Introducing CapEc Safe, Affordable Finance for E-commerce SMBs

19.04.22 01:09 PM By Ernest

Here at 3PLWINNER we pride ourselves on discovering new ways to assist our clients. The majority of our customers are SMB e-commerce sellers, and one of the biggest challenges we have seen them encounter since Covid has been the growing need for working capital. This is predominantly due to rising supply chain costs and longer/uncertain transportation periods. When we discovered that CapEc specialize in offering capital to e-commerce merchants, it seemed to be a great fit for the clients we had in common, and so a joint venture was born! But how can the partnership between 3PLWINER and CapEc help you?

What Do CapEc Do?

Firstly, be assured that we have carefully looked into what CapEc can deliver and can vouch for their credibility. No abstract entities or empty promises here. As such, their individual funding solutions are able to be tailor made for our clients.

CapEc base their offer only on your proven e-commerce activity, and as such they provide capital for the repurchasing of inventory only. This means they can analyze established product lines and previous online sales before any contract is entered into. Capital is offered for specific shipments, in a simple and transparent way. There are no hidden fees, and everything is presented clearly before you sign the engagement.

Most importantly, their injection of capital for inventory purchase will enable you to free up money that would otherwise be tied up in your supply chain. You’ll be able to utilize this in any way you see fit – from investing in new products to marketing expenses or salaries. Last but not least, they utilize their business connections to the benefit of their clients by acting to reduce and optimize their supply chain payments.

A tailor-made solution for Sellers – no matter their geographical location!

So, how does it work? CapEc provides working capital to e-commerce businesses for the purpose of purchasing inventory – by using the inventory as collateral. In today’s global marketplace, clients can be anywhere, so how does CapEc mitigate the risk of misuse of the funds provided? To prevent the possibility of the unscrupulous vanishing after receiving the capital, they pay the supply chain vendors directly. But that’s still only half the story – how do they ensure the ultimate repayment of the funds? This is where 3PL Winner fits in.

Those sellers who have been approved for a capital insertion from CapEc agree to enable  them to view their third-party logistics account. This means CapEc can oversee the amount of inventory released to further destinations – whether ‘fulfilled by Amazon’ (FBA) or ‘fulfilled by merchant (FBM) – vis-à-vis the balance that has been paid already. For example, if 30% of the inventory has already been paid for in order to commence manufacture, then 30% of the inventory can be transferred upon arrival to either an Amazon warehouse or to alternative destinations, with the rest directed to 3PL Winner.  


Closing The Cash Flow Gap

We know you have money – problem is that it's tied up in your supply chain! CapEc pays the supply chain on your behalf and enables you to repay the capital over an agreed upon period – starting after the arrival of goods at our 3PL. Let's suppose you predict you will sell your inventory over Seven months – and 30% has been paid already to the supplier in order to commence production – you can then request to spread the remaining balance over the required timeline – commencing only AFTER the inventory reaches the 3PL. This massively minimizes the period of time between paying for and selling the inventory. It’s not after you sell the specific inventory, but probably after you generated sales of the 30% that was directed to the Amazon warehouse upon arrival.

 The simple idea is that inventory that has already been paid for in the scheduled payments may be released to further destinations. As part of our joint venture,3PL Winner’s clients are granted a deviation of up to 15% on certain months.

Checkout the expected difference in your cash flow:

A Joint Venture With Double The Benefits

Fundamentally, this joint venture works because 3PL Winner & CapEc share the same core values. Above all else we’re united in creating value for SMB e-commerce sellers, and view our business relationships as a long-term connection. Together we constantly strive to improve our service and fine tune it to the requirements of our clients, and will always transparently exhibit the facts as we see them. 3PL Winner and CapEc – leave the logistics to us.