- Yardline Capital provides e-commerce funding for online sellers looking to build or expand their online stores on e-commerce platforms like Amazon, eBay, Shopify, Etsy, Flippa, and others.
- They offer digitally-focused tools and services to help e-commerce sellers create and grow their retail services.
- E-commerce entrepreneurs or small business owners can benefit from Yardline Capital’s financing to build a new online store or expand market reach through new services or increased marketing efforts.
What is Yardline Capital?
Yardline Capital is an e-commerce financing platform that offers growth capital for online businesses. The company bills itself as a capital-as-a-service (CaaS) platform, which focuses on providing funding to startups and online businesses quickly by building partnerships with e-commerce institutions through efficient technology, and continuing to provide e-commerce selling businesses with more financing and business consulting as they need it down the line.
Beyond being a provider of growth capital for e-commerce sellers, Yardline Capital also provides business insights that allow business owners to compare themselves to others in their marketplace or industry, as well as the Yardline Seller Success Program, which helps to identify ways the business can grow. They’re committed to helping their customers grow and expand, and they bill themselves as a growth partner for e-commerce sellers across a variety of platforms.
Like many profitable startups, Yardline Capital has gone through quick changes since Ari Horowitz and co-founder Tomo Matsuo founded it in 2020. In 2021, Yardline Capital was fully integrated into Thrasio, which provided its initial backing. Like other aggregators, Thrasio’s line of business is acquiring fulfillment by Amazon (FBA) companies, and this has given them plenty of insight into what makes a good e-commerce seller tick. In 2022, e-commerce software company Swiftline purchased Yardline Capital from Thrasio. This isn’t abnormal for a fintech company, and it has helped Yardline expand its service offerings to both its partners in the e-commerce industry and financial recipients.
How Does Yardline Capital Growth Financing Work?
Yardline Capital provides growth financing and capital solutions to e-commerce businesses by partnering with e-commerce platforms and e-commerce marketplaces to embed their proprietary, turnkey CaaS technology directly onto the platforms for e-commerce sellers to use. Basically, Yardline Capital connects these businesses with e-commerce sellers to provide funding to help the sellers grow their businesses, as well as dashboards and other tools to provide them with business advice. E-commerce businesses can apply through Yardline Capital to receive funding and support from direct capital providers and e-commerce platforms.
Yardline Capital bills itself as a growth partner for its e-commerce clients. They use data science and proprietary technologies to provide personalized recommendations to e-commerce businesses based on how they compare to other e-commerce sellers in their market. Yardline also provides business consulting services as a standard part of their financial services offerings to e-commerce sellers, helping them identify growth opportunities in all aspects of their business operations.
Pros and Cons of Yardline Capital for E-Commerce Businesses
As with any financing, it’s important to consider the pros and cons of Yardline Capital before committing to their platform.
- Funding can be used for any reason and is non-dilutive, meaning you don’t give away any ownership or equity in your company.
- Three-minute application and quick approval process in as little as one business day, plus funding in as little as 24 hours.
- It provides you with business optimization tools and the Yardline Seller Success Program to help identify ways you can grow.
- E-commerce only leaves out brick-and-mortar businesses that have an online component.
- A strong focus on Amazon sellers may make those who sell on other platforms feel left out.
- Must make a minimum of $20,000 in monthly revenue.
What Type of Small Business is Yardline Capital Best For?
The number one qualification for a small business to get funding through Yardline Capital is that they be an e-commerce company, selling goods on an e-commerce platform. While Yardline Capital claims to cater to all of the online shopping marketplaces available, including Shopify, Etsy, and eBay, they have a strong focus on Amazon sellers. If you own a fulfillment by Amazon (FBA) company and are looking to expand your product offering or increase your marketing, Yardline Capital may be a good choice for you. Also, you have to make at least $20,000 per month in revenue, so some online sellers who are just starting out may not qualify for funding from Yardline Capital.
How Yardline Capital Compares to Other Financing Options
Yardline Capital is somewhat different from other small business loans in a number of ways. First, only e-commerce and online-only businesses can apply for funding from Yardline Capital, so brick-and-mortar businesses or companies that don’t sell physical products don’t qualify. Secondly, they work with platforms and marketplaces like Amazon, Etsy, eBay, and Shopify to provide funding to sellers on those marketplaces.
Another way that Yardline Capital differs from traditional financial providers is in how involved they get with their financing recipients. They are committed to helping e-commerce sellers increase their profitability and provide coaching and business insights to help them grow. Their Yardline 50 Business Assessment (Y50BA)™ compares your business against other sellers in your marketplace through several metrics, including:
- Listing quality
- Business costs
- Inventory management
They also provide each of their e-commerce financing recipients with a Seller Success Manager as part of their Yardline Seller Success Program. This expert works as a consultant with the e-commerce business to identify tactics to help the business with sales, operations, and other aspects of a profitable e-commerce business.
Unlike many traditional business financing options, Yardline Capital’s application process is all-online and is very easy to fill out. They boast that it takes three minutes to apply and that you can receive approval in as little as one business day. Funding can be quick, too—you can have the money in your account within 24 hours. You can apply for up to $1 million, and with an automatic repayment system, you can set it and forget it.
Yardline doesn’t limit what you can use your funds for, either. You can use your financing from Yardline for:
- Expanding your business to a new product line
- Increasing marketing and advertising, especially on social media
- Purchasing inventory, which can be particularly helpful when the supply chain is stressed
Finally, Yardline Commerce differs from other common funding options for startups, such as equity financing, venture capital, or crowdfunding, in that it’s non-dilutive, meaning they don’t take any equity or ownership of the business when they provide you with funding.
Nav’s Verdict on Yardline Capital Growth Financing
If you’re an e-commerce seller whose entrepreneurial dream is to expand your online business and you’re looking for help both in terms of financing and business advice, Yardline Capital may be a good choice for you. Ultimately, e-commerce sellers who use Yardline Capital will be aiming to sell their business to a bigger aggregator, and this may be the step to help make your online business more attractive for that final sale.
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This article was originally written on June 9, 2022.