Identifying the pain point
Before partnering with Storfund in April 2021, Back Market knew that cash flow management was one of the main pain points for their sellers. Marin-Marie Chaboureau, Seller Finance Manager at Back Market explained “our sellers have cash-centric businesses, increasing their working capital is key for them.”
Payment terms on Back Market range from 10 to 20 days, which is common on marketplaces, to allow for refunds and returns, so often sellers are waiting to be able to order more inventory, rather than running their business efficiently.
Back Market began researching solutions for their sellers when they made contact with Storfund. Offering sellers payment for their marketplace sales on the day they sell, Back Market were interested to find out more about an option for their sellers who didn’t want to use their savings or short-term loans to fund the gap between selling and being paid.