Amazon Lending business loans review
Short-term loans up to $750,000 exclusively for Amazon sellers.
- Best for established sellers with an invitation from Amazon.
- Pick something else if you aren’t already a seller on Amazon.
Kellye Guinan is a writer and editor with Finder and has years of experience in academic writing and research. Between her passion for books and her love of language, she works on creating stories and volunteering her time on worthy causes. She lives in the woods and likes to find new bug friends in between reading just a little too much nonfiction.
Amazon Lending is an invitation-only program that offers short-term loans to Amazon sellers. And unless you’re already an Amazon seller, that’s about as much information as you’ll get — Amazon doesn’t provide details to the public about eligibility requirements, minimum loan terms or interest rates.
But because Amazon determines your eligibility before sending an offer, the application process is quick: Some approved sellers say they received a decision in minutes, with their funds disbursed on the same day. It doesn’t mean you’re guaranteed approval, however. Several borrowers say they received offers Amazon ultimately turned them down for.
It can be a good choice for sellers who need to buy inventory or stock. For everyone else, take the time to compare more business loans to find funding that best fits your business.
How much will this loan cost me?
Sellers can borrow anywhere from $1,000 to $750,000 with terms of up to 1 year, depending on their accounts. Unlike other short-term business loans, you’re limited to using your funds to purchase inventory specifically for sale on Amazon.
From what we’ve gleaned through online forums, former borrowers cite terms as short as three months and APRs that range from 3% to 16.9%.
If you receive an offer, you can use the calculator below to determine your potential monthly repayments.
Monthly repayments calculatorCalculate how much you could expect to pay each month
|Loan terms (in years)|
How it works
Because your personal details and customer and sales metrics are already with Amazon, there’s little to do on your end. Applying sounds as easy clicking an offer from your seller dashboard and waiting for a decision.
Your offer will likely be dependent almost entirely on your sales metrics, customer reviews and total revenue. Posts on forums often say they are given loan terms with higher APRs — expected for a short-term loan — and that Amazon didn’t look much at their overall financial statements.
What do I need to qualify?
Amazon Lending is by invitation only, and eligibility requirements aren’t easy to find online. According to Amazon, the best way for a seller to receive an offer is to meet these two criteria:
- Maintain good customer metrics
- Prove a steady increase of sales
Customer metrics include anything from cancellation and order defect rates, to policy violations, to how fast you respond to customers. You may also need to meet a minimum sales requirement — at least $10,000 in the past 12 months. Amazon sellers who have received offers report in Amazon’s forums that they got their first offer one around their one-year selling anniversary.
What information do I need to apply?
While Amazon doesn’t provide an exact list of documents and information you’ll need to complete your application, previous borrowers reported online that they were asked to provide this information:
- Proof of sales
- A–Z claims
- Sales trends — monthly, quarterly, annually
Your exact experience will be different. When you apply, Amazon will work with you to get the information it needs to finalize your loan.
What industries does Amazon Lending work with?
Amazon exclusively works with its sellers. If you aren’t already selling on Amazon — or you’re in an industry that doesn’t rely on product sales — you will need to shop for a different loan.
What are my alternatives to Amazon Lending?
Amazon Lending isn’t for everyone. If you’re wary about becoming too dependent on Amazon, or simply need a loan to expand your business in another direction, you have options.
|Loan type||Loan amount||Best for|
|Business term loan||$5,000 to $5 million||Larger expenses, like expanding your warehouse or buying equipment||Read more|
|Business line of credit||$5,000 to $5 million||Access to working capital to cover the costs of purchasing inventory and other daily expenses||Read more|
|Merchant cash advance||$2,500 to $250,000||Business owners who need access to working capital but don’t have the best credit||Read more|
|Personal loan||$1,000 to $100,000||Startups or newer businesses that need small amounts to cover everyday expenses and fulfill orders||Read more|
- No credit checks
- No origination fees, application fees or prepayment penalties
- Funding based on metrics and sales
- Invitation only
- Must be used to fund Amazon business
- Limited information available
See other top business loan options
Is Amazon Lending legit?
Does Amazon Lending get good customer reviews?
Amazon is tight-lipped about its loan program, which means there aren’t customer reviews on sites like Trustpilot or the Better Business Bureau.
However, Amazon forum sellers paint a decent picture of what to expect: Many borrowers cite low rates, fast approval and quick turnaround. They sound happy overall, offering complaints that revolve around the way Amazon deducts payments — monthly from your seller account. Some say this can strain a small business’s finances, warning future borrowers to take that into account before agreeing to a loan.
How do I apply?
You can’t apply to Amazon Lending directly, but you can position yourself for an offer by building your business, developing good customer relationships and increasing sales.
Amazon looks at sales volume and other metrics to find businesses that are a good fit for the program. Many borrowers mention getting their first offer from Amazon Lending a year after setting up their Amazon shop.
If you do get an offer, gather any required documents — most lenders require proof of sales and tax records — and work with Amazon to complete the application.
What happens after I apply?
How long it takes to hear back about your loan varies across borrowers: Some say they received a decision in minutes, while others waited up to two weeks. Once approved, however, you could get your funds deposited into your Amazon seller account on the same day — but again, the exact turnaround will vary.
How do repayments work with Amazon Lending?
Payments are deducted automatically every month, and you can choose biweekly repayments to lower the cost of interest. Amazon doesn’t appear to charge prepayment penalties, meaning you can save on interest by repaying your loan early. If you fail to repay your loan, Amazon may seize your inventory or future sales to cover the outstanding balance.
Because payments are automatic, keep a close eye on your seller account and loan balance. If you notice anything off or have questions, reach out to Amazon Lending as soon as possible.
Amazon is a short-term solution to help cover inventory and stock costs. For long-term options meant to grow your business, compare more business loans to get the most competitive deal.