Crestmont Capital Blog

Loans to Support Larger Average Order Values

Written by Mariela Merino | February 12, 2026

Loans to Support Larger Average Order Values

Increasing average order value (AOV) is one of the fastest ways to grow revenue without increasing customer acquisition costs. Instead of spending more to attract new buyers, companies can maximize the revenue generated from existing traffic and customer relationships. That’s why many growth-oriented companies are strategically using business loans to support initiatives designed to increase larger average order values.

Retailers, e-commerce brands, service providers, and wholesalers are all investing in inventory expansion, bundling strategies, premium product lines, and upgraded customer experiences. According to reporting from Forbes, businesses that focus on revenue per transaction often improve profitability faster than those relying exclusively on volume growth. Reuters has also highlighted how pricing strategy and product positioning can significantly impact bottom-line performance during economic fluctuations.

If your business is ready to increase transaction size but needs capital to support the strategy, structured financing can provide the flexibility required to scale responsibly.

What Does Increasing Average Order Value Really Mean?

Average order value is calculated by dividing total revenue by the number of orders placed. A higher AOV means customers are purchasing more items per transaction or choosing higher-priced offerings.

Common AOV growth strategies include:

  • Product bundling
  • Volume discounts
  • Premium upsells
  • Subscription add-ons
  • Free shipping thresholds
  • Cross-selling complementary items

While these strategies are powerful, they often require upfront investment in inventory, marketing, technology, or pricing optimization — which is where business loans come into play.

Why Larger Average Order Values Matter

Increasing AOV impacts profitability in several ways:

  • Higher revenue per customer visit
  • Improved return on marketing spend
  • Reduced pressure on acquisition costs
  • Stronger cash flow stability
  • Better inventory turnover

CNBC has reported that brands prioritizing pricing power and transaction growth are better positioned during economic uncertainty. Meanwhile, U.S. Census Bureau retail data continues to show shifts in consumer purchasing behavior toward bundled and value-based offerings.

Growing AOV isn’t simply about charging more — it’s about delivering greater perceived value.

How Business Loans Can Support AOV Growth Strategies

Step 1: Identify Revenue Opportunities

Before seeking funding, analyze:

  • Current average order value
  • Customer purchase patterns
  • Upsell conversion rates
  • Inventory gaps
  • Gross margin trends

This data helps determine how much capital is needed and where it should be deployed.

Step 2: Develop a Scalable Strategy

Some of the most effective AOV growth tactics include:

  1. Launching premium product tiers
  2. Expanding inventory for bundled packages
  3. Offering buy-more-save-more promotions
  4. Introducing limited-edition high-margin items
  5. Implementing subscription services

Each initiative may require inventory purchasing, marketing budget increases, or technology upgrades.

Step 3: Secure the Right Financing Structure

Business loans can fund:

  • Bulk inventory purchases
  • Supplier deposits
  • Packaging upgrades
  • E-commerce technology enhancements
  • Marketing campaigns
  • Fulfillment expansion

The goal is to align funding with projected revenue growth rather than strain existing cash reserves.

Step 4: Launch and Monitor Performance

Track:

  • AOV growth percentage
  • Profit margin improvements
  • Bundle conversion rates
  • Upsell adoption
  • Customer lifetime value

Adjust pricing and promotions based on performance metrics.

Types of Business Loans That Support Higher AOV

Different financing structures can support different business models.

Term Loans

Ideal for large upfront inventory investments or premium product development.

Business Lines of Credit

Flexible for managing rolling inventory purchases or marketing promotions.

Working Capital Loans

Useful for short-term promotional pushes or bundled campaign rollouts.

Revenue-Based Financing

Repayments tied to sales performance, making it attractive for seasonal or high-growth businesses.

Crestmont Capital provides tailored business loan solutions to support inventory growth and revenue expansion strategies. Explore options at crestmontcapital.com/business-loans.

Benefits of Financing AOV Growth

Using business loans to increase average order value can offer:

  • Accelerated revenue growth
  • Preserved operating cash flow
  • Stronger supplier relationships through larger orders
  • Economies of scale
  • Improved marketing efficiency
  • Expanded customer lifetime value

Instead of waiting to accumulate capital, financing allows companies to implement revenue-enhancing initiatives immediately.

Who Should Consider Loans to Increase AOV?

