How to find money? The interest that you're going to pay on inventory finance

is tax-deductible. As long as you know that your sales are

going to be enough to meet the repayment, then you can certainly go

in and tap into that type of finance option. Manufacturer finance. This

is something that hardly anyone is talking about. So when thinking about

getting manufacturer finance, the things you've got to

demonstrate would be seller finance is perfect for

someone who's just starting out. You don't have to worry about the banks, don't

have to worry about credit cards or even your own savings. What does seller finance

really look like? It would be perfect if you were buying an existing I'm

Matthew Fraser and this is Amazon Ecom

Secrets. I'll be sharing with you the secrets that helped me go from

millions in debt to an eight-figure entrepreneur. If

you're ready to escape the nine-to-five and live life on your terms,

let me show you the way. I was shocked the other day when someone

said, why do we pay tax if the government prints money?

That is a play. Good question. Why do we pay tax? The

government's got a printing machine. Just print more money and give it to whoever needs

the money, you know, like the welfare system and what have you, right? As

a working man in Australia, I

don't want to pay tax anymore. I actually, it's like these days,

you can now opt out to like Australia Day. They can opt

out. I don't want to be a part of Australia Day, which I think is wrong, but apparently you

can do that now. I've had to think about it. I think I

want to, I think I want to opt out of the tax system. How

about that? What do you think? So speaking about money, let me

tell you the top three things of how to help start your Amazon business that

the banks don't want you to know about. We're going to talk about how to

find money. You might think, well, Matt, we know how to find money.

We know where it's under rocks and things like that, and we can get money in the

lotto. But this question comes up so much with

my clients. And it actually becomes a stopping

block for them. And I just had a story just recently. where

a client was, you know, we're looking at products to sell and

in her mind she said, well she said to me because she was in her mind, she

said, Matt, oh I just don't think I can do that type of product or I

can't sort of progress any further because I can't, I just don't have any access

to the funds that I think will be required to sort of,

you know, buy inventory, right, buy stock. And I said, get

that out of your mind. If you've, there's

money everywhere on this planet. There's so much money on this planet.

You've just got to learn how to tap into it. Right

now, if you've got a product that you think is going to be a winning product, then

there's always going to be someone or a company. that

you can tap into to get it. So let me tell you the first way

of which to get it. And these three ways, of course, the banks don't

want you to know about because they want you to go to the bank to get money because

they're going to make interest. The first thing, inventory finance. Now,

inventory finance is traditionally done by finance

companies, smaller tier finance companies, not big banks. and

what they do is they will lend you money just simply

based on your stock. So how does that work? You

get your invoice from your manufacturer, you'll have predetermined a

finance limit from an inventory finance company and

then you'll send through the invoice and they will literally give you

in generally up to 80% of

the value of that stock. So let's say your stock is valued at $100,000, they'll

give you $80,000 towards that stock.

And normally, you have to pay it off over a generally

three to maximum six-month period. So that

is something that you don't have to take also security over

a house, a car, or anything else. It's simply take

security on the stock. And that type of finance, inventory

finance, is a way of which I've actually used before. There

was times when I was selling my healthcare product, and

all of a sudden, the sales started to go up dramatically.

So I needed to tap into further

funds to buy stock really, really quickly. So

I simply contacted the finance company. Now, in

the very, very beginning, they had granted me a $50,000 limit. But

over time, once you've proven yourself at making good

repayments, they simply increase that limit. So I got to a point

in my journey where they had already pre-financed an

approval of like $500,000 that I could just

tap into at any time. So as my sales were

now going up, especially during the COVID

period, my sales were going absolutely mental, get more stock into

the system, right? Because if you can't get access to stock, then

you can't make sales. And don't

forget too, the interest that you're going to pay on inventory

finance is tax deductible. So you can write that off anyway. So

as long as you know that your sales are going

to be enough to meet the repayment, then you can certainly go

and tap into that type of finance option. I think it's actually a

winner. This type of inventory finance is probably not something

that I would suggest if you're just starting out though. If

you're under my coaching program or my mentorship, I

wouldn't be getting you to go into such huge amounts of finance

or funds required anyway. We'd start small and

test products, which really would mean sort of under the $10,000 mark.

We're not talking $50,000, $100,000, $500,000 worth of stock. And

that way it's easier to finance yourself either through something like

a credit card or your own personal savings and not have to

worry about tapping into inventory finance for larger sums. That

type of funding will be more required if it was something

like in my case where I was already selling but

I needed to really leverage up my stock so

I could make more sales as things were just going so great. All

right, what's number two in the list of how to find funds?

The funds that the banks don't want you to know about. Number

two would be manufacturer finance. Now this is

something that hardly anyone is talking about and

this is where you can use your manufacturer to

finance the stock for you. Now how would that work you ask? Well

you've built up a relationship with your manufacturer You're now going

to use them to provide you the stock at

no cost or minimal cost. And then you'll pay

them back for the stock much further down the track. Now that could be

anywhere from 30, 60 or 90 days. And

that means that you don't have to come up with the money or a lot of the money

upfront. The stock will be in the system. You'll be able to make those sales.

