Need fast funding to grow your Amazon business? Here are five financing options tailored for sellers to handle inventory, marketing, and cash flow challenges:
- Amazon Lending: Exclusive, invitation-only loans up to $750,000 with fixed monthly payments. Funds arrive in 3–5 business days.
- Onramp Funds: Revenue-based financing with approvals in under 24 hours. Payments adjust to sales, offering flexibility during slow periods.
- Sales-Based Financing: Repay a percentage of sales instead of fixed amounts. Ideal for seasonal businesses needing quick funds.
- Cash Advances: Get funds the same day after approval, with repayments tied to daily sales.
- Credit Lines: Borrow as needed, up to your limit, and pay interest only on what you use. Perfect for ongoing operational needs.
Quick Comparison
| Option | Funding Speed | Repayment Structure | Eligibility Requirements | Common Uses |
|---|---|---|---|---|
| Amazon Lending | 3–5 business days | Fixed monthly payments | Strong performance metrics | Inventory, seasonal prep |
| Onramp Funds | Under 24 hours | Percentage of sales | $3,000+ monthly sales, U.S. entity | Flexible growth needs |
| Sales-Based Financing | 1–2 business days | Percentage of sales | Connected store data | Marketing, inventory |
| Cash Advances | Same day after approval | Daily/weekly payments | 6+ months selling history | Short-term cash needs |
| Credit Lines | Same-day access | Interest on used amount | Established business history | Ongoing operations |
Choose the option that fits your needs, whether it’s bulk inventory purchases, marketing campaigns, or managing daily operations. Plan ahead, assess your sales, and align funding with your growth goals.
How to Navigate Amazon Seller Financing: Understanding Your Financing Options in 2024
1. Amazon Lending
Amazon Lending is an exclusive, invitation-only program designed for established Amazon sellers. It offers loans ranging from $1,000 to $750,000 to help sellers expand their inventory and grow their businesses. Instead of relying on traditional credit checks, Amazon evaluates sellers based on their performance on the platform.
To qualify, sellers must meet specific criteria:
- Have been actively selling for at least 12 months with annual sales of $10,000 or more.
- Maintain a customer feedback rating of 4.5 stars or higher.
- Avoid policy violations in the past 6 months.
- Ensure no outstanding Amazon loans within the last 33 days.
Interest rates for these loans typically range from 6% to 16% APR, with an average of 10.9%–12.9%. For example, a $50,000 loan at 12% APR over six months would require monthly payments of $8,666.67.
Peeyush Nahar, Amazon's VP, shared the program's impact:
"The program has driven $4B in seller sales growth, with 50% of borrowers taking second loans."
Once invited through Seller Central, sellers can complete a digital application and receive funds within five business days. Repayments are automatically deducted from the seller's Amazon account, so managing cash flow is crucial to avoid account restrictions.
Amazon Lending has also expanded through partnerships, offering different options:
- Direct Amazon Loans: Up to $750,000 with terms of 3–12 months.
- Lendistry: Loans up to $250,000 with terms of up to 5 years.
- SellersFi: Credit lines up to $10,000,000 with flexible terms.
The program's growth highlights its importance. By Q2 2022, loan receivables reached $1.3 billion - double the levels seen before the pandemic. In January 2024, a collaboration with SellersFi allowed 34 Amazon sellers to access $4.7 million in credit lines.
While the program offers clear benefits, keep in mind the short repayment terms and the requirement to use funds for inventory purchases.
2. Onramp Funds
Onramp Funds provides fast, equity-free funding with approvals in just 24 hours, designed specifically for Amazon sellers who need quick access to capital for inventory or marketing.
To qualify, sellers must meet these basic requirements:
- At least $3,000 in average monthly sales
- A U.S.-based business entity (LLC, Single-Member LLC, C-Corp, or S-Corp)
- An active seller account on supported platforms
The straightforward process makes securing funding hassle-free. Onramp’s revenue-based repayment model adjusts with your sales, offering flexibility during slower periods. Sellers using the platform have reported a 60% increase in revenue within six months.
Here’s a snapshot of Onramp’s performance:
| Metric | Performance |
|---|---|
| Customer Revenue Growth | +60% (180 days post-funding) |
| Repeat Borrower Rate | 60% |
| Total eCommerce Loans | 3,000+ |
| Minimum Monthly Sales Required | $3,000 |
These numbers highlight how Onramp supports sellers in achieving measurable growth.
