Compare business loans for Amazon sellers

Can I get a loan for an Amazon business?

If your business has been profitable for the last one to two years and you have a good credit score, you may qualify for an Amazon business loan from a bank or credit union. If not, you can turn to online lenders, who tend to have easier eligibility requirements.

6 business loan options for Amazon sellers

Here are some financing alternatives that can help you shore up your cash flow or reach more customers.

1. Amazon Lending

If you’re a seller who’s been with Amazon for at least a year and have sold at least $10,000 worth of goods, you may receive an offer from Amazon for a direct short-term loan. Amounts typically range from $1,000 to $750,000 with terms of up to 12 months, depending on your seller account. Even though Amazon doesn’t advertise the terms you might be offered, former borrowers cite interest rates ranging from 6%–18%.
A major downside of the Amazon business loan program is that your funds can only be used for your Amazon business. If you need capital to diversify your online store outside of the Amazon Marketplace, you’ll have to look elsewhere.

How to get a loan from Amazon

1. Sign in to Seller Central, the interface that merchants use to manage their products and sales.
2. Navigate to the Growth tab. If your business is eligible, you’ll see a sub-option titled Lending that you can click on.
3. Select the financing option that’s best for you (from a business line of credit, term loan or merchant cash advance) up to the amount that you’re eligible to receive.
4. If approved, you should see the funds within five business days.

2. Business line of credit

A business line of credit functions much like a credit card, offering flexibility when you need funds. This is especially useful for Amazon sellers looking for financial flexibility without being tied to a specific marketplace like Amazon Lending.

• Credit amounts range from $5,000 to over $1.25 million.
• A credit line can be a handy tool to pay for marketing services or hire seasonal help to fulfill your orders.
• Interest rates range from 4.95% to 39.99%, with some providers also charging a monthly or annual fee.

3. Merchant cash advance

Because Amazon businesses bring in the majority of their revenue through credit card sales, a merchant cash advance could help if you’re having cash flow issues. Essentially, you borrow a lump sum based on your credit card sales, then repay it through a fixed fee (known as a factor rate) plus a percentage of your daily or weekly sales.

• Loan amounts range from $500 to $500,000.
• Quick funding is available, often within a few days.
• Factor rate ranges from 1.1 to 1.5.
• Repayment is difficult if your business is making only a few large sales each month.

4. Business term loan

If you need a large influx of capital, a business term loan might be a solution. Many banks and credit unions offer these loans, but you may find approval easier with an online direct lender, which typically has less stringent eligibility criteria.

• Loan amounts range from $1,000 to more than $1.5 million, depending on your annual revenue and credit history.
• Repayment terms usually span from 3 months to 10-plus years.
• Fixed monthly repayments, including interest charges (5.00% - 39.99%) and possible additional fees.

Because of the large variety of small business loans for Amazon sellers, start your research by pinpointing exactly what you need the money for, and create a business plan to understand costs and goals.

5. Peer-to-peer business loan

A peer-to-peer (P2P) business loan connects borrowers directly with investors through online platforms. P2P providers handle the application, underwriting, and repayment, but the actual funding comes from individual investors.

• Interest rates range from 5% to 25%, depending on the lender and the amount of money required.
• Loan amounts can also range from as little as $1,000 to $15 million.
• Since P2P providers don’t have the same return on investment as direct lenders, they typically charge higher fees and interest rates.

6. Personal loan

Personal loans are good for online merchants who are just getting started on Amazon or other selling platforms, especially if you don’t have an established business credit score. Some lenders allow you to use a personal loan for business expenses.

• Personal loan amounts range from $500 to $50,000.
• By law, lenders can’t charge more than 35% APR, but some start as low as 6%.
• Repayment terms usually range from 6 – 60 months, with some extending longer.

7. Inventory financing

Inventory financing is a short-term loan that you can use to buy products for your Amazon storefront. Although you can use any type of business loan to purchase inventory, inventory financing is designed specifically for this purpose—often offering faster approvals, collateral terms based on your stock and repayment structures that align with your sales cycle.

• Borrow up to $500,000, typically sent directly to your supplier.
• Ideal for restocking in-demand items or preparing for busy seasons.
• Receive 80% to 90% of your inventory’s liquidation value.

How to decide which business loan for Amazon sellers is best for you

• Consider your budget: The best loan offer is the one your business can afford. You don’t want to put yourself in debt trying to pay it off.
• Assess your Amazon experience: If you’re operating solely through the Amazon Marketplace and have been around for at least a year, Amazon Lending offers solid terms for its sellers.
• Determine when you need the money: If you need a fast turnaround, apply to an online lender. They are faster than banks and can fund loans in 24 to 72 hours.
• Evaluate long-term options: A longer-term loan might be better if you’re planning to expand beyond Amazon or refinance large debts. Business term loans tend to offer the longest terms and highest available loan amounts. Some require collateral, which can lower your interest rate—but also increases risk if you default.

What can I use an Amazon business loan for?