and then pay back the manufacturer at a later date. And

that could really, really help with your cash flow. So

when thinking about getting manufacturer finance, the

things you've got to demonstrate would be a great relationship. Let's

say you're working with someone who's in China. Chinese are

renowned for building relationships. They want you to be

a long-term partner to help them and their

workers succeed and you're a part of that journey. So

if you've used a particular manufacturer for a year or

two years, there will be no disincentive

for you to go back to that manufacturer now and ask for them

to finance the stock on your behalf and really what

they're giving you is credit terms right they'll provide the

stock for you and you can have it for you know 60 90 days

and then you can pay them back later now that all again comes back

to the relationship now perhaps you've even visited the manufacturer

in china that would be something that would be absolutely beneficial for

you to do but of course this is going to be some something for someone

who's been working with the manufacturer for probably at least one

or two years. All right, number three of

funding ways that banks don't want you to know about and

that would be seller finance. Now, seller finance is perfect

for someone who's just starting out. You've got no history

of selling online whatsoever and you can tap

into seller finance, which means you don't have to worry about

the banks, you don't have to worry about credit cards or even potentially

your own savings. And what does seller finance really look like? It

would be perfect if you were buying an existing Amazon

FBA business, or any type of online

business. And it's where you take on the business and

the seller allows you to pay back them

over a period of time, which would also include an interest

component. And this means that you don't have to come up with

the finance upfront. So it gives you the opportunity

to get into this business early, no money down,

potentially, and then pay back the seller at a later date. And

this could be a win for the seller because they now get to sell

it, yeah? And a win for you because you don't have to come up with the money up

front. really, really great for people just starting out. So guys,

I've just given you three ways that you can tap into to get finance for

a range of different things from inventory finance, to manufacturer finance,

to seller finance. But what are the things that you should absolutely avoid

at all costs? The number one thing that you should absolutely avoid

when it comes to financing your inventory for Amazon or

buying an Amazon business is going into a partnership

with a family or friend. That could be absolutely

catastrophic. So let me tell you a story that didn't turn

out so well. And a client of mine had invented this product.

And other people in the family thought it was amazing. So they came

rushing in wanting to be a part of this. And they were offering, it

was $150,000 for 50% of the business. Now remember, This

product and business hadn't launched yet, it was in idea

phase. My client had already spoken to an accountant

and a solicitor at the time and they'd done some numbers and

the possibility for this product to go big was

absolutely massive. This product could go global and be in

everybody's home. It could have been, it could ultimately, think

of this, it could be ultimately a $10, $20, it

could be a $50 million business. So the family members are

thinking, hey, there's money to be had here. We'll try and offer

my client $150,000, 50%. Now, at

the time, my client actually did need some money. So

he did think about actually selling half the

business for $150,000, which would have been a terrible idea. but

he was ultimately able to tap into his own

finance through his own mortgage broker and then this would be another

option for people to consider was he tapped into his his

home equity his home equity became the funding

mechanism for his product and ultimately

what happened was the family members got very, very disgruntled,

very, very upset, and let's just say it caused some

tensions within the family because they were now cut out altogether. And

what they should have done was take the very first offer which

was on the table, which I didn't tell you, which was $150,000 for 25%. Never,

never get greedy because it can always backfire on you. I think when people are

starting something new, they're thinking they want to start with

somebody else because they think they need to do it together. I think when

I first started, I was probably thinking that, you know, because

I think you're thinking about it's going to be a little bit de-risking by

having somebody else to bounce ideas off. Ultimately, my

suggestion would be not to do a partnership. That would

be my number one suggestion. I'm not saying that partnerships

can't work, they can't be great. But from my

experience, I think it's better to take on all the risk yourself. And

certainly in my case, I prefer to take on all the risk myself, take

on all the responsibility, and not be accountable to

somebody else on your own Amazon eCom

journey. And certainly when you're thinking about partnerships, I would encourage

you to speak to either an accountant, a solicitor, or

your mentor. That's one of the things that I provide in my service

when I'm talking to my clients is they get to come to me and bounce these types of

partnership ideas. And I always go deeper into

what it means for the client. That's ultimately what

my interest is, is getting the right deal for my client.

Because you've got to be careful too, even if you go and speak to an accountant or solicitor, They

might have a bias vested interest. It could happen. So

just certainly keep your wits about you. Someone thinking about funding

either your inventory or a new business, certainly

if you go to a bank, they're going to want to take equity over something.

So you'll go to them and say, look, I found this business to buy. It might be $200,000. They're going to want to

say, hey, well, Do

you own a house? And now, in Australia, a lot of people

at the moment have a lot of equity in the house. Now, it could be an option for

you, because you're going to get a cheap rate compared

to standalone non-secured finance. The rates could

be under 10%, whereas unsecured standalone

finance might be over 10%. But

you're also putting your house on the line. So

just think about that. Putting your house on the line, is

it worth a startup business? I

would dare say probably not, particularly if you're inexperienced in

this space. But if you've got a lot of experience and

you've got runs on the board with selling things online, then certainly tapping

into home equity finance is an option for

you. So certainly I've given you some of the top options that I think

are worthwhile considering, especially the ones that the banks don't want you to know about.

But if you want some further options to consider with finding money

to finance your inventory or buying an Amazon business, or

if you want me to simply have a look at your specific case, because

as you can imagine, all these types of funding options come at

a case-by-case basis. It's not just, can I tap into the money?

It's also, do I have the stomach to

withstand large types of lending because it

can be quite stressful. If you want more about funding and

would like to speak to me directly, please come to my free community.

You'll find the link in the show notes. I look forward to

seeing you there and take care. Thanks for tuning into Amazon

Ecom Secrets. If you enjoyed this episode, the best way

to show your support is to give a five-star review on

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can also find more at I'm Matthew Fraser