The right form of funding can give your business the fuel it needs to take sales growth to the next level. Did you know that small business loans and other types of financing are available to eligible US sellers by invitation through the Amazon Lending program? In many cases, no credit check is required, and it’s possible to get approved quickly—sometimes in seconds. This post covers the details so you can find out whether Amazon Lending solutions are right for you:
- What is Amazon Lending?
- What are the requirements for Amazon Lending?
- How do you apply for financing through Amazon Lending?
- What’s a term loan?
- What term loans are available through Amazon Lending?
- What’s a merchant cash advance?
- What’s the Amazon merchant cash advance?
- What’s a business line of credit?
- Does Amazon offer a line of credit for businesses?
What is Amazon Lending?
Amazon Lending is a program that extends invitations to sellers who qualify for various funding options like term loans, merchant cash advances, and lines of credit from the program’s third-party financing providers. Eligible small and midsize businesses in the US can benefit from a streamlined application process, as well as fast decision timeliness and funds disbursal. Sellers can often access funding in days if not hours, and get favorable terms tailored to their business.
What types of financing are available through Amazon Lending?
We’re continually enhancing our selection of funding options from our third-party financing providers. Based on current selections, options like term loans, merchant cash advances, and lines of credit may be available.
How does Amazon Lending work?
Amazon Lending offers a simplified and streamlined process to help you get funding:
- If you meet the criteria for a third-party invitation, you’ll automatically receive an invitation in your Seller Central account.
- You’ll have the chance to review details for invitations, like offer amounts, rates, and payment terms.
- If you’d like to apply for an offer, you can proceed with the third-party financing provider’s process.
Learn more about the Amazon Lending program
What are the requirements for Amazon Lending?
Receiving an invitation through Seller Central indicates you’re eligible to apply for a financing offer. Requirements are dynamic, and eligibility varies based on offer. For example, eligibility might be based on criteria like your credit profile, sales history, or other business performance factors. To maximize your opportunities, we recommend a focus on:
- Keeping your selling account in good health
- Earning excellent customer feedback
- Maintaining steady sales growth
We constantly review selling accounts for eligibility, so even if you don’t have an invitation available now, you might have one tomorrow or next week.
To see what offers are available to you now, log in to your Seller Central account, hover over Growth in the Seller Central main menu, then select Lending to visit the Amazon Lending page. Check back on this page often to see if you’ve received new invitations. You might also receive an email or Seller Central notification when you have a new financing offer.
Check your eligibility in Seller Central
How do you apply for financing through Amazon Lending?
If you’re eligible for a financing option, you can review your invitation on the Amazon Lending page in Seller Central, then select Start application to begin the process.
Application steps vary by third-party provider and offer. The provider determines what type of information they need to process your application. As part of the process, you might be asked to share your business’s Amazon selling data with the financing provider. We get your explicit consent before sharing any data. If you agree to share data, you’ll be redirected to the provider’s site to complete your application. Refer to our Data Sharing FAQs in Seller Central for more information on data sharing.
What’s a term loan?
A term loan is a form of financing where the borrower receives a lump sum repayable within a specified timeframe along with fixed or variable interest. A fixed interest rate remains the same for the loan duration, while a variable interest rate fluctuates based on economic conditions. The monthly payment is generally the same throughout the term of the loan.
What term loans are available through Amazon Lending?
Amazon Lending currently connects sellers with three third-party providers who offer term loans: Lendistry, Uncapped, and QuickBooks Capital.
Lendistry term loan
Lendistry offers a non-revolving term loan to qualifying US-based businesses by invitation. The seller makes equal monthly payments covering the principal amount and a fixed interest rate. Loans range from $10,000 to $250,000 with terms of up to three years. Annual percentage rate (APR) varies based on factors like the business’s performance in the Amazon store. Payments are electronically debited from the bank account that the seller provides.
Learn more about Lendistry offers (login required)
Uncapped term loan
Uncapped offers a non-revolving term loan to qualifying US-based businesses by invitation. The seller repays the loan in equal payments covering the principal and a portion of a fixed cost. The fixed cost is calculated as a percentage of the total loan amount. Loans of up to $5 million are available with terms of up to 18 months. Payments are electronically debited from the bank account that the seller provides. There’s no penalty for prepayments at any time, and if the seller pays off the loan early, Uncapped only collects the principal outstanding.
