In this episode of The Modern Financial Podcast, Jake Hoffart features Eric Youngstrom, Founder and CEO of Onramp Funds. Though lending is not a new business, Eric found a gap in the cash flow of early-stage e-commerce businesses where he could help.

He shares how they help entrepreneurs with more flexible terms for capital financing and offer this at scale. He also discusses how they get their own financing from investors and a future with more involved software intelligence to instill financial discipline within entrepreneurs.

HIGHLIGHTS

• Onramp: Working capital financing for early-stage e-commerce businesses
• Capital from investors and private equity
• Fitness, reading, praying, and family time keep Eric grounded

QUOTES

What working capital financing with Onramp looks like - Eric: "Profit and cashflow are 2 different things. And so, unfortunately, like that profits captured in a cashflow cycle, which becomes very hard to extract the cash, and profit alone doesn't mean you're actually paying the mortgage. So what we're doing is kind of coming here and saying look, you actually have a profitable business, we're going to go ahead and loan you money against your, let's call it, 3 to 5 months worth of revenue."

Instilling discipline with newer merchants that help them scale - Eric: "Our goal is that we should help the merchant reach a scale in their business size and have used capital wisely for a long enough period of time that they will eventually go to a bank and graduate out of us."

Find out more about Eric and how to run an e-commerce business in the following links:

• LinkedIn: https://www.linkedin.com/in/ericyoungstrom/
• Website: https://www.onrampfunds.com/