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.
14 replies
Seller_lljyzgTxr5fgI
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).
Seller_idCSjD35wINVo
Hi, how can we ensure there are sufficient funds in account to cover it? Can we pay money into it?
Seller_idCSjD35wINVo
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…
Seller_p52NneMRgU7Ot
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.
Seller_dotUZJUB3ccs1
You have 30 days from the due date to make the payment. You will not incur any additional interest.
Seller_zgIvS1wETI6Vp
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.
Seller_prNRYzgZJre6A
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.