• Marketing. Eager to get more customers through Amazon? Dedicating a portion of your budget to website design, Facebook and email marketing can be effective ways to attract more business.
• Inventory. When you’re selling goods on Amazon and other ecommerce sites, restocking inventory can be the bulk of your expenses.
• Fulfillment by Amazon costs. If your orders are processed through Fulfillment by Amazon (FBA), you’ll need to account for storage and shipping costs on top of Amazon’s usual fees.
• Selling plan fee. Amazon sellers pay $29.99 a month (accurate as of April 2025) as a professional selling plan fee. Nearly $360 over the course of a year can be pricey if you’re just starting out. A small line of credit or personal loan can cover this cost while you build your business.
• Referral fees. Amazon charges variable referral fees for items in different categories, typically between 8% and 15%. If you need extra capital before the rest of your current inventory has sold, a small loan may help cover related costs.

What do I need to apply?

No matter the type of Amazon business loans you’re applying for, you’ll need to provide basic documentation that usually includes:

• Personal details and contact information.
• Business and personal tax returns.
• Business and personal bank statements.
• Profit and loss statements.
• A detailed business plan.
• Financial records.

Lenders will check your credit history for any past defaults or bankruptcies when reviewing your application, but a few imperfect areas won’t necessarily exclude you from approval. Focus on what you control—like creating a top-notch business plan—to make up for any blemishes on your credit report.

What challenges might I face getting a business loan for Amazon sellers?

As an Amazon seller, you may encounter these challenges when trying to secure financing:

• Lack of business history. Traditional lenders often avoid new or small online businesses without a proven track record.
• Limited revenue. If you don’t have enough revenue or haven’t been in business long enough, you may not qualify for the Amazon business loan program or similar loans.
• Higher costs from alternative lenders. If you don’t qualify for traditional loans, non-traditional lenders (like online lenders or peer-to-peer lending platforms) may be an option. However, these lenders often have higher interest rates.
• Credit challenges. Lenders may review both your personal and business credit history. If you’ve had late payments, high debt utilization or a bankruptcy on record, it could limit your financing options.

If you face these issues, look for loans designed for startups and small businesses instead. These loans can help build your initial capital when you don’t have much experience or brand power.

7 ways to become a successful Amazon seller

Amazon’s top sellers offer a number of strategies that can help you take your business to the next level:

• Research your niche. Whether you sell products across categories or focus solely on a single niche, get to know your market inside and out. Learn how others advertise and price similar items to find a competitive edge.
• Build a brand. Amazon has thousands of sellers all vying for customers’ attention. Set yourself apart with branding that highlights what makes you unique—or what you offer that others don’t.
• Market your page. Even if you aren’t running a dedicated website aside from Amazon, it doesn’t mean you should skip out on marketing. Reach out through forums and social media to get people familiar with your products.
• Encourage reviews. Reviews can be crucial to an Amazon seller, especially if you hope to qualify for Amazon Lending down the road. Solid customer service may give you an advantage over your competition.
• Offer sales and promotions. Discounts and sales around the holidays can help build clientele and increase your sales. Plus, that extra revenue can offset cashflow lulls in the off-season.
• Review your metrics. Understanding the data behind your business— sales, product views and returns—can help you form a strategy to improve numbers in the future.
• Use Fulfillment by Amazon. FBA is often cited as a vital tool in stepping up your Amazon business. Although it cuts into your revenue slightly, not having to package and fulfill every purchase generally saves time and money in the long run. It can be especially helpful if you’re selling via other platforms.

How can I be sure my Amazon business is ready for a loan?

Consider both your current financial situation and your goals. Every business runs differently, but capital can be a valuable way to invest in the future.
Before you start your search for a loan, talk with an accountant or business professional to create a solid business plan. Some questions to ask yourself include:

• Where do I see my business in the next few years?
• What financing option would be best suited for my business and current financial situation?
• What is the purpose of this loan?
• How much money will I need to borrow?
• What are my payment options?
• How quickly can I pay back my debt?

Bottom line

Like any business, selling on Amazon takes careful forethought and planning. You may be tempted to sign the first loan you’re offered, but building a business plan and considering your options first is key to finding the best rates and terms you’re eligible for. If successful, securing an Amazon business loan is a great way to generate capital quickly that can assist in marketing, development and shipping costs.

Frequently asked questions

• Can I get a business loan as an Amazon seller with bad credit?

  Yes, but options may be limited. Alternative lenders often accept lower credit scores, but they come with higher costs. A strong Amazon sales record can help offset poor credit. Learn more about bad credit business loans.

• Should I use Fulfillment by Amazon?

  It depends on your business. Many successful entrepreneurs say that FBA saved their business time and ultimately money. But if you're small and don't yet have a lot of customers, it may be more cost effective to fulfill orders by yourself or with a small team.

• Does Amazon charge a per-item fee for professional sellers?

  No. If you have a professional plan with Amazon, you won't have to pay a per-item fee when you sell on the Amazon Marketplace.

To make sure you get accurate and helpful information, this guide has been edited by Leanne Escobal as part of our fact-checking process.

Written by

Rebecca Low

Writer

Rebecca Low is a writer for Finder. She has contributed to a range of digital publications, including income.ca, Indeed, and Expatden, writing on topics like personal finance, career development, and travel. See full bio