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Payability vs. Amazon Lending and Other Options

Do you want to invest in your Amazon business but lack the necessary funds? It may be time to think about funding. If you've studi...

Amazon Lending

Do you want to invest in your Amazon business but lack the necessary funds?

It may be time to think about funding.

If you've studied the subject at all, you are aware that entrepreneurs such as yourself have an abundance of financing choices. You're faced with an overwhelming amount of options, ranging from credit cards to eCommerce-designed solutions to invite-only programs.


Thankfully, we have already done the legwork for you, allowing you to quickly and simply compare the best financing choices available to eCommerce sellers (such as Payability, Amazon Lending, etc.) and invest with greater assurance in your next big opportunity, whether it involves hiring staff, marketing, inventory, or a new product. 


Let’s get started:


Amazon Lending

Invitation-only Amazon Lending offers short-term loans up to $750,000 to elite Amazon sellers. If you are approved, you will receive a loan offer from Amazon through Seller Central, email, or both. However, the loan offer does not guarantee a loan, so you will still need to apply.


The usage of an Amazon Lending loan is subject to some limitations; further information is provided in the breakdown below.


Amazon recently revealed that it has partnered with Marcus by Goldman Sachs to provide US-based Amazon sellers with access to the Marcus Business Line of Credit. Similar to Amazon Lending loans, this fixed-interest line of credit service is invite-only.


Here's additional information on how it all functions:


·       Terms of the loan: $1,000 to $750,000; maximum payment period of 12 months

·       Application: The application procedure is straightforward. You need to fill out an online application that could ask for details such as A-Z guarantee claims, proof of sales, etc. Only if you receive a loan offer from Amazon may you apply.

·       Turnaround time: After completing your application, you should receive a decision and financing in five business days. You will probably have to wait longer if you need to supply more information.

·       Eligibility: Amazon does not disclose its minimal requirements for loans. However, generally speaking, you should have a minimum of a 12-month selling experience, a high number of sales, and consistently great customer metrics.

·       Limitations: Upon its debut in 2011, Amazon Lending's loans were exclusively intended for inventory purchases for Amazon sales. Now, money can be used by sellers to finance the purchase of new goods or advertising.

·       Interest: Rates vary from 3% to 16.9% APR, per the Amazon seller forums.

·       Payments: After your due date, your payments are automatically subtracted from the Amazon payout. The outstanding loan sum will be subtracted from the subsequent payout if there is insufficient money in the payout to fulfill the payment.

·       Not with origination fees.

·       There is no prepayment penalty.

·       Advantages of Early Repayment: Interest will be charged to you until the loan is repaid. You will only be charged interest prorated for early repayment.

·       Credit Check: Not at all.

·       No option for an accelerated daily payout.

·       Options for Multichannel Funding: None.

·       Customer Service Department: Not at all. Receiving an offer, applying, and making repayments are all fully automated.

·       Why utilize Amazon Lending: The Marcus Business Line of Credit and/or Amazon Lending may be a good fit for your company if you're a top-tier seller who exclusively sells on Amazon and have a track record of success. If you are eligible, that is. Keep an eye out for an offer in Seller Central.


Payability Quick Ahead

Payability provides a range of financing options made especially for eCommerce companies and marketplace vendors. Instant Advance is one such solution that offers sellers operating on Amazon and numerous other eCommerce channels up to $250,000.


Payability bases their judgments on the health of your account, the sales performance of your Amazon data, and/or the profitability of your complete eCommerce portfolio. There will never be a single credit check or compound interest charged. Instead, they charge a flat price. Additionally, you could receive money in as little as a day. Let we dissect this:

·       Maximum Funding Amount: $250,000. Generally, you would receive between 75% and 150% of the entire sales proceeds for a given month. Additionally, they might start at $1,000.

·       Application: A 10-minute web-based questionnaire. After providing some basic information, link your Amazon account with any other e-commerce platforms you use for sales. Payability will consider all aspects of your eCommerce business when determining whether to fund you, as they are aware that sellers frequently vary their offerings.

