How do you qualify for the Amazon Lending program? Omer Riaz May 11, 2022

How do you qualify for the Amazon Lending program?

amazon seller lending program

As an Amazon seller, you know how expensive it is to start and meet the expense of running a business. Thousands of people want to open their online E-commerce store, some have the potential to meet their business expenses, and few can only imagine sustaining. So, if you are looking for any financial support for your business, you should consider the Amazon Lending Program.

The fundamental aim of this program is to provide loans to Amazon sellers that can assist them in meeting their business goals.  You have to forward your requirements or needs; the lending program will help you scale your business growth.

The article will elaborate on the overview of the Amazon seller lending program and how to qualify for it.

Amazon Lending program

What is the Amazon Lending Program?

Amazon’s lending program is offered to eligible sellers Amazon with short-term financing to scale their businesses. Amazon judges sellers‘ ability to increase sales and deliver a high level of customer satisfaction to determine who qualifies for a business loan. These business loans consist of different timelines from 3 to 12 months.

The financing solution provided by Amazon is a lucrative option for sellers to meet their monetary needs. There are many reasons to apply for this program.

  • Inventory management is the most complex business aspect to handle. Due to the unavailability of funds, few sellers cannot refill their inventory. It happens in the initial business stages. If you face this issue, you can request a loan from Amazon.
  • Every seller wants to innovate their business products by offering something new to their consumers. Launching a new and innovative product needs plenty of financial resources. If you don’t have enough, apply for a loan from Amazon. The loan will help you manage your marketing campaigns and ensure your products reach the targeted audience.
  • Nowadays, sellers need unique marketing and professional online skills to compete in the aggressive business environment. Under the intense business competition, you want to ensure that your products are visible to consumers. So, you need to develop influential strategies to scale your brand. After receiving the loan, you can invest in influencer marketing, optimizing your website, and building brand authenticity.

Who is Eligible for Amazon Lending Program?

Two fundamental factors determine your eligibility for this program which are:

  • Sales growth rate: Your Amazon business account should showcase a consistent growth rate to qualify for the loan. Amazon will examine your account and notify you whether your sales growth is promising enough to pay back the loan or not.
  • Good account standing: Your business account should showcase outstanding customer service and satisfaction. If you don’t meet these criteria, you won’t receive the loan.

The loan is only provided to qualified sellers with the minimum range of 1000 – 750,000 US dollars. Once your loan is approved, you will receive cash. The loan amount can vary depending on your account evaluation by Amazon. Amazon deducts monthly payments from your account on the loan provided.

The interest that sellers can expect from the loan can be between 6-16 percent. After the invitation request for the loan, the Amazon team will get back to you within 4 to 5 working days.

Benefits of the Amazon Lending Program

There are a few substantial benefits of this program which are as follows:

  • If you go to banks to apply for a loan, you will face a complex procedure to get loan approval. On Amazon, using for and receiving a loan is an effortless process. You need to be qualified for the loan. Amazon will evaluate your seller’s central account and let you know if you qualify or not. The provision of a loan solely depends on your Amazon account performance.
  • One has to pay various fees to get a loan and pay it from different financing banks. However, this is not a problem in the case of the Amazon Prime lending program. You have to pay fewer fees over your loan that is not heavy in your pockets. You will save money in the long run, and your business profits will repay this loan within a short time.

Drawbacks of the Amazon Lending Program

Along with the positive aspects, there are some drawbacks that you should consider before applying for a loan.

  • There are fixed monthly deductions from your Amazon account to repay your loan. Whether your sales are boosted or not, the amount will be deducted automatically. For this reason, you must think and analyze whether taking a loan is beneficial for you or not. Evaluate your business performance before taking the loan.
  • If you receive an Amazon loan, hiring new talent or diversifying your brand can be a problem. As it will need extra money, you are bound to focus on the most important goals of your business without investing in other potential aspects.

Conclusion 

The Amazon lending program is beneficial for those with few resources to run their business and feel hard to grow their brand. Under this program, Amazon will provide you with a business loan after evaluating your seller account.

You can use the provided loan to invest in key areas of your business that are promising to enhance your business growth. However, plan how you can make more money from the given loan to return it on time without facing hurdles.

FAQs:

Who are Amazon’s lenders?

Amazon lenders provide you with short-term business loans that you can use to scale your business growth.

How long does Amazon Lending take?

It takes five business days to review your loan application and decide. Amazon may require additional information regarding your business for loan provision.

When did Amazon Lending start?

The Amazon lending program was launched in 2011.