April 13, 2022

More growth through commodity financing

Last week I had a very interesting guest on our podcast: Nathan Evans.

He is the founder of fulfin and wants to help sellers grow with his product. Compared to other providers, fulfin specialises in e-commerce and understands the industry with all its peculiarities. During the development of the financing product, the needs of the sellers were always in the foreground for him. Fulfin knows how important a continuous stock is for merchants. To ensure this and prevent out of stock, the company offers flexible financing options.

For more information about Nathan and fulfin, you can listen to the podcast here. You'll also be getting detailed feedback from me about fulfin and the services it offers in the coming weeks. I'm doing a first small funding with Nathan and will tell you all the details soon. So stay tuned!

Why commodity financing makes sense and is important

To answer this question, you should first know one thing: Growth consumes cash. In order to meet the growing demand for your products, you need to increase your inventory. In our case, this means that faster growth means higher stock levels.

So you need commodity financing when your own cash flow is not sufficient to finance your inventory. But when is that the case? There is a wonderful article by John Mullin and NeilC. Churchill entitled"How fast can your company afford to grow". It explains how you can finance strong growth from your own cash flow. If you do not have enough cash flow to increase your inventory, then you should consider commodity financing. However, before you rush into financing, you should be aware of all the consequences. In some cases, it makes sense to accept slower growth.

Many greetings from Mannheim

Your Felix

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