business digital online is small business a new start up in the present for online shop. By woman and man owner have a warehouse used to send to customer. SME entrepreneur concept. concept: Amazon Lending
Max Cordova
By: max
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How Does Amazon Lending Work?

If you are a business owner that operates within Amazon and your business needs a loan and traditional methods of getting a loan aren’t cutting it, you might want to take a look at Amazon Lending. 

We all know Amazon for its marketplace platform where businesses can sell directly to the consumer. Amazon offers great value to both consumers and businesses on the regular. But, did you know that Amazon also lends out money to small businesses within the marketplace? 

That’s right! Amazon offers short term loans to any small business that needs capital to continue expanding and sell more on its platform. 

To learn more about this service, let’s dive a bit deeper.

What is Amazon Lending? 

Amazon Lending is a service that helps out small businesses obtain loans. Since 2011, Amazon has provided loans, but in 2018, it joined forces with Bank of America to further its reach and assist more sellers. 

The loans Amazon offers are short term loans. And the goal of the program is to help out registered Amazon sellers by supplying them with financing so they can continue stocking up on inventory. For sellers this is a plus, they can continue to provide products to their costumers and operate to full capacity without missing a beat.

amazon lending: amazon

This is an invite-only service that a few Amazon sellers can receive. To be considered for this, there are a few requirements.

Amazon lets its registered sellers borrow loans starting from $1,000 and up to $750,000. This is great news if you are looking to expand and grow your business through Amazon.

Also, repayment plans are simple and easy. These payments will be fixed and will be deducted monthly from your Amazon account. This will be reflected as a percentage of any sales you make through the platform and will be taken out to pay for the loan over time. 

The best part is that if you need the loan right away, Amazon will disperse the funds quickly. You should be able to receive it by the next business day or so once your requirements have been reviewed.  

Amazon Lending is great for small businesses that are looking to grow but need capital to remain competitive in the Amazon marketplace. Whether you are selling shoes, t-shirts or books, Amazon can help you- if you qualify.

Who Can Apply For Amazon Lending?

To get a business loan from Amazon a few things must be cleared up. 

First, registered Amazon Sellers can be considered for this business loan. If you do not have a seller’s account with Amazon, you won’t qualify. 

Business Start up SME concept. Young startup entrepreneur small business owner working at home, packaging and delivery situation. concept: amazon lending

How to Become an Amazon Seller in 5 Easy Steps

Also, not all Amazon sellers will be considered for a business loan. This is an invite-only type of loan. This means that to get this loan, Amazon sellers with good customer metrics and increasing sales are eligible for a business loan. Even if you are a registered seller on the platform, you may not be offered one. 

Having these two requirements are a key factory for any registered seller looking to get a business loan through Amazon.

Amazon Lending: Everything You Need to Know

Now that we understand what is Amazon Lending and who can get one, let’s take a look at some other facts.

Being invited to get a business loan from Amazon means they consider you a key player in their platform and they want you to continue doing business within their marketplace. They see that you are working hard to provide customers with value. 

Another fact is your business must have at least $10,000 of total sales in the last year alone. This helps Amazon see that your track record is solid and they want to help you reach new heights. 

Having good customer metrics is a key indicator of Amazon’s decision for lending money. By having low order defect rates, how fast you respond to customers, your cancellations and policy violations show Amazon your commitment to a standard.  

Once you take out a loan you won’t have to pay any origination fees. Some lenders can or might require you to pay for the reviewing or processing of the loan, but not Amazon. Don’t worry they won’t be taking a look at your credit score, either. They only look into your sales history and the other customer metrics mentioned above earlier. 

Also, let’s talk about interest rates. Although there isn’t much information on this but word on the street is that they range from 6% to 16%. 

Over 50% of Amazon sellers who have had a loan, signed up for a second one. This may mean that they must have had a good experience the first time.

Finally, if you default on your Amazon business loan, you can expect Amazon to take possession of your inventory for the unpaid loan or even withhold payments from actual sales through your account until the loan is paid off.

Lafayette - Circa February 2018: Amazon Store at Purdue. A brick-and-mortar store customers can receive products from III. concept: amazon lending

Amazon Lending: Pros and Cons

So, is an Amazon loan what you need? If you are an Amazon seller and you need to invest in your business, maybe this option is what you were looking for, but you need to carefully analyze all its advantages and disadvantages.


  • Easy application process
  • Wide range loan amounts
  • Based on metrics and sales
  • Quick distribution of funds
  • Ability to get a second loan options


  • Only for select registered Amazon sellers
  • It’s an invite-only program
  • High cost and short repayment options
  • Limited information on Amazon or online

Is Amazon Lending Right for Your Business?

Most of the requirements mentioned are just based off on rumors online and testimonies of users that have been approved, as Amazon has not made public the requirements for this invite-only program. While they might be accurate, there’s no way for you to know, for sure, if you’re the perfect candidate for an Amazon Lending loan. 

If you need cash to grow your business but still haven’t received an invite to join the loan program, or if you’re not even an Amazon seller, you should know that there are still financing options for you out there.

Look no further than Camino Financial! We are better able to help you get a business loan right away. Within a few clicks, we can help you get qualified and assist you and your business. E-commerce is the future and we want to help you be a part of it. 

Get a quote with us today!

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