Are you interested in a Amazon FBA Seller Business Loans, if so lets look at what finance options might be available for your UK Fulfilled by Amazon eCommerce business.
There are a number of finance providers for Amazon sellers in the UK, USA and Canada.
Disclaimer: We are not affiliated with Amazon, This page may contain affiliate links.
Amazon Seller Loans UK
Selling products via Amazon can be a great way to build a profitable business and get your products on the worlds biggest online marketplace.
However keeping all your SKU’s stocked and adding new ones, can require a lot of capital to buy stock.
That’s why you might want to consider taking out a business loan to grow the business and buy more stock.
Amazon Loan Options For FBA Sellers
Depending on how long you have been selling on Amazon FBA, turnover and other factors, will dictate which business loan and finance options are available for your company.
Things like costs of borrowing and how much you can lend, will vary between the different options and lenders.
Here are some of the potential loan options that may be open to you as an Amazon seller.
Working Capital For Amazon Sellers
There are some specialist funders that provide working capital specifically for Amazon sellers in UK, USA and Canada.
Typically to apply you need to have at least 6 months trading history and sales per month of at least $10,000.
- Credit limit up to 5 Million
- Flexible withdrawals available
- Interest-only option up to 4 MONTHS
- Terms Up To 24m
One way of getting extra funds for your Amazon business is by getting next day access to your previous days sales.
You can potentially get 90% of your previous days sales paid daily into your business account using a “Daily Advance”.
This frees up cashflow and avoids you having to wait up to 14 days to get paid.
- Up to 90% advance rate
- Fast Approval
- Available in USD, CAD, GBP, EUR
- US, Canadian and UK companies
Unsecured Business Loan For Amazon FBA Sellers
If your Amazon seller business has been operating for over 2 years, then you may be able to look at an unsecured business loan.
With this option the directors usually need to have reasonable personal credit score and ideally at least one a home owner.
Typical Amazon Loan Features:
- Terms 1 – 6 Years
- Fixed Monthly Repayment
- Rates: 5%+ P.A.
- Amounts from £5000 to £5 million
Unsecured business loans are suitable for established businesses selling on Amazon marketplace. Ideally profitable, your business will need to demonstrate affordability of the monthly payments and a strong balance sheet.
A director Personal Guarantee may be required.
Secured Amazon Seller Business Loan
If you can provide a tangible asset as security such as property, then you may be able to use this to secure a business loan.
Provided the property has sufficient equity, you may not require any minimum trading period for your Amazon store. This could be your main residence, a buy to let or investment property or commercial property with sufficient equity.
Note: Your property may be at risk if you fail to make the required business loan repayments.
Amazon FBA Merchant Cash Advance
With as little as 4 months trading, you may be eligible to apply for merchant cash advance funding for your Amazon FBA seller business.
You can potentially borrow up to 200% of your average monthly sales figures and with higher acceptance rates that unsecured business loans.
- No fixed payments
- Repay percentage of future Amazon payments (10-20%)
- Bad credit considered
- Home owner not required
Amazon Factoring & Invoice Finance
You may be able to release up to 90% of any unpaid funds owed to you by Amazon, using invoice finance. This option can work for both Amazon FBA sellers and also for Amazon Vendors.
An invoice finance facility can be put in place even if you are a new start up or have a low credit score.
Even if 100% of your debtor book is Amazon, you could still set up an invoice finance facility.
Amazon Vendor Business Finance Options
If you are selling products wholesale directly to Amazon via their vendor program, there are various finance options open to you.
Especially given that for any goods delivered to Amazon, you may not get paid for 30-90 days. This can be difficult on cashflow and restrict your businesses growth.
Similar to the FBA finance options above, Amazon vendors can apply for:
- Unsecured Business Loans
- Secured Business Loans
- Invoice Factoring & Invoice Discounting
FAQ: Amazon Seller Loans Frequently Asked Questions
Here are some common questions we get asked about Amazon Seller Business Loans.
What is an Amazon Seller Loan?
If you are selling products on Amazon (such as FBA), then your business could potentially apply for a Business Loan. An Amazon seller business loan could be used for things like buying more stock, launching new product ranges and SQU’s or for general business cash flow.
The amount you could borrow will depend on your current turnover, this could be from a few thousand pounds upwards.
What Alternatives Are There To Amazon Lending?
If you are not eligible for Amazon Lending or already have it, then there are other funding options available. We work with a large number of UK lenders that offer alternative business finance options to Amazon FBA sellers.
Can I get business funding as an Amazon Vendor?
If you are selling products whole via Amazon Vendor, then you could look at a Business Loan or Invoice Finance. A business loan will give you a one off lump sum, repayable over 1-6 years and usually requires over 1 year trading. An invoice finance facility will give you access to up to 90% of your outstanding Amazon vendor invoices on an ongoing basis, no minimum trading required.
Can Amazon Vendors use Invoice Factoring?
Yes there are lenders that will offer an invoice factoring facility for Amazon Vendor invoices. If Amazon represents more than 50% of your debtor book, then there are only a small number of lenders that may assist. Typically you can release up to maximum 90% of outstanding invoices but it could be lower depending on your agreed terms of payment with Amazon.
Summary Business Loans For Amazon FBA Sellers
In summary there may be more than one lending option available to your Amazon Seller eCommerce business.
A business loan or working capital facility may be available if you have good credit and have at least 1 years financial accounts. This options is best if you want a fixed monthly payment, spread over 1-5 years.
A cash advance or daily advance may be available with just 4 months trading and have high acceptance rates.
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