Amazon Loans 'Invitation'
I used to get offered an Amazon Loan on a regular basis which helped my business in difficult times but now despite the last one being paid off on the dot back in June, I am completely ignored after 4 months and not contacted regarding starting another one despite my account being in good standing. It has impacted our business pretty badly. Rather than waiting and waiting for Amazon to maybe offer a loan on ‘invitation’ which doesn’t happen now, it would be a better system to be able to apply and then if you were turned down at least you would know where you stood instead of this feeling of will they or wont they ever offer another loan.
26 replies
Seller_hC0hNVDuILaKO
There are many institutions out there who would probably be delighted to accept a loan application from you, and who would offer better terms than your Amazon loan.
Seller_n33KwLeg9XOvi
My most recent Amazon Loan (£53k / 12months) was paid off in July. It was my 12th loan in total. Nothing new has been offered since.
If you sell on eBay - try the eBay loan (PayPal Working Capital?)
In my opinion - going forwards - I think Amazon could be reluctant to offer any new loans - especially with the EU VAT issues currently ongoing. Perhaps they are winding that side of their business down?
Anyone else been offered a new loan invitation recently?
Seller_Rkf2znCXtSZpI
How much do Amazon typically charge, arrangement fee & interest rate? How long is the term?
Seller_sFEUMUfeW5484
I noticed they launched a new lending page, so looks like they haven’t stopped it. We had a few, no problems but just stopped about a year ago.
Seller_xsrgXB9SyT6WI
Similar story here - I’ve had around 6 loans in total (mostly though just re-financed rather than outright new loan). Nothing since last paid off in August.
Having said that, in that time my monthly sales amount didn’t really increase greatly, so I wonder if that’s the metric they use - if you are getting a loan, and your business grows x% then it’s obviously better for Amazon.
As for Paypal vs Amazon I find the interest rates roughly similar if you work out the annual rate - around 14-16%. All in all, I prefer the Amazon one though as I know there is no early repayment charge and you can pay off quickly with no penalty. As the fee on Paypal is payable upfront no matter what, there isn’t much of an incentive to pay off early (unless you want to get another quickly!).
Seller_TH9DATW06Doc2
Cashflow is becoming an issue here. When you first start it doesn’t seem much but as your sales increase so does the reserve. Also, they only disburse every 2 weeks after the reserve so really they’re holding more than the reserve. Add the fact that you are paying for postage up front without getting it paid back for 3-4 weeks… it begins to add up as you scale up.
I did encounter a company called payability which also do loans because they can see your sales. They have really good reviews. Alas, they only operate with amazon US accounts. I think they determine your eligbility and loan, cash advanced amounts based on the US marketplace. They do infact cover the UK too but on condition that you are selling in the US too. Hopefully they will expand for solely UK sellers. It’s exactly what I need because my sales are increasing. Cashflow!
Seller_KKcTTZzy6Jd6Q
We’re in the same boat, had several loans before, had no issues but not been offered one since August 2018.
