Selling products on Amazon is a great way to make a seven-figure income (or more).\u00ac\u2020 But many sellers need capital to grow their business. If you’re one of the lucky few that are invited, Amazon offers their \u201a\u00c4\u00faAmazon Loans\u201a\u00c4\u00f9 product.\u00ac\u2020 But is it worth it?<\/p>\n
Summary:<\/strong><\/p>\n Amazon offers their sellers loans based on their sales to help them buy more inventory.\u00ac\u2020 It’s a \u201a\u00c4\u00faby invitation only\u201a\u00c4\u00f9 program that can offer up to $750,000 in instant funding.<\/p>\n Qualifications:<\/strong><\/p>\n If you qualify, Amazon will invite you to take out a loan.\u00ac\u2020 This is much different than what most business owners are used to, by requesting loans through lending institutions.\u00ac\u2020 Since Amazon does not publicize the program, information about how to qualify is scarce. Some data points point to length of time selling among one qualification.<\/p>\n However, Amazon factors volume and velocity of sales as a part of extending an invitation.<\/p>\n Costs:<\/strong><\/p>\n Amazon does not advertise its lending rates.\u00ac\u2020 However, Amazon Sellers have posted various data points online showing the interest rate around 15%, placing Amazon Loans in the same competitive space as business credit cards.<\/p>\n Terms are fixed for this loan and presented to the user.\u00ac\u2020 Payments are taken out directly from your Amazon Sellers account.<\/p>\n How Amazon Loans Differ from Plastiq:<\/strong><\/p>\n Plastiq is the bill pay service that helps you keep more cash on hand.\u00ac\u2020 Plastiq is not a loan nor a line of credit. Unlike Amazon Loans, Plastiq lets you unlock your existing credit by letting you pay your vendors and suppliers with a credit card.\u00ac\u2020 Even when cards aren’t accepted.<\/p>\n