access to proprietary dashboards that slice and dice relevant data that is needed to make strategic decisions.
8fig allows you to get rid of tedious, unreliable spreadsheets. You can track all of your financial and sales data directly on the platform. These forward-looking tools let you forecast your sales, assess your revenue, and monitor your vital metrics.
The planning features enable you to map out batches of inventory and costs associated with freight and logistics. This ensures that you are not flying blind and have a firm understanding of where your business is headed.
You can also visualize your business schedule according to target dates, expenses, and more. This lets you see how well you are executing in relation to your projections, and empowers you to make adjustments and modify your approach as needed. This is valuable data you won’t find anywhere else.
The Wayflyer analytics platform is moreso focused on marketing performance. It allows you to compare channels, and identify where your advertising dollars are having the biggest impact. It brings data that might be spread across multiple different places into one centralized location, which makes it easier to spot trends and get a comprehensive overview of what's working, and what's not. However, there are plenty of other solutions that provide this level of data and analytics - it’s not totally necessary to have incorporated into your funding solution.
8fig vs Wayflyer Requirements Comparison
8fig supports sellers on Amazon, Shopify, Walmart, BigCommerce, Magento, WooCommerce, and Wix.
Wayflyer offers funding for sellers on Amazon, Shopify, Magento, and WooCommerce.
8fig is primarily tailored to US-based entities but can work with non-US businesses so long as they have a US-entity. Wayflyer has customers across a dozen countries, to leverage their Wayflyer Card— which can be used to fund your marketing spend—your business must be incorporated in the United States, the United Kingdom, Belgium, Ireland, or the Netherlands.
With 8fig, you need to have made $100k in annual revenue over the last 12 months.
8fig vs Wayflyer Capital Differences
The main use cases for 8fig and Wayflyer vary. 8fig specializes in providing funding for companies that require assistance with their supply chain and purchase orders. Their financial solutions help optimize cash flow and improve logistics, allowing businesses to increase their efficiency and profitability.
With Wayflyer, their focus is on providing revenue-based financing for a variety of use cases including inventory and marketing.
Time to Access Capital
8fig makes use of artificial intelligence to automatically assess the health of your business, providing access to capital much quicker than a traditional, tedious application process. You can access your capital within 1-2 days.
But this does not mean that it is a short-term, one-time solution. 8fig is focused on building long-term relationships with quality sellers, helping you achieve your revenue goals in a gradual and sustainable manner.
On Wayflyer, you can sign up and submit a request for funding in a couple of minutes. They then provide an offer within 24 hours, and funds are sent to your account within 1-3 days.
8fig provides continuous capital, meaning that as your performance keeps accelerating, so too does your ability to re-up on financing. Their interests are aligned with yours: achieving monumental growth year-over-year and helping you meet rising demand.
Wayflyer also provides top-ups on funding, requiring a financial review to be run before granting you additional funding.
8fig provides capital to both private label and wholesale sellers on Amazon. Wayflyer similarly has an Amazon-specific funding program, helping you overcome the hurdle of Amazon's delayed payment cycle.
8fig vs Wayflyer Fees and Pricing Comparison
When you work with 8fig, you gain access to everything on the platform, including their sales forecasting and financing tools. There is a fixed cost of capital of $6K to $10K for every $100K that is borrowed, depending on the calculated risk of your business. No credit checks are required, and financing is also equity-free so you keep a 100% ownership stake in your business.
Wayflyer charges a transaction fee to receive access to funding, which is applied to the cash advance amount. This is typically between 2% and 8%, and depends on factors such as the size and selling history of your business, as well as on the amount of funding you are seeking. To pay back the capital you receive, you must pay remittances, which are typically between 12% and 18% of daily sales.
How to Decide Between 8fig and Wayflyer?
If you are considering financing options for your ecommerce business, both 8fig and Wayflyer offer unique benefits. Ultimately, the decision between these two platforms will depend on your specific needs and goals.
If your business is focused on supply chain and purchase order management, 8fig is the best choice for you. With their emphasis on forecasting and cash flow, they can help you manage your inventory and ensure that you have the working capital you need to keep your business running smoothly.
On the other hand, if your business is looking for capital to fuel marketing, Wayflyer's revenue-based financing platform might be enough to do the trick.
In the end, it's important to thoroughly evaluate each platform and determine which one aligns with your objectives. Whether you choose 8fig or Wayflyer, both platforms offer innovative solutions to help you prosper and succeed in the dynamic, ever-changing world of ecommerce.
To learn more, read the full 8fig review here.