Amazon lending loan repayments


The first payment of our amazon lending loan is due today, 9th January, and i understand this will be deducted from our selling account on our next disbursement date, which is tomorrow, 10th January. If the amount in our seller account is not enough to cover the first repayment (it might just be enough or slightly short) then I understand the remaining balance of the first repayment will be taken from our next disbursement which will be 24th January.

Will we incur extra interest because the first payment was not sufficient by tomorrows disbursement? Or do we have 30 days after the payment is due to pay it before there is late interest charges?

If there is no further interest charges then we would be happy to wait until next disbursement. Otherwise we would be looking to make a bank transfer to cover the full amount.


I would strongly recommend that you ensure there are sufficient funds in the account to cover ALL of the first repayment as you will be charged. Also, it won’t look very good if your very first payment is short. Amazon will very quickly pull the plug, as they have done with many sellers. Here’s the bit of info you need:

If your disbursements are insufficient to cover your loan payment and you do not make a payment in any other permitted way, you will be charged a late interest rate on the portion of your loan which is overdue. The late interest rate is 2% plus your original interest rate (for example, if your interest rate is 5.9%, then your late interest rate is 7.9% on the portion overdue).


Hi, how can we ensure there are sufficient funds in account to cover it? Can we pay money into it?


Not as such because it’s not a transfer system like a bank or PayPal. The easiest way is obviously to sell more items and increase the balance. Otherwise the following applies:

Loan repayments are automatically deducted from your Seller Account at the time of your first disbursement following the relevant Bill Date. You have one month following the Bill Date to make the repayment. No late payment interest charges are charged as long as the full amount payable is paid within this time. If the funds available in your Seller Account at the time of your first disbursement following the Bill Date is less than the current Amount Payable, we will deduct the outstanding amount from your Seller Account at the time of your next disbursement.…and thus charge you interest !!

It may sound like an obvious statement but you should always ensure there are sufficient funds in your account on the due date. Many sellers (ourselves included) have been invited to Amazon Lending in the past. We have rigidly made payments bang on time, never incurred a charge, been offered another loan when the first one was paid off and then …slash. Nothing. No more offers, no more contact. That is what happens to sellers who pay on time, every time. Those that don’t are likely to be cut off even sooner.

The moral to the tale is Amazon Lending isn’t necessarily right for everybody.


This doesn’t make it sound such a good deal after all then. First, it was take this amount, by this date, or leave it. No negotiation allowed. We weren’t happy with the timing but finally took the loan on last day permitted, 9th December. Our problem was we had no Christmas stock and its usually a quiet period for us, we aim more towards higher sales Feb-June. The loan was coming at a bad time, too late to buy Christmas stock and ship it in for FBA. So we basically did nothing until after Christmas, now it is catching up with us.

Now we look like being a couple hundred short of required 4500. We would reach the target if it wasn’t for open invoices (about £300 worth) that we will have to wait on, and i assume they will not count as far as amazon are concerned.

There really should be a way to put funds into the account for the loan repayment. As i understand it, even if we make a bank transfer they still want to take the full amount due tomorrow from our disbursement. It seems like they are giving you a loan and then putting you in a straight jacket.

24 hour firesale coming up…:worried:


Your answer lies within here. The payment will only become overdue if you fail to pay it in full within the required timeframe, which, as I understand it, is one month from the bill date.

If you require clarification, you could ask the lending team, but I’m pretty sure that you’re good until the next disbursement.


Yes, as I said earlier, it’s not right for everybody. For the shortfall you mention, you’re not going to get hammered with the interest rate you have anyway. However, you also mention that you took the loan on the last possible day but had no stock and were in a quiet period. Hindsight is a wonderful thing and I think a lot of sellers who’ve accepted loans have found similar problems. It’s all a bit hit and miss because offers are made based on algorithms and metrics, not on logic.


Yes, we were in debate about whether to accept or not due to the timing of it, and final decision was made at last minute. If it had been available 9th october or 9th january we would have been fine with it and used it to better advantage, so far we haven’t even utilised the loan.


To be honest that is what I took it to mean that there was 30 days from bill date but then i got worried. I’ve been reading through it all again and i’m still not sure… I did send a email to the lending team, though i’m worried about that too, because of the french VAT requirement.

We had been told we needed a french VAT number as previous owner had stored stock in french FC, but there were some documents that we don’t have and don’t require such as companies house certificate. I told amazon we did not have this doc and did not require it as an unlimited partnership. The day after I contacted amazon about this, was also the day after we had the loan paid into our account, we were told we were blocked from sending any more shipments to FBA due to VAT irregularities. So it seems contacting seller support had a negative effect.

It was resolved the next day but if that is how amazon work it is scary. Hopefully contacting the lending team won’t result in another knee jerk reaction.


I don’t think you need to panic. We were offered a loan in 2018 which we took, we were also offered one in 2019 which we didn’t take up.

When we took the one in 2018, we were often in a situation similar to yours where we were a little short in the first disbursement when the repayment was due - it was not a problem because in the second disbursement (14 days after the first) there was more than enough to cover the additional small amount due within the 30 days period and the remaining balance was taken from this. So, if this is still the way the system works (and I haven’t seen anything that says any different) then you will be fine.

At the time of taking out the loan there were also details of how to pay into it via your bank account if you were short, so I’m not sure you actually need to panic-sell.


You have 30 days from the due date to make the payment. You will not incur any additional interest.


as said above.

It will deduct whatever you have available from the due amount and the rest will go on your next payment.
The due period is 30 days…

If you don’t clear the due amount within 30 days interest will be applied and amz can explore other routs to reclaim money.


Amazon take what you owe from your income balance and if there is not enough to cover the monthly repayment figure, they will go back in again, so don’t worry. We had a payment due on the 1st and our income balance shows as zero until they take the full monthly payment. Sometimes we pay it back sooner than other months, it really depends on sales.


Are you are running a store that was previously operated by a Limited Company, but you are a partnership? Did you not buy the limited company or just transferred stock and assets and transferred the account?

If you are operating as a partnership then your account registration information should be updated to reflect that and Amazon wouldn’t be asking for incorporation certificates. Are you still trading on Amazon as (previous company) Ltd.?


No, it was a sole trader, and a few of us worked part time for him, he decided to move on to bigger better things so we took over from him as a partnership. We had to apply to amazon to do this but it turned out to be fairly easy process in the end, well now that i think about it, there were quite a few bumps in the road, but we got past it, got verified, and are on the up, hopefully.

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