Learn more about Uncapped offers (login required)
QuickBooks term loan
Eligible Amazon sellers who are also QuickBooks Online customers can apply for a term loan that QuickBooks Capital offers by invitation. APR is subject to change and ranges from 9.99% to 36%. Loan amounts range from $1,500 to $200,000. Repayment periods of six months, one year, or two years are available. Select from one or more term options and set up autopay to simplify repayment.
What’s a merchant cash advance?
A merchant cash advance (MCA) is a form of financing that provides capital to a business in exchange for a portion of the business’s future sales.
Some MCAs are calculated using a “factor rate.” For example, if you accepted an advance of $10,000 with a factor rate of 1.5, you would agree to repay $15,000 total ($10,000 x 1.5).
Payments are calculated as a percentage of your sales. This can be a flexible form of financing because the amount of each payment increases or decreases based on your sales volume. For example, if you accepted an advance with a 9% payment rate and bi-weekly payments, you’d pay $90 for a two-week period where you made $1,000. If you made $2,000 in sales over the following two weeks, your next payment would be $180.
What’s the Amazon merchant cash advance?
Parafin offers a merchant cash advance to qualifying US-based businesses by invitation. This non-revolving sum ties payment to a portion of a seller’s future sales for a fixed capital cost. There are no additional costs or interest, and no personal collateral is required. Offer amounts range up to $2 million and are determined by sales-based eligibility criteria, rather than credit scores. Growing sales can help businesses increase the amount of funding they qualify for.
The capital cost is a flat service expense based on offer size, term, and business performance. For example, if you accepted a $10,000 advance with a capital cost of $1,000, you would agree to pay $11,000 total. It’s possible to receive a partial rebate on the capital cost if you pay off the advance faster than expected.
The full amount is repaid over time as Parafin debits a set percentage of gross sales from your linked bank account on a regular basis. Your payment rate depends on the capital amount and the term that you select.
Learn more about Parafin offers (login required)
Getting the investment was really fast, maybe less than 24 hours . . . I was able to get the inventory that I needed and actually hired my first full-time employee.
What’s a business line of credit?
Similar to a credit card, a business line of credit provides a business with access to a revolving source of funding up to a set limit. You can draw funds whenever you need, and as you repay the funds you’ve used, your available credit is restored. This funding solution can be great for covering short-term expenses and can offer greater flexibility compared to committing to a loan.
Does Amazon offer a line of credit for businesses?
Uncapped offers a pre-approved, revolving credit line to eligible Amazon sellers by invitation through Amazon Lending. Interest accrues at a fixed rate on the drawn balance, so the seller only pays interest on the funds that they’re using. The fixed rate is locked in for the life of the agreement. Uncapped typically offers a one-year term with the option to renew. The available limit can grow with a business’s revenue.
Get small business loans and other types of financing
The right type of funding can help you free up cash flow and focus resources where you need them. Funding solutions available from third-party financing providers through the Amazon Lending program can help you invest in your business growth to support your ongoing success. Examples of ways you can use funds from include:
- Adding new products or product lines
- Investing in inventory
- Purchasing equipment
- Expanding your team or infrastructure
- Running ads or marketing
- Covering operational costs or unexpected expenses
- Weathering every season and bridging cash flow gaps
- Preparing for events like Prime Day
Before accepting an offer, be sure to carefully review all terms, and consider whether the funding source is right for you. It can also be a good idea to develop a plan or budget for how you’ll use and repay any funding that you accept. That way, you can borrow with greater confidence that it’s the right move for your business.
If you haven’t received an Amazon Lending offer yet, focus on establishing a strong track record of selling in the Amazon store, improving your performance metrics, and maintaining high levels of customer satisfaction. You can use strategies like marketing to boost sales and scale organically. With the right strategy, you can build a solid foundation for your business before you seek outside funding. Learn more in our guide for beginners.
Not yet selling in the Amazon store? Get started with our seller registration guide.
Frequently Asked Questions
Is Amazon Lending still available?
Does Amazon offer loans for sellers?
How do you apply for an Amazon loan?
Can you get financing from Amazon with no credit check?
Is there an Amazon small business loan?
Does Amazon have a small business grant?
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