Juni Expands Capital Product with Inventory Financing for Ecommerce Businesses

Published 5 months ago

Juni, a financial platform for digital commerce, introduces Inventory Financing to its Capital product range. This new product arrives on the heels of Juni’s media financing product launched earlier this year, which empowers businesses to ‘buy media, pay later’ (BMPL). The inclusion of Inventory Financing is a strategic move by Juni to fashion a Capital product that aligns with the distinct financial demands of ecommerce businesses.

Addressing the Inventory Challenge

Juni’s research indicates that over 50% of their customers’ expenses are tied to inventory, making it their largest cost. A healthy ecommerce inventory turnover ratio is typically 4-6 times annually. However, some businesses may purchase inventory less frequently, resulting in cash flow problems and considerable delays in seeing a return on investment, sometimes extending up to six months.

Juni’s Inventory Financing product aims to resolve these issues by providing customers extended payback terms of up to 120 days. It offers fixed monthly fees starting at 3% and enhances liquidity, cash flow forecasting, and margins on larger inventory orders from EU, China, and US suppliers.

Inventory Financing and Capital for Invoices

The Inventory Financing product will reside within Juni’s Capital for Invoices offering, alongside Media Financing (BMPL). Consequently, once an ecommerce business is approved for Juni Capital, they will have a single credit line that they can allocate to either inventory or media invoices as required.

Juni is also introducing a split payments feature. This allows ecommerce businesses to divide supplier payments between debit and capital, granting financial control and the option to pay in a manner that aligns with their cash flow needs.

Empowering Ecommerce Businesses

Samir El-Sabini, CEO and Co-founder of Juni, expressed his excitement about empowering ecommerce businesses to unlock capital for further growth. By tying less money in large inventory orders, businesses can reduce risks associated with sales seasonality. He also highlighted that while logistical lead times for inventory are challenging to influence, payment terms are more adaptable. Utilizing Juni’s inventory financing enables businesses to negotiate competitive offers from suppliers.

This launch represents another milestone in Juni’s quest to establish itself as a banking alternative for digital commerce businesses, bolstering its core banking offering.

Shelley Havemann, Senior Director of Product at Juni, emphasized the critical role of inventory management in building a sustainable and profitable ecommerce business. She expressed confidence that Juni’s inventory financing product would create additional value for their customers, enhancing control and visibility over their cash flow.

The company plans to launch split payments later this month, promising even more flexibility in managing liquidity. Juni Capital for invoices is currently available to ecommerce companies based in Europe. Eligibility is required for inventory financing. The company anticipates launching Juni Invoices in the UK next year.