Is proper funding the biggest challenge affecting your company’s ability to grow? Would an influx of capital enable you to make pivotal investments and reach new heights on your entrepreneurial journey?
Payability is a financing platform designed specifically for ecommerce sellers, and might just be the solution you are looking for to relieve a number of monetary pain points.
Let’s explore the details of this service and how it could potentially be leveraged to pour fuel on the fire of a successful (if not cash-strapped) online business.
What is Payability? 🚀
Payability is a resource that supplies flexible financing for online sellers. It satisfies short-term liquidity needs by offering fast funding through several different means. In addition to enhancing your cash flow with daily payments of funds that might be locked up in third-party marketplaces like Amazon or Walmart, it provides the opportunity to receive large advances that work similar to a loan.
The streams of capital that Payability provides empowers businesses like yours to bridge budgetary gaps and rapidly expand. As any seller knows, ecommerce is a cash-intensive endeavor. There is a constant need to shovel money into fresh units of inventory, digital advertising, software expenditures, and general overhead that is required just to stay afloat. Oftentimes, invoices are due before the profits you have earned from sales make their way to your bank account.
By generating accelerated payouts and cash advances, Payability delivers the growth capital needed to keep your operation moving forward.
How does Payability work? 🤔
Payability offers two core services: Instant Access and Instant Advance. Instant Access is the daily payments portion of their product, and Instant Advance facilitates lending.
Let’s break this down further.
Instant Access
This service allows you to get your funds funneled to you every day, even on weekends and holidays. It is a daily payout program that gives you expedited access to your earnings. Have funds being held for processing on third-party sales platforms that you desperately need now? This fixes that conundrum.
Here’s how the process works: Every day 80% of your previous day’s payouts are advanced into your Payability account. The remaining 20% is made available after the marketplace actually pays out.
In terms of fees surrounding this, Payability charges 2% of gross sales. However, sellers doing over $100k a month may qualify for custom discounts. It is important to note that this is a flat fee and not an interest rate. There is no compounding interest you need to pay off with Instant Access.
Instant Advance
As mentioned, Instant Advance provides cash lending. You can receive up to $250k in a lump sum to accelerate your business and put toward things like inventory and marketing. A typical Instant Advance amount is 75% to 150% of one month of sales revenue.
The rates for using the Instant Advance service involve a fee between 0.5% and 1% per week. You also pay back the advance with remittances. As you make sales, you’ll set aside a fixed percentage that is usually between 12% and 25%. You’ll continue to make these remittances until Payability receives back the total amount of future receivables they purchased from you in order to provide the advance.
If you pay this back in totality before 20 weeks is up, then you receive a rebate for each of the weeks you paid back earlier than expected.
This incentivizes you to ramp up your revenue as quickly as possible. And honestly, who doesn’t want that to happen?
Application process
Payability has a streamlined, automated method for applying for funding. It is essentially a three-step process, laid out below:
- Submit an application by connecting your marketplace accounts. This allows the health of your business to be evaluated.
- Get approved and receive offers in as little as 1 business day.
- Access your funds and spend on what your operation most needs to expand. Payability supports global payments to 180 countries in 38 currencies.
Payability Requirements 🔑
Generally speaking, to get approved for the services that Payability provides, you must be doing $10k a month in sales.
You can prequalify for Instant Access if you meet that requirement and have 90 days of selling history.
To prequalify for Instant Advance, you must be generating $50k in average monthly sales and have been in business for at least 9 months.
Payability Key Features 🧰
Fast approval
With Payability, things move quickly. The automated application process means that you can see funding options the same day. There is no messy paperwork, long wait times, or having to pitch to a room full of investors.
Rapid movement of funds
Through Instant Advance, you get marketplace payments daily and free same-day transfers. You can receive up to $250k with Instant Access in as little as a business day. Once approved, you can initiate transfers to your bank account to start putting your capital to use.
Payability Seller Card
Payability has its own card that you can use to spend on the items your business is seeking. You can make transactions anywhere that Visa is accepted. In terms of rewards, you can receive up to 2% cash back on every purchase. This is a smart way to maximize your funds.
Payability FAQs 🙋
Is Payability safe and legit?
Thousands of other businesses have utilized Payability since they were first founded in 2015. They have provided over $5 billion in total funding since that time.
Additionally, they take data confidentiality incredibly seriously. All information that flows through Payability is encrypted end-to-end with bank-level security.
Does Payability check credit?
No, there are no credit checks involved. Payability will however perform a standard background check of public records.
What marketplaces are supported?
Amazon, Walmart, Newegg, and Shopify are some of the platforms you can use Payability for.
Payability Pros ✅
- Gives you access to your funds now. Marketplaces where you are selling your products often hold your earnings for two weeks or more before paying them out. This is a crucial period of time that you could be putting this money to work. Payability frees up your funds and makes them available the next day.
- Dashboard to track finances. Payability has an intuitive, user-friendly dashboard that enables you to keep track of your funds at all times. You are equipped to never lose sight of what’s on the way to your bank account with detailed metrics that put you firmly in control of your payments.
- Relies purely on analytics. Going the alternative route of pitching to angel investors or venture capital firms to acquire financing comes with additional hurdles. It brings emotion into play and introduces the potential for human error. By using artificial intelligence and measuring your business based on statistical analysis, Payability allows for a fair appraisal of your operation and a bias-free avenue for funding.
- Top-notch customer support. There is a highly responsive team on standby to assist with any questions you have. Their onboarding specialists help to ensure the funding process is a smooth one.
Payability Cons ❌
- Stakes are raised. There is increased pressure and responsibility to produce enough revenue in order to cover fees associated with using the service.
- Consistent drip of payments. Remittances take a piece out of sales that must be accounted for in any analysis of cash flow.
- Need to have a game plan. Effective use requires strategic decisions about how best to deploy capital. You don’t want to throw good money after bad and double down on ideas that do not ultimately yield profits for your business.
- Involves commitment. There is no free trial, however there is a risk-free period during which you can cancel within seven days of using the platform. If you want to stop using Instant Access thereafter, you have to give a notice of 30 days.
Payability Pricing 💰
Payability charges 2% of gross sales for utilizing Instant Access. This is a flat fee.
Instant Advance involves a fee between 0.5% and 1% per week, plus remittance payments. Remittances are typically between 12% and 25% of future sales.
Final Thoughts 🕵️♀️
Payability is an all-in-one solution for improving cash flow. It can be relied upon to get your earnings paid out sooner, and also get a loan to kickstart growth.
Used wisely, this service can make it possible to execute strategic decisions that were previously not on the table due to financing constraints.
Whether you are launching a new series of products or expanding your advertising footprint, the capital that Payability makes available can be leveraged to reinvest into your business and clear the way for continued ecom success.
Apply for funding with Payability here 👈
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