Published on 22nd September, 2022
Grow faster with Growth Capital
At Lenkie, our Growth Capital is a fast and flexible alternative funding option that’s tailored for your business. You can spend it on accelerating your growth by purchasing new inventory, marketing, expanding, or smoothing your cash flow.
We can help you grow faster - here are several key benefits of working with us:
1. Speedy application process
Applying is quick and frictionless. Complete your application in under 3 minutes and start spending your capital in just a matter of days.
2. Simple fee
We only charge a flat fee (starting at 5%) so there’s absolute clarity in the total repayment amount.
3. Quick access to capital
You’ll be able to access your capital without any delays. From now on you’ll be able to immediately purchase inventory at scale. Lenkie provides you with the confidence to order in bulk which will further reduce your costs.
Cost vs. Return
For most businesses, you need money to make money and this is the case for e-commerce sellers. Inventory is purchased and turned into profit and in order to increase their profit, a seller must increase their inventory. They can do so in 2 ways:
1. Use their existing cash from sales to buy new inventory
2. Borrow to buy inventory at scale and use the revenue to pay off the loan
With the first method, you could buy two goods at £200/each, resell them for £300/ each, then buy 3 goods from the profits, sell those, and so on...
However, this is a time-intensive process, and makes growing your business more challenging when you don’t have access to enough inventory to sell. Also, this small, incremental growth constrains your cash flow, leaving you with very little to spend on marketing or extraneous costs.
With an injection of Growth Capital, Lenkie can fund up to £250k of inventory growth for your business!
If you started with a loan of £10,000 and bought 50 goods for £200/each, then resell them for £300/each, you would make £15,000. You'd repay Lenkie the £10,000 + flat fee (6%) over the course of 6 months, leaving you with profits of over £4,400. Plus, during this time, you'd be able to recycle the cash multiple times.
Cash Conversion Cycle
An important metric that should be considered when applying for alternative funding is the Cash Conversion Cycle. Essentially, it represents the time it takes for a business to convert its inventory investments into cash.
Growth Capital enables you to use your profits to purchase more inventory, thus accelerating your revenue growth. And you'll recycle your capital multiple times before you’ve fully repaid your advance.
In the first month, if you are able to sell out the inventory, even after paying back the loan, you would still have more than £10,000 to spend on new inventory, thus creating an opportunity for more profit.
As you make sales, your capital is quickly freed up for you to reinvest back into inventory. The end result is the creation of a positive feedback loop that fuels even more growth.
So far, we’ve had great feedback on our funding. One of our customers, Saigates, saw a 31% increase in revenue after just 1 month!
By working with us at Lenkie, your cost of borrowing will decrease as your business scales and the more data we have to analyse. We’ll then be able to provide you with more substantial amounts of capital.
Our aim is to fund your long-term business growth and give you even more cost-effective capital over time. So far, we’ve helped many businesses with funding amounts within the range of £5k-200K per business, and across a variety of sectors.
So if you’re interested in finding out how much capital you can access Apply Here - it’ll take you less than 3 mins! *Applying will not affect your credit score