Research from McKinsey & Company reveals that subscription boxes are big news; in fact, 15 per cent of online buyers have bought one or more subscriptions for a regular box of some kind, with monthly delivery tending to be the most popular frequency.
Within the past five years the market for subscription boxes has grown by over 100 per cent annually. The biggest retailers are now generating big money, with sales worth over $2.6bn (£1.85bn) in 2016, compared with $57m just five years earlier. The typical subscriber is likely to be aged between 25-44, have an income of between £40k and £80k, and live in an urban environment. Popular subscription box products include specialist food, makeup and toiletries, and flowers.
The opportunities for entrepreneurs are excellent. Already there are a number of niche online subscription boxes that are enjoying real success amongst their target markets, selling everything from razors through to protein bars on subscription. The market looks set to grow as awareness and interest in these boxes increases, along with a growing consumer desire for greater convenience.
Investing for growth
Subscription box companies have a range of costs attached, even if the company is relatively small or at an early stage of its growth. Delivery, packaging, warehousing, stock control, staff, systems and physical premises all add up. Marketing campaigns also cost money and require investment, but smaller and growing businesses may not have access to large cash reserves that give them the liquidity they need to withdraw capital without affecting the risk profile of the business.
A better way to borrow
Business loans are still the preferred method of borrowing for most enterprises. Unlike angel investment, they require no loss of ownership; unlike grants, they are quick to access. When it comes to Century Business Finance, loans can be made available in just 24 hours thanks to our highly-efficient digital operation and processes.
We lend from £25k to £500k for unsecured business loans, with interest rates that start from 4.8 per cent. Our loans are available over terms of six months to five years, depending on your preference, and there are no hidden fees or charges, including no early repayment charges. If you want to repay your loan early, you simply pay less interest. What’s more, our loans are available for any business purpose. Whether you need to buy stock, apply branding to your delivery vans, invest in a new CRM system or build a new website, we can help.
For asset finance, we offer specialist loans from £20k to £1m for any kind of equipment, including building works. Terms are available of up to seven years and repayments are 100 per cent tax deductible, making this a highly efficient way to fund your business.
We accept nine out of ten applications and make an instant lending decision. The application process takes just five minutes and is carried out online via a short form. Once we have approved your loan, the funds can be in your business bank account the following day.
If you have any queries, please contact our friendly and expert finance team. Alternatively, complete the short online application form without delay and your business loan could be in your bank account tomorrow.