Sellers can use the funds for:
- Purchasing inventory
- Covering shipping and logistics costs
- Running marketing campaigns
- Managing operational expenses
With automated repayments and a dedicated support team based in Austin, Onramp Funds helps Amazon sellers make the most of their capital and grow their businesses faster.
3. Sales-Based Financing
Sales-based financing offers Amazon sellers a funding option where repayments adjust based on sales performance. This approach aligns with your business cycles, ensuring payment amounts fluctuate with your revenue.
The main advantage? Payments are tied to your cash flow. Instead of fixed monthly payments, you repay a percentage of your sales. During slower months, payments decrease; during busy periods, they increase.
Here’s a quick breakdown of how it works:
| Aspect | Details |
|---|---|
| Repayment Structure | Percentage of daily or weekly sales |
| Funding Speed | Available in as little as 24 hours |
| Usage Flexibility | Can be used for inventory, marketing, logistics |
| Minimum Requirements | $3,000+ in monthly sales |
| Credit Impact | Based on business performance, not personal credit |
Before diving into sales-based financing, consider these important factors:
- Sales History: Your past sales performance directly influences how much funding you can get.
- Cash Flow Patterns: Seasonal trends and overall business health play a role in setting terms.
- Current Debt: Existing financial obligations could impact your eligibility and the terms offered.
This type of funding can be used for initiatives like:
- Buying inventory in bulk to secure better pricing
- Expanding successful marketing campaigns
- Improving shipping and logistics operations
- Launching new product lines
With automated repayments, you can focus on growing your business without worrying about managing payment schedules. For Amazon sellers looking to scale, this flexible financing option can be a practical tool.
4. Cash Advances
Cash advances offer Amazon sellers quick access to funds based on their projected sales. Unlike traditional loans with fixed repayment schedules, cash advances adjust repayment amounts according to daily sales, making them a flexible option. This approach ensures sellers can access capital quickly while aligning repayments with their cash flow.
The process is straightforward. Approval focuses on your business performance rather than personal credit, making it a practical funding solution for many sellers.
Key Features of Cash Advances
| Feature | Benefit |
|---|---|
| Fast Access | Funds available the same day after approval |
| Eligibility Criteria | Based on business performance, not personal credit |
| Repayment Method | Automatically adjusts with daily sales |
| Usage | No restrictions on how funds are used |
| Extras | Includes tools for real-time performance tracking |
Adam B. from The Full Spectrum Company shared his experience:
"Onramp's process is very straightforward and easy to navigate. I had funds in my account within a day of final approval."
Practical Uses for Cash Advances
Sellers often use cash advances to:
- Purchase inventory in bulk
- Expand marketing campaigns that are already performing well
- Improve shipping and logistics
- Launch new product lines
According to data, businesses that use cash advances often see a 60% increase in revenue within 180 days of receiving funds. To get the most out of a cash advance, consider timing it around seasonal demand spikes or major growth opportunities. Automated repayments ensure cash flow remains manageable while you focus on scaling your business.
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5. Credit Lines
Credit lines are a flexible funding option for Amazon sellers, offering ongoing access to funds without the need for repeated applications. Sellers can borrow up to their approved limit and only pay interest on the amount they use.
How Credit Lines Benefit Amazon Sellers
Credit lines are especially useful for managing inventory, marketing, logistics, and expansion. Sellers can make multiple withdrawals as needed, providing the financial flexibility to respond to growth opportunities and operational demands.
What Lenders Look For
When evaluating your eligibility for a credit line, lenders focus on several factors:
| Factor | What Lenders Review |
|---|---|
| Sales History | Recent performance and growth trends |
| Cash Flow | Stability of monthly revenue |
| Debt | Current financial obligations |
| Business Structure | Verified business status |
| Platform Activity | Marketplace performance and metrics |
Tips for Using Credit Lines Wisely
- Time withdrawals strategically: Align them with your sales cycles to ensure funds are used efficiently.
- Keep utilization moderate: Avoid maxing out your credit line to maintain financial health.
- Focus on growth: Use funds for initiatives that directly enhance your sales and operations.
Key Points to Remember
By connecting your store data, you can pre-qualify and determine your credit limit. Credit lines are most effective when used for activities that directly contribute to increasing your Amazon sales.
Loan Options at a Glance
Amazon sellers often face challenges as they grow, making it essential to find funding options that fit their specific needs. Here's a quick comparison of financing solutions to help you decide what works best for your business:
| Feature | Funding Speed | Payment Structure | Requirements | Common Uses |
|---|---|---|---|---|
| Amazon Lending | 3–5 business days | Fixed monthly payments | Active seller account, strong performance metrics | Inventory, seasