Cashflow solutions up to $100,000 made for Amazon sellers.
It might not be so helpful when things are slow, since you only have up to nine months to pay back your loan. Sounds like what your business is looking for? Read on to find out how a SellersFunding business loan works.
| Product Name | SellersFunding Business Loans |
|---|---|
| Min Loan Amount | $5,000 |
| Max. Loan Amount | $100,000 |
| APR | 14.99% (Starting at) |
| Interest Rate Type | Fixed |
| Minimum Loan Term | .33 year |
| Maximum Loan Term | .66 year |
| Requirements | Have six months of Amazon sales history, made at least $30,000 over the past six months, have positive customer feedback, have few returns, have consistent sales activity. |
- Have six months of Amazon sales history
- Made at least $30,000 over the past six months
- Have positive customer feedback
- Have few returns
- Have consistent sales activity
First, do I qualify?
SellersFunding doesn’t have any hard eligibility requirements, though being an Amazon seller makes it a lot easier to get approved. Your business might also have an easier time getting approved if it’s been around for at least six months. Sales activity, customer feedback and the percentage of returned items all factor into your chances of approval.
What is SellersFunding?
SellersFunding is an online direct lender that offers unsecured short-term loans. SellersFunding requires business owners to back the loan with a personal guarantee. This means that the business owner is on the hook for paying off the loan if the business folds or can’t pay back the debt.
SellersFunding uses an algorithm-based underwriting system, meaning that your business can get approved in around a minute. After you’ve accepted the loan and submitted all documents, it typically takes between two and three business days to get your funds.
What’s unique about a SellersFunding business loan?
While there’s no restriction on what type of business can apply for a SellersFunding business loan, it’s made to meet the specific needs of Amazon sellers. The application doesn’t take more than a few minutes and is primarily based on the past six months of sales. The short terms make the loan especially useful for businesses that need funding to prepare for an uptick in sales to purchase inventory, bring on more staff and more.
SellersFunding revenue advance
In addition to short-term business loans, SellersFunding also offers what it calls a “revenue advance” for e-commerce merchants. This works a lot like a merchant cash advance with a twist: SellersFunding uses an algorithm to predict your business’s next 90 days of online sales and offers a 15% advance on the funds to help improve cash flow. Then, your business pays it back with a daily percentage of its online sales.
SellersFunding charges a 5% advance fee, which it takes directly from your funds before you receive them. So, your business is on the hook for paying back 15%, but actually only receives 10% of its predicted future sales. Typically, it takes around 48 hours for your business to receive its funds after finalizing the application.
What are the benefits of a SellersFunding business loan?
- Few fees. SellersFunding asks for a one-time processing fee of $50 — generally much lower than the typical origination fee of 1% to 5% that many business lenders charge. There are also no prepayment fees.
- Made for e-commerce. SellersFunding could be a great financing option for your e-commerce business if more traditional loans don’t meet your business’s needs.
- Quick application. While the turnaround time might not be as fast as some online business lenders, your business can get preapproved in as little as 60 seconds.
What to watch out for
- Short terms. SellersFunding offers loan terms from three to nine months. Short-term loans can be risky for businesses, especially if your sales don’t pan out to be as high as predicted.
- Sometimes advertises a monthly rate. Rates as low as 1.25% might sound too good to be true — and that’s because it is. SellersFunding sometimes advertises a monthly rate, which can be easy to confuse with the annual rate if you don’t look closely enough. APRs start at 14.99%, not 1.25%.
- Vague requirements. Just because SellersFunding doesn’t have hard eligibility requirements doesn’t mean that just any business can get approved. It just means that it’ll be more difficult to tell if your business is eligible before you apply.
- Amazon-centric. While SellersFunding isn’t affiliated with Amazon, its application is designed for Amazon retailers and the majority of its clients sell on the online platform.
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What do customers say about SellersFunding?
Not much, but what’s there is positive. SellersFunding doesn’t have a Better Business Bureau page as of July 2018. But it does have just over 40 excellent reviews on Trustpilot. It scores a 9.6 out of 10 on the online reviewer site, with a glowing 100% of reviewers rating it as excellent.
Almost every reviewer mentioned how easy and quick the funding process was. Several also mentioned that the staff was helpful and professional. At least one was pleased with the rates their business was approved for.
How do I apply?
Since SellersFunding uses an algorithm to determine your eligibility, you need to apply online. While there are no strict eligibility requirements, you’ll typically have an easier time getting approved with a loan if your business:
- Has six months of Amazon sales history
- Made at least $30,000 over the past six months
- Has positive customer feedback
- Has few returns
- Has consistent sales activity
Steps to apply
- Go to the SellersFunding website and click Apply Now.
- Hit Apply for a Term Loan.
- Scroll down until you see the Apply Now button and click on it again.
- Enter your first name, last name, email and phone number. If you have an Amazon seller name, provide that as well before hitting Apply Now.
- Confirm your personal information and click Next.
- Fill out the required field with information about your business, and click Next.
- Complete the form with personal information for each business owner. Then click Next.
- Answer a few more questions about your business and enter the amount you want to borrow, how long you’d like to wait before starting repayment, the loan term (called tenor) and how your business plans on using the funds. Then hit Next.
- Upload your business payment settlements, sales and order reports and latest inventory reports.
- Read the disclosures and check the box at the bottom of the page before hitting Next.
- Wait for SellersFunding to process your application. If preapproved, follow the directions to upload additional documents and sign your business’s final loan documents.
As long as you have your business’s documents on hand, applying shouldn’t take more than a few minutes. Your business can receive its funds in as little as two or three business days after submitting the final loan documents.
What documents do I need to apply?
SellersFunding asks you to upload the following documents during the application:
- Amazon sales and order report. SellersFunding wants to see your business’s last 12 months of sales and order reports, if possible.
- Amazon inventory report. SellersFunding accepts both inventory stock reports or fulfilled inventory reports for this option.
- Amazon payment settlements. Your business is also required to submit the past six months of payment settlements when it first applies.
What if I’m not an Amazon seller?
You might want to reach out to the SellersFunding customer service team by calling its customer service line between 9 a.m. and 8 p.m. ET. It appears that SellersFunding might sometimes work with e-commerce businesses using other platforms. You’ll likely be asked to upload similar documents, though it might vary depending on which online platform your business uses.
I got the SellersFunding business loan. Now what?
It depends on which grace period you chose. Your business might not be on the hook for repayments until 90 days after getting its funds. After that, SellersFunding will most likely start deducting repayments automatically as they’re due. If your account doesn’t have enough funds to make a payment, SellersFunding charges your business a fee outlined in your loan agreement.
Since SellersFunding doesn’t charge prepayment penalties, you might want to consider paying off the loan early to save on interest. However, since its loans come with such short terms, your business might not save as much as it would with a longer-term loan.
Bottom line
If you’re an Amazon seller looking for a short-term loan to pay for inventory or otherwise grow your online business, SellersFunding could be a great choice. Other e-commerce industries might run into some snags in the application, however. It’s also not ideal as a long-term financing solution.
Want to learn about other financing options? Check our comprehensive business loans guide. We’ll give you more details about how business financing works and even more options to compare.