Businesses best suited for this strategy include:

  • E-commerce brands scaling product bundles
  • Retail stores expanding high-margin merchandise
  • Wholesale distributors increasing minimum order quantities
  • Subscription-based businesses launching premium tiers
  • Service firms introducing upgraded packages

If your business already has consistent traffic or client demand, increasing AOV can produce measurable bottom-line growth without expanding your marketing budget proportionally.

Crestmont Capital also offers working capital financing for businesses planning short-term promotional campaigns. Learn more at crestmontcapital.com/working-capital.

Comparing Financing Options

Using Cash Reserves

Pros:

  • No interest expense

Cons:

  • Reduced liquidity
  • Limited scalability

Merchant Cash Advances

Pros:

  • Fast funding

Cons:

  • Higher cost structures
  • Variable repayment impact on cash flow

Equity Investment

Pros:

  • No loan repayment

Cons:

  • Ownership dilution
  • Long negotiation timelines

Business Loans

Pros:

  • Predictable repayment schedules
  • Ownership retention
  • Structured funding based on growth plans
  • Larger funding potential

For revenue growth strategies tied to inventory expansion and upsell development, structured business loans often provide the most balance between flexibility and cost.

How Crestmont Capital Helps Businesses Increase Average Order Value

Crestmont Capital works with retail, manufacturing, and distribution companies to structure funding that supports revenue expansion goals. Their team evaluates business models, inventory cycles, and projected margins to align financing appropriately.

Available solutions include:

  • Business term loans
  • Lines of credit
  • Small business loans
  • Industry-specific financing

Learn more at crestmontcapital.com/small-business-loans and crestmontcapital.com/line-of-credit.

Strategic financing allows businesses to grow transaction value while maintaining operational stability.

Real-World Scenarios

1. E-Commerce Brand Launches Premium Bundle

A lifestyle brand used financing to purchase additional inventory and create curated bundles. Within three months, average order value increased significantly.

2. Retail Store Introduces Tiered Pricing

A specialty retailer added high-end product lines supported by inventory financing. Revenue per transaction grew while maintaining foot traffic levels.

3. Subscription Service Adds Upgrade Tier

A digital service provider invested in premium features funded through working capital. Upsell conversion rates increased steadily.

4. Wholesaler Raises Minimum Order Sizes

A distributor used financing to purchase larger inventory quantities, allowing higher order thresholds and improved margins.

5. Hospitality Business Upsells Experience Packages

A hospitality provider developed bundled service experiences with the help of structured funding, increasing average booking value.

Frequently Asked Questions

What is a good average order value?

It varies by industry. The goal is consistent improvement while maintaining healthy margins.

Can loans be used for inventory expansion?

Yes. Inventory purchases are one of the most common uses of business loans.

How do I calculate ROI on AOV growth?

Measure incremental revenue generated from higher transaction sizes against financing costs and operational expenses.

Will financing hurt cash flow?

Structured repayment schedules are designed to align with revenue growth and preserve working capital.

Are business loans better than equity for revenue expansion?

For many companies, loans preserve ownership and provide faster access to capital.

How much should I borrow?

Borrow enough to fully execute the revenue strategy while maintaining comfortable repayment coverage.

Next Steps to Increase Your Average Order Value

If you’re considering financing to support larger transaction sizes:

  1. Analyze your current AOV and margin structure.
  2. Identify the highest-potential upsell opportunities.
  3. Project inventory and marketing costs.
  4. Compare financing structures that align with your revenue cycle.
  5. Launch and monitor performance metrics closely.

Consult Crestmont Capital to evaluate business loans structured specifically for revenue expansion initiatives.

Conclusion

Increasing transaction size is one of the most efficient ways to grow revenue. Instead of spending more to acquire customers, businesses can focus on maximizing the value of each order.

That’s where business loans play a powerful role. They provide the capital necessary to expand inventory, launch premium offerings, implement bundled pricing, and upgrade customer experiences — all without draining operational liquidity.

With the right financing strategy, increasing average order value becomes a scalable, sustainable revenue engine rather than a short-term marketing experiment.

Disclaimer:
The information provided in this article is for general educational purposes only and is not financial, legal, or tax advice. Funding terms, qualifications, and product availability may vary and are subject to change without notice. Crestmont Capital does not guarantee approval, rates, or specific outcomes. For personalized information about your business funding options, contact our team directly.