How To Get Funding From Amazon Lenders
If you’re an Amazon seller in need of capital, we can help! Please read our comprehensive guide to learn everything you should know about Amazon lenders or apply now to fund your Amazon business.
Amazon is a buzzing online marketplace supporting over 2 million sellers across the globe and over 500,000 in the United States. Despite the massive potential for growth that Amazon offers by appealing to a worldwide market, the trajectory and growth for Amazon sellers are the same. You can only grow as fast as your financing allows.
Unfortunately for Amazon sellers, working with traditional banks for small business loans and inventory financing can be difficult. But there are other Amazon financing options that these sellers can utilize to get the financing they need to grow their Amazon business further. Like all other credit options, you need to consider each option and select the most suitable one carefully.
Who Can Qualify for Funds From Amazon Lenders?
Amazon Lending alone has loaned over $3 billion to small and medium-size Amazon sellers. The figure is likely higher when you consider other Amazon lenders.
Although the qualifications on who qualifies for funds from Amazon lenders differ from lender to lender, a few requirements cut across the board, these are:
With many lenders offering unique financial solutions, you must identify a lender with the ideal loan offer best suited for you and your business. It will help you evade unnecessary expenses and ensure you make the most out of the credit extended to you.
What Interest Rates Are Offers by Amazon Lenders?
The interest rates offered by Amazon lenders vary wildly. The rates depend on a multitude of factors that include:
- The loan sizes
- The repayment terms
- The quality of credit or Amazon seller account
The interest rates can range from as low as 6.99% to as high as 20.99%. The specific interest will depend on the Amazon financing you prefer.
Interest is not the only thing you have to worry about. Some financing services like Amazon business line of credit will charge you a maintenance fee if you don’t use 30% of the Amazon funding. Other options might also charge you prepayment penalties.
It’s critical to understand all your Amazon lender’s fees, interests, and penalties before making the application.
Amazon Business Loan Companies
funding. Unlike a traditional small business loan, these third party lenders offer more favorable terms, are less demanding, and make the funds available sooner. Some of the leading Amazon business loan companies include:
Merchant Cash Advance
Merchant Cash Advance is a versatile lender that caters to the different financial needs of growing businesses. We offer funding of up to $500,000 in as little as 24 hours once approved, with no obligations or fees. You can easily apply here on our website in just 10 minutes.
Merchant Cash Advance’s range of funding solutions includes small business loans, bad credit business loans, merchant cash advances, and business cash advance loans. These loans are accessible to all small businesses, including Amazon sellers. Some of the requirements to apply for e-commerce lending from Merchant Cash Advance include:
- At least two years of operation of the Amazon online store
- A credit score of at least 500 for more robust financial solutions offering
- Profit and loss statements
- A statement describing how you plan to use the loan
- No collateral
Lendio
Lendio is another excellent place to get an Amazon loan. According to Lendio, they’ve extended over $12 billion in funding to small business owners.
A variety of loan options are available through Lendio, including short-term loans, equipment financing, a business line of credit, startup loans, and credit card loans.
Lendio’s application process is quick and straightforward, estimated to take about 15 minutes. The application also allows you to compare terms and options from over 75 lenders and choose the best one for you.
In most cases, you will receive funding within 24 hours. Lendio offers different types of loans, each with different requirements. In addition, you can use tools such as loan calculators and bookkeeping to ensure you stay on top of everything.
Kabbage
Kabbage is a little different. It offers small business loans that allow you to use the cash you need when you need it. Kabbage also offers other types of financing available for small businesses, including merchant cash advances, and most of their loan products are perfect for e-commerce businesses.
Loans are available up to $150,000. The loan amounts are based on your sales volume and history. Kabbage offers the benefit of not paying anything until you actually use the funds.
Amazon Inventory Financing Companies
Inventory financing is beneficial to e-commerce businesses. is an excellent way of increasing your available stock and ensuring you never miss out on available sales and revenue.
Inventory management financing also allows you to pay the loan as your stock sells, giving you more flexibility while ensuring you meet customer demand. Some of the companies that offer Amazon inventory financing include:
Kickfurther
Kickfurther is one of the leading Amazon inventory financing companies. It allows Amazon businesses to access funding for inventory at up to 30% lower rates than other options.
Kickfurther also offers numerous benefits that appeal to people looking for online business loans. These include:
- Affordable inventory financing loans
- Quick access to capital, most deals funded within one day
- You don’t pay until you sell
- Easy application process
Kickfurther has an approval rate of 99.5%, which means that almost every ecommerce business that applies gets funded.
