For people looking forward to start a retailing business on Amazon, they should know the most important thing that would take their business to the next level is to expand and maintain the inventory. This however, is a costly procedure and needs a little help from the outside called as the Amazon Business Loan.
What is Amazon Business Loan?
Amazon loan commenced in 2011 and is an invitation-only program. The lending features only short-term loan and is extended to only Amazon sellers. The limit that a seller can borrow varies from thousand dollars to up to seventy-five hundred thousand depending on the individual’s account. What set Amazon’s loan from other short-term loans is the limitation that restricts seller to only use it for the expansion of the inventory for the sale at Amazon specifically.
Any further details about eligibility criteria, minimum loans limit and interest rates are not specified by Amazon and therefore, the information is limited. However, from the details curated from various forums on the internet, the terms are found to be as less than three months while the annual percentage rates or APR is found to be varying from 3% to 16.9%.
Applying for Amazon business loan isn’t an arduous procedure as all the individual’s information; from their personal to their sales data is already available to Amazon and all a seller has to do is to apply for it. To know more about signing up for Amazon loan, see 6 ways Amazon sellers can get business loans. The duration of waiting lasts from minutes to even weeks depending on Amazon itself but once approved, the loan is funded within the same day. When it comes to repayments, it is also a simple process as they are automatically taken or withdrawn from the seller’s account every month. In case of failure to repay the loan, Amazon either seizes the seller’s inventor or any payments owed to the individual from their account to recover its loss.