Amazon Providing Short-Term Loans To Merchants Through Lending Program
Amazon has launched a new service that gives merchants short-term loans to sell their products on Amazon.com. Amazon sent detailed letters to merchants about the short-term loan program. The new service is called Amazon Lending.
Amazon Lending’s loans can be used to “purchase inventory and increase your sales on Amazon.com.” If a merchant is approved, the funds will be placed in their Amazon Seller account within five days. They will have to pay a monthly fee.
Amazon collects around 99 cents per sale plus a percentage of each transaction if a merchant is selling less than 40 items or $40 per month plus a revenue share if they are selling more than that. Several merchants were given an interest rate of 13%. This type of program competes against Kabbage.