How Do Sellers Get Loans on Amazon?
When someone starts an online business on Amazon, the next biggest question they're likely to ask is, how do I get a loan on Amazon? These days it is very possible for a person to get a loan on Amazon. Many online financing companies make this possible through the use of Amazon logos. If you already have an Amazon affiliation, you'll find many options available to you. Just as there are many lenders who specialize in offering loans on Amazon, there are also many online sites that offer loans for people who want to purchase products on Amazon.
Amazon Lending is an application program where Amazon provides short term business financing to selected vendors so they can fund additional inventory on Amazon to resell through the Amazon marketplace. Amazon loans are non-recourse, non-guaranteed and interest rates range from five to seventy-five percent. The application process involves listing the vendors whom you would like to obtain a loan from.
Amazon Lending is an application program where Amazon provides short term business financing to selected vendors so they can fund additional inventory on Amazon to resell through the Amazon marketplace. Amazon loans are non-recourse, non-guaranteed and interest rates range from five to seventy-five percent. The application process involves listing the vendors whom you would like to obtain a loan from.
There are two primary ways to apply for an Amazon loan.
- First, there's the" Seller Funded" application where you send a completed application to Amazon through their web portal.
- Second, some sellers opt to use "invoice financing" which is basically an invoice financing option available through third party financial institutions.
Either way, sellers must meet certain criteria which involve having sales history, and having a working bank account. The seller can also apply for an on-line invoice financing loan from any bank which accepts credit cards.
When applying for an on-line loan, some sellers report having a much easier time getting approved because it's done online and only requires an active bank account. This is because all loan applications, both online and off-line, are processed by Amazon's verification system. If a seller does not have a working bank account, the seller's personal credit score will be required to determine if the bank account is still active and free of any outstanding debts. Once this information is verified by Amazon, an approval for an online loan is given.
Another way to apply for a short-term business loan on Amazon is through an "e-mail for business" or "invitation to apply." An e-mail for business usually requires the following information: name, address, phone number, email address, date of birth, social security number, current employer, bank account number, and a few other pieces of information which the company will need for verification purposes. Some sellers report that an "invitation to apply" is even easier than having a verified Amazon account. Basically, this type of application merely requires the submission of a completed electronic worksheet or questionnaire. After a few short minutes, a response is usually sent to the seller by the finance company.
It should be noted that sellers will typically pay a higher interest rate when applying for a short-term loan on Amazon. Also, there will usually be additional closing fees and charges. Auctions that end within 90 days usually have no closing fees. In fact, it has been noted by many business lending experts that sellers may wish to get two separate loans if their first one looks like it might not go through. By getting a second loan, a seller can ensure that he or she will have enough money to repay the short-term purchase price.
When applying for an on-line loan, some sellers report having a much easier time getting approved because it's done online and only requires an active bank account. This is because all loan applications, both online and off-line, are processed by Amazon's verification system. If a seller does not have a working bank account, the seller's personal credit score will be required to determine if the bank account is still active and free of any outstanding debts. Once this information is verified by Amazon, an approval for an online loan is given.
Another way to apply for a short-term business loan on Amazon is through an "e-mail for business" or "invitation to apply." An e-mail for business usually requires the following information: name, address, phone number, email address, date of birth, social security number, current employer, bank account number, and a few other pieces of information which the company will need for verification purposes. Some sellers report that an "invitation to apply" is even easier than having a verified Amazon account. Basically, this type of application merely requires the submission of a completed electronic worksheet or questionnaire. After a few short minutes, a response is usually sent to the seller by the finance company.
It should be noted that sellers will typically pay a higher interest rate when applying for a short-term loan on Amazon. Also, there will usually be additional closing fees and charges. Auctions that end within 90 days usually have no closing fees. In fact, it has been noted by many business lending experts that sellers may wish to get two separate loans if their first one looks like it might not go through. By getting a second loan, a seller can ensure that he or she will have enough money to repay the short-term purchase price.
