Marcus by Goldman Sachs business line of credit review
Amazon and Walmart sellers may be able to take advantage of this new financing option.
Bottom line: Amazon Lending and Marcus by Goldman Sachs are working together to offer a line of credit to business owners already signed up as Amazon sellers. But only businesses with an offer can apply. Read the full review.
First, do I qualify?
There are no set eligibility requirements for the Marcus by Goldman Sachs business line of credit. In general, most lines of credit require you to have been in business for at least two years and be based in the US. Marcus continually monitors business eligibility even after approval. All businesses must continue to meet requirements when they request funds from the line of credit.
If you’re eligible, you’ll receive a notification on your Amazon Sellers or Walmart Seller Center page with a link to apply for funding.
How much does the Marcus line of credit cost?
Businesses will have a maximum credit limit between $10,000 to $75,000 — although Marcus has plans to increase the maximum limit in the future. Interest rates range from 6.99% to 20.99%, relatively low compared to other similar providers. This includes an origination fee and annual maintenance fee, which Marcus will waive if your business is using more than 30% of its credit line.
The only other fee you might pay is a late fee of either $25 or 5% of the late payment, whichever is greater. However, exact terms depend on whether your business is set up with Amazon or Walmart. Some costs and fees may change, so check with Marcus to confirm what your business will need to pay.
What makes the Marcus by Goldman Sachs business line of credit unique?
Marcus by Goldman Sachs business lines of credit are available by invitation only through Amazon or Walmart, with plans to eventually roll out availability to more business owners. The application process is similar, but it serves a slightly different need than the Marcus business line of credit: While you can use the line of credit for any rolling business expense like payroll, each draw is primarily designed to cover a one-time cost.
How does the Marcus line of credit compare to Amazon Lending?
Amazon also offers to its marketplace merchants short-term loans of $1,000 to $750,000 with terms of up to 1 year through Amazon Lending. The application process is similar, but it serves a slightly different need than the Marcus business line of credit: While you can use the line of credit for any rolling business expense like payroll, the loan is primarily designed to cover a one-time cost.
Amazon Lending typically relies at factors like sales growth and customer reviews. But it’s possible Marcus might also consider factors like time in business and your personal credit score. The line of credit might also offer a faster option than Amazon Lending, which typically takes five days from applying to process. While Marcus hasn’t released information about the turnaround time on its new product, it can take as little as two days to fund a typical personal loan.
- Revolving lines up to $75,000
- Low minimum draw of $500
- Request funds at any time after approval
- Exclusive to Amazon or Walmart sellers
- High maximum interest rate of 20.99%
Compare other business loan options
If you’re not yet eligible for the line of credit, you can compare more options by selecting your loan amount, annual revenue, time in business and personal credit score range on our table. Then click Show Loans to see potential lenders.
We update our data regularly, but information can change between updates. Confirm details with the provider you're interested in before making a decision.
How do I apply?
You won’t be able to apply for a line of credit directly. If you’re eligible, your Amazon Seller or Walmart Seller Center page should contain an announcement that your business qualifies. Good sales metrics and positive customer relationships will likely improve your chances of being preapproved.
If you’re eligible, click on the announcement. This redirects you to the Marcus website where you can fill out an online application. If you have any questions, reach out to the business lending department at Marcus by Goldman Sachs by calling 833-906-2224.
Marcus should let you know your approval status within two to five business days. If you’re approved for a line of credit, you’ll be able to make a draw when you need — with a low minimum draw amount of $500. Each draw request must be approved by Marcus, and if rejected, you may not be able to make another draw from your line for 30 days.
How do payments work?
For Walmart sellers, the line of credit has a 12-month draw period, with a minimum payment due every two weeks. Once the draw period is up, borrowers have the option to renew the credit line. Otherwise, they can repay the remaining balance like a term loan over the next 12 months, and there’s no penalty for paying it off early.
There are no additional details available on how payments for the line of credit work with Amazon. Because it is revolving, you will be able to pay it off and draw again — up to your credit limit — as needed. You will also have a set payment term of one year. For additional details on payment options and additional fees, visit the help page on Amazon Seller Central or reach out to Marcus by Goldman Sachs.
Small business alternatives
If your business hasn’t qualified for a Marcus business line of credit, other online providers offer loans for e-commerce businesses.
For example, the lender Kickpay specializes in inventory financing for fast-fashion businesses with online stores at a fixed cost of 3% to 7% of the advance amount. And Clearbanc offers advances to online retailers for a wide range of expenses, charges a fee of 6% to 12.5% of the advance amount. Both ranges of fees are low compared with other merchant cash advance companies.
Business lines of credit can be less expensive than a merchant cash advance, but they rely on factors like time in business, revenue and credit scores to qualify for. Merchant cash advances also tend to have high approval rates. Cash advance companies look at factors like your sales history when underwriting your application and typically don’t consider personal credit, though some come with fixed fees equivalent to 300% APR. The expense — and quick repayment period — of a merchant cash advance may put a strain on your business.
Reach out if a lender isn’t up front about the cost of financing online before you apply. And compare multiple offers before deciding on one lender.
Marcus by Goldman Sachs’ exclusive line of credit is only available to select Amazon sellers. If you don’t have an offer, compare alternative business loans.
Anna Serio is a trusted lending expert and certified Commercial Loan Officer who's published more than 1,000 articles on Finder to help Americans strengthen their financial literacy. A former editor of a newspaper in Beirut, Anna writes about personal, student, business and car loans. Today, digital publications like Business Insider, CNBC and the Simple Dollar feature her professional commentary, and she earned an Expert Contributor in Finance badge from review site Best Company in 2020.
Amazon Lending has partnered with online lender Marcus by Goldman Sachs to offer lines of credit to select merchants. Eligible sellers can apply for a revolving credit line with limits of $10,000 to $75,000 and interest rates between 6.99% APR and 20.99%. The goal of the new financing program is to help Amazon sellers grow by covering costs like working capital, expanding product development and marketing.
But like Amazon’s other financing option, it’s invite-only. You won’t be able to apply for the line of credit — you’ll simply be offered it on your Amazon Sellers page. If you can’t wait for the invitation, compare more business financing options.