Payability
Payability has a product specifically designed for Amazon sellers. For other online businesses, they also offer similar e-commerce lending options. After selling over $2000 for three months on Amazon, sellers can apply for a loan. Making Payability a great choice for both new and experienced sellers.
Qualifying merchants can access up to $250,000 worth of funding with no credit checks required. The application and approval processes are fast and easy. You can apply in a span of a few minutes and get funding as soon as the next day.
The company believes in providing unique funding solutions to suit your Amazon store. That is why the terms are also flexible and designed to lower your costs the faster you grow.
Amazon Business Lines of Credit
A business line of credit is a simple and effective way for Amazon sellers to have access to the funding they need. Whether you’re experiencing slow sales or unplanned expenses, having access to extra capital could be the difference between your business staying open or closing down.
Here are some companies that offer lines of credit for Amazon sellers:
Fundbox
Fundbox offers a revolving line of credit for small and medium businesses. Once approved you get access to your dashboard. From there you can draw funds directly into your business bank account. If you need some assistance along the way, their dedicated customer support team is just a phone call away.
If you use Fundbox for your Amazon business credit line, there are no penalties if you repay your loan early and you can see your potential payment total before you commit. The terms and conditions are clearly laid out to avoid confusion.
You must meet the following criteria to qualify:
- US-based Amazon seller
- 600+ personal FICO score
- $100,000+ in annual revenue
- Been in business for 6+ months
- Business checking account
BlueVine
BlueVine is another business line of credit alternative that comes with numerous benefits: dedicated live support, no monthly or NSF fees, and unlimited transactions with no minimum balance required.
BlueVine allows you to borrow money in a way that makes sense for you. With a revolving line of credit, you can turn unpaid invoices into cash using invoice factoring and get a decision on your application in as little as five minutes.
What Other Funding Is Available for Amazon Sellers?
There are various financing options to consider depending on your needs and the purpose of the credit. Although e-commerce lending has vastly changed how online sellers access credit, the regulations are mainly similar.
The best option for your business is one that offers the best interest rates and enough funding to cover your needs. Additional types of lending available for Amazon sellers include:
SBA Microloan
The United States Small Business Administration offers short-term business loans to startups and those looking to expand. The funds are channeled through intermediary lenders, where qualified applicants can get loans of up to $50,000.
Some of the terms of applying for a microloan include:
- The minimum loan amount is $500
- Maximum loan is $50,000
- Maximum repayment period is six years
- Interest rates 8-13% APR
- You must be a for-profit small business to qualify
- Your business should not be eligible for a traditional loan
- No bankruptcies or foreclosures in the past two years
- Good customer satisfaction metrics and no serious customer complaints in the last 12 months
The complete terms of the loan vary depending on the intermediary lender you use. The intermediaries might also require some sort of collateral and the personality guarantee of the business owner.
Benefits
- You can use this type of loan for inventory, supplies, or other business-related expenses
- Microloans are designed for for-profit businesses
- You have access to up to $50,000 in loans
- There’s no minimum personal credit score required from small business owners in most cases
- Some microloans also offer business mentoring programs
Downsides
- You cannot use the loan to pay for existing debts or purchase real estate
- The lengthy application process could take up to a few months
- You need to have a written business plan
- Personal financial statements are required
- Collateral or a personal guarantee may be required
Amazon Line of Credit
The Amazon line of credit is different from Amazon Lending. Under this Amazon business financing option, Amazon has partnered with Goldman Sachs to provide Amazon sellers with a business line of credit designed explicitly for third-party sellers on Amazon.
This option provides Amazon sellers with the flexibility to request funds when they need them and works great if you haven’t been invited for Amazon Lending yet. General terms Amazon loans include:
- Credit limit of up to $1 million
- Revolving credit: use and pay off as the need arises
- Interest rates range from 6.99% to 20.99% APR
Benefits
- An e-commerce lending option specifically for Amazon sellers
- You can use the funds as you need them
- The funds can cover operations costs, staffing, buying more inventory, product development, manufacturing, or marketing efforts
- Substantial credit limits
- Fixed interest rates
Downsides
- There is a maintenance fee charged if you don’t use at least 30% of the credit line
- Late payment fees
- It’s by invitation only
- Amazon will not control the underwriting process
Fintech Lenders
Even as online businesses grow, access to lending for Amazon Sellers and other e-commerce platforms is still short-handed. Other institutions such as Fintech lenders are stepping in to fill the gap. They give loans or Amazon lines of credit to Amazon sellers and other e-commerce businesses. The terms and eligibility for this loan depend on the company extending the loan.
