21 Aug What is Amazon Lending?
If you are a person whose company has just started selling on Amazon and still does not know what are all the options and facilities that the American e-commerce company provides to its customers, we recommend that you continue reading this article.
As we well know, at some point, every business needs a little push. Therefore, if you need your company to continue growing within Amazon but you don’t have enough funds, you want to know what the Amazon Lending program is all about.
What is Amazon Lending?
Amazon Lending is a tool available on Amazon that provides you with funds that will allow you to continue growing. No matter what products you sell on the platform, Amazon will help you if you meet all the requirements. Basically, Amazon Lending is a lending service that you can access just by being an Amazon seller.
The idea for Amazon Lending came about as a service to help small businesses, especially those with few resources, so they can get the financing they need. In fact, Amazon has been granting loans to various merchants since 2011. But it was in 2018 when it managed to expand its reach thanks to its alliance with Banco de América. This allowed him to help a much larger number of salespeople.
The loans offered by Amazon’s platform are ideal for sellers who have an Amazon account and need financing to keep their business growing. This allows sellers to remain active and selling their products without any interruption.
It is very important to underline that only those accounts that receive an invitation from Amazon have access to this service, that is, you can only enjoy these loans if Amazon sends you an invitation. These invitations are communicated via email and appear on the Seller Central homepage if your business is eligible.
The process is 100% digital and the application to receive a loan is very simple and can be completed in just a few clicks. In fact, the steps to follow are very simple: you just need to choose the amount and time that suits you best, without any prepayment penalty. Keep in mind that not all sellers have access to the same amounts, so your limit will depend on many factors.
The loan amounts offered by the American giant range from $1,000 and can reach the figure of $750,000. For those sellers looking to continue growing on Amazon, this can be great news, as they would receive enough funding to carry out all the projects they have in mind.
Amazon gets the funds to you in the shortest possible time. In fact, if you meet all the requirements, you could receive all the money you need in one day. But, what is most striking about these loans is that their payment plans are very simple, as they are fixed payments and are deducted monthly from your account. This will be reflected as a percentage of the sales you have had on the platform.
What requirements do you need to meet to receive an Amazon loan?
The two minimum requirements that Amazon takes into account are as follows:
- You must have an Amazon seller account to access this loan. In other words, you will not be able to apply for this loan before opening your account.
- But, it’s not enough to have a seller account. This service can only be accessed by invitation, and that invitation is sent by Amazon. To do this, take into account growing sales (you must have reached at least $10,000 in sales in the last year) and good customer metrics.
What steps do I need to take to get a loan?
To access the Amazon Lending service you have to follow a few simple steps:
- Log in to your Seller Central account.
- If your business is eligible to apply, you’ll see an Amazon Lending message on your homepage.
- Now you must choose the financing that best suits your business, up to the limit that allows you to apply.
- Once your application is approved by Amazon Lending, you will be able to access this loan within 5 days. However, in the event that the loan is issued by Marcus by Goldman Sachs, you can access the funds at any time after your application is approved.
If you’re not eligible to apply for a loan through Amazon Lending, but need money to keep your business growing, there are many more options available to finance you.