Amazon Lending review December 2018 | finder.com

Amazon Lending business loans review

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Short-term loans up to $750,000 exclusively for Amazon sellers.

Want to expand your Amazon product line but struggling to secure financing? Amazon Lending is an exclusive program offering short-term loans to help sellers cover the costs of restocking or purchasing new inventory. But not just anyone can apply: You’ll need to wait for Amazon to send you an offer.
Product NameAmazon Lending
Min Loan Amount$1,000
Max. Loan Amount$750,000
APRVaries
Interest Rate TypeFixed
Maximum Loan Term1 year
RequirementsGood customer metrics and profitable business
  • Maintain good customer metrics.
  • Have increasing sales.

First, do I qualify?

Amazon Lending is by invitation only, and eligibility requirements aren’t easy to find online.

Amazon says the best way for a seller to receive an offer is to:

  • Maintain good customer metrics.
  • Have increasing sales.

Customer metrics include anything from cancellation and order defect rates, to policy violations, to how fast you respond to customers. In online forums, Amazon sellers who’ve received offers report that they got their first one around their one-year selling anniversary.

What is Amazon Lending?

Started in 2011, Amazon Lending is an invitation-only program that offers short-term loans to Amazon sellers. Sellers can borrow anywhere from $1,000 to $750,000 with terms of up to 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.

That’s about as specific as Amazon gets with the details. It doesn’t provide information to the public about eligibility requirements, minimum loan terms or interest rates.

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%. Applying sounds as easy clicking an offer from your seller dashboard and waiting for a decision. Because your personal details and customer and sales metrics are already with Amazon, there’s little to do on your end.

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 as quickly as the same day.

Repayments are automatically withdrawn from your Amazon seller account each month. If you fail to repay your loan, Amazon recoups its losses by confiscating your inventory stored at its fulfillment centers or withholding payments owed to you from your seller account.

What makes Amazon Lending unique?

Unlike most short-term business lenders that allow anyone to apply, Amazon Lending invites select sellers to apply for its loans. If you prequalify, you’ll receive a message in your Amazon account with an offer based on your Amazon sales and metrics.

Amazon determines if you’re a good fit for the program before extending an offer, resulting in financing that’s often faster than through a traditional lender. But it doesn’t mean you’re guaranteed approval. Several borrowers say they received offers Amazon ultimately turned them down for.

However, some approved customers say they received a decision in minutes, with their funds disbursed on the same day. This is fast turnaround compared to online lenders that can take a few days to get you your funds.

What are the benefits of Amazon Lending?

  • Easy application. With so much of your info already with Amazon, after you’re extended an offer, you’re clicks away from an approval decision.
  • Wide range of loan amounts. Depending on how well your Amazon business is doing, you could borrow as little as $1,000 or up to $750,000 to restock inventory.
  • Based on metrics and sales. While Amazon doesn’t disclose eligibility requirements, it bases offers on customer metrics and sales. Your credit score might not play as large a role as it would with a traditional lender.
  • Fast turnaround. Former borrowers say they were approved for a loan in as little as an hour and received their funds the same day.

What to watch out for

  • Invitation only. Amazon Lending extends loans to businesses it believes will succeed with extra inventory. If your business doesn’t sell enough or have the best customer reviews, you might not receive an offer.
  • Restricted uses. Use the proceeds of your loan to purchase inventory or expand your Amazon business only.
  • Automatic payments. Amazon deducts payments from your seller account every month. If you don’t have enough to cover them, it can withhold payments or seize your inventory to repay your outstanding balance.
  • Short terms. Amazon Lending is designed to cover short-term cashflow problems, with former borrowers stating they had between three and 12 months to pay back what they borrowed.
  • Limited information available. Amazon Lending doesn’t divulge terms, rates or eligibility requirements to the general public about its loan offers.

Compare more business loan providers

Rates last updated December 14th, 2018
Unfortunately, none of the business loan providers currently offer loans for these criteria.
Name Product Product Description Min Loan Amount Max. Loan Amount Requirements
LoanBuilder, A PayPal Service Business Loans
Customizable loans with no origination fee for business owners in a hurry.
$5,000
$500,000
Annual business revenue of at least $42,000, at least 9 months in business, personal credit score of 550+.
LendingTree Business Loans
Multiple business financing options in one place including: small business loans, lines of credit, SBA loans, equipment financing and more.
Varies by lender and type of financing
Varies by lender and type of financing
Varies by lender, but you many require good personal credit, a minimum business age and minimum annual revenue.
Credibly Business Loans
Funding to cover business expenses with daily or weekly repayments.
$5,000
$250,000
500+ personal credit score, 6+ months in business, $15,000+ average monthly deposits
Lendio Business Loan Marketplace
Submit one simple application to potentially get offers from a network of over 75 legit business lenders.
$500
$5,000,000
Must operate a business in the US or Canada, have a business bank account and have a personal credit score of 560+.
National Funding Small Business Loans
Working capital loans and equipment financing, some high-risk industries may be eligible.
$5,000
$500,000
Be in business at least one year and make at least $100,000 in annual sales. Other loan types have additional requirements.
LendingClub Business Loans
With loan terms that vary from 1 to 5 years, enjoy fixed monthly payments and no prepayment penalties through this award-winning lender.
$5,000
$300,000
12+ months in business, $50,000+ in annual sales, no bankruptcies or tax liens, at least 20% ownership of the business, fair personal credit score or better
OnDeck Small Business Loans
A leading online business lender offering flexible financing at competitive fixed rates.
$5,000
$500,000
500+ personal credit score, 1+ years in business, $100,000+ annual revenue
Fora Financial Business Loans
No minimum credit score requirement and early repayment discounts for qualifying borrowers.
$5,000
$500,000
Business age 6+ months. Monthly revenue $12,000+. No open bankruptcies.

Compare up to 4 providers

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 typeLoan amountBest for
Business term loan$5,000 to $5 millionLarger expenses, like expanding your warehouse or buying equipment.Read more
Business line of credit$5,000 to $5 millionAccess to working capital to cover the costs of purchasing inventory and other daily expenses.Read more
Merchant cash advance$2,500 to $250,000Business owners who need access to working capital but don’t have the best credit.Read more
Personal loan$1,000 to $100,000Startups or newer businesses that need small amounts to cover everyday expenses and fulfill orders.Read more

What do other customers say about Amazon Lending?

Not much. Amazon is tight-lipped about its loan program, which means there aren’t many 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 does the application process work?

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.

I got the loan from Amazon Lending. Now what?

Once you’re approved for financing, Amazon deposits your funds into your Amazon seller account. From here, your payments are deducted automatically every month for the term of your loan.

Many former borrowers say they set up biweekly payments for easier repayments. 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.

Bottom line

Amazon Lending is an exclusive short-term loan program offered to sellers that already do business through the Amazon Marketplace. The wide range of funding available can help you secure inventory when your cash flow has taken a hit.

However, it’s by invitation only structure. And a lack of transparency around rates and terms makes it difficult to nail down what you might qualify for.

Before jumping into a loan with Amazon, compare your business financing options to get the most competitive deal you’re eligible for.

Frequently asked questions

Kellye Guinan

Kellye Guinan is a writer and editor with finder.com 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.

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