Personal Loans
You can get funding for your Amazon business with a personal loan. Many banks and fintech companies offer secured and unsecured personal loans that you can use for many different purposes, including your Amazon business.
Personal loans are a good option if you’re just starting and don’t have any sales history to get approved for a loan through alternative channels.
Benefits
- You pay the same amount monthly
- Convenient, especially if you don’t have any other existing debt
- Works for sellers who are just getting started
Downsides
- Unsecured loans will have higher interest rates
- Your name is attached to the loan
- It might become a challenge if you have existing debt
- Based on your personal credit, the interest rates can be extremely high
Amazon Lending
Unlike a traditional small business loan, the Amazon Lending program is an invitation-only program to help small and medium-sized businesses grow on Amazon. This program provides short-term financing options for qualified sellers. It is an excellent program designed for Amazon sellers.
The terms for this kind of Amazon small business lending include:
- Minimum loan amount: $1,000
- Maximum loan amount: $750,000
- Up to 12 months repayment period
- The seller must have an account in good standing
- Minimum Amazon selling history of one year
- Show steady sales increase
- For active Amazon sellers only, the money can only be used to purchase inventory sold on the Amazon marketplace
- Sellers who qualify for Amazon lending will see it in their dashboard
Benefits
- No credit checks are necessary. But Amazon might review your business credit history.
- It takes about five days to approve the loan
- The funds are added to your seller’s account balance
- There are no fees or prepayment penalties
- Your customer metrics and sales history determine the funding amount
Downsides
- The loan payment will be taken out of your account balance
- This Amazon financing option is by invitation only
- The monthly payments will be high because these are short-term loans
- Qualification doesn’t always mean you will get approved
Financing Through Amazon Lending
Amazon has several lending options available to Amazon sellers. Amazon Lending is one of them. Under Amazon Lending, the e-commerce giant works with partners who believe that small and medium-sized businesses selling on Amazon should have a diverse set of financing options.
To create the Amazon Lending program, Amazon has partnered with Lendistry, a minority-led Community Development Financial Institution.
Under Amazon Lending and courtesy of Lendistry, qualifying applications can also access specific supplementary resources, including webinars, one-on-one consulting, and on-demand educational classes tailored to meet your business needs.
Who Qualifies for an Amazon Loan?
Eligible U.S-based Amazon selling partners are invited to learn more and apply for Amazon funding through Lendistry. Sellers will see a message on their seller central homepage from Amazon Lending, inviting them to apply.
Lendistry will require an active Amazon Seller account with a strong sales history and good business health. The better the sales history, the higher the loan you can qualify for.
Amazon Lending Interest Rate and Terms
Although Amazon Lending has not publicly disclosed most of the terms and fees associated with the program, a few details exist in the public domain.
Amazon sellers can access e-commerce lending from as little as $1,000 to $750,000 under the Amazon Lending program with a repayment period of up to 1 year.
Amazon Lending indicates that the interest rates for its loans are lower than the interest for most business credit cards which range between 14-24%. Most sellers who have used this facility report receiving interest rates between 6-14%.
They offer fixed payments that are deducted directly from your Amazon account every month. You can also opt to have the payments taken out bi-monthly if that is more suitable for your business.
If the funds in your Amazon account can’t cover the monthly payment, the payment method linked to your account is charged.
Like other lending institutions, Amazon has the right to seize your inventory and sell it to pay off your debt if they can’t pull enough funds from any of your accounts.
Frequently Asked Questions About Amazon Lenders
It is usually necessary to have some history on the Amazon marketplace in order to secure financing. The exact period differs from lender to lender, but it can start with as little as three months of sales history. Although most Amazon lenders might not offer financing to brand new Amazon sellers, you could consider taking out a personal loan to get your Amazon store going.
Amazon has multiple lending options in partnership with financing options. Each of these programs allows you to borrow money to grow your Amazon business. Your Amazon loan payments will be automatically deducted from your seller central account.
Starting a business on Amazon is possible with a bank loan. In most cases, you will have to take out a personal loan because the other financing options require that you have a sales history.
The best type of funding varies from business to business and your current financial status. Before you agree to a loan agreement, make sure you understand the terms of each financing option. Consider options that give you a longer payment period without prepayment penalties.
Funding Your Business Is Our Business
Conclusion
For Amazon sellers with small businesses looking for small business financing options, there is a wide variety of Amazon lenders you can work with. However, each of these options offers varying interest rates and terms.
Before applying, take time to understand what each option offers and what that means for your business. With proper planning, you will find the best facility to grow your business while minimizing risk and keeping interest rates manageable.
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