·       Time to decision: You can receive funding and a decision in as little as 24 hours.

·       Eligibility: A minimum of $10,000 in monthly sales and nine months of Amazon selling experience are needed to qualify for Instant Advance.

·       There are no limitations.

·       Interest: Since Instant Advance is a purchase of your future sales rather than a loan, there is no interest. Alternatively, there is a weekly fixed flat cost that starts at 0.50%.

·       Payments: Until the entire amount is paid, a predetermined portion of your sales will be sent to Payability each time Amazon makes a payment.

·       Not with origination fees.

·       There is no prepayment penalty.

·       Benefits of Early Repayment: Yes. For each week the advance is received ahead of schedule, you will receive a charge refund.

·       Credit Verification: Not

·       Payability offers an expedited daily payout option called Instant Access, which allows for next-day payouts. Three months of sales experience and $2,000 in monthly sales on average are the minimum requirements.

·       Yes, there are multichannel funding options. Payability provides services to merchants on a variety of online marketplaces, including eBay, Tophatter, Walmart, Newegg, and Payability will be able to see a complete picture of your selling performance and history if you link all of your channels.

·       Team Customer Support: Indeed. You can talk to a real person about your account and offer. Payability representatives are accessible Monday through Friday from 9 a.m. to 6 p.m. EST and are headquartered solely in the United States.

·       The rationale behind Payability: Payability can assist you in growing your business, regardless of whether you solely sell on Amazon or have a diverse range of eCommerce products to offer. Payability would be a perfect choice if you're searching for quick, adaptable solutions that are tailored to your particular requirements as an online seller and you want to speak with a committed support team along the route. Apply online at directly.


How to Combine Amazon Lending & Payability

Be aware that the loan amount is fixed if you receive an Amazon Lending offer on your account. You can always add an Instant Advance or Instant Access from Payability to your Amazon Lending loan if you will need more than they can provide, or you can check to see if Payability can provide you with the entire amount you truly require.


Remember that you can utilize Payability's solutions in conjunction with other financing choices, such as Shopify Capital, Amazon Lending, or other financing options, or separately from them, depending on the specific needs of your company. You are welcome to speak with Payability's support staff about any additional queries you may have.


Alternatives to Financing

Take into consideration these additional choices if you're seeking for other strategies to increase cash flow and invest in growth opportunities:


·       Square Capital is an exclusive lending program available to companies who meet the minimal lending requirements and utilize Square for payment processing. The criteria depends on the health of your account, even though it is not publicly known. Square will instantly send you an offer if you qualify. Funding can be obtained through an easy online application process in as little as 24 hours. Repayments are automatically deducted as you sell, at a predetermined proportion of each day's revenue.

·       Stripe Capital: For sellers that utilize Stripe for payment processing, this lending program functions precisely like Square's.

·       Fundbox: Revolving line of credit and net terms are two of the financing alternatives that Fundbox provides to you and your clients. A company bank account, three months of invoice history, a minimum yearly income of $50,000, and a minimum credit score of 500 are required for eligibility because they pull credit.

·       Credit Cards: Credit cards may be used for specific investments, depending on your credit limit. Recall that if you are unable to pay off your balance in full and on schedule, interest charges will accrue rapidly.


Selecting the best funding option for your online store

For eCommerce sellers, funding choices appear limitless. How can you choose which option is best for you? The breadth of your portfolio (i.e., the several channels you sell on), the amount of money you need, the investments you make when the money is needed, and your present cash flow situation will all help you limit down your possibilities. Remember to account for any current financing offers you may have from companies like Amazon, Square, Stripe, etc.


You will be able to determine which solution will have the greatest influence on your business after you have evaluated these factors. Are you interested in learning how other eCommerce vendors increase cash flow and invest in expansion with greater assurance? Thousands of businesses are outpacing their rivals in growth by utilizing Instant Advance and Instant Access.

Read More:

How to Receive Approval to Sell Amazon-Restricted Categories

The Ultimate Guide to Starting Your Own Podcast

How To Increase your E-commerce Conversion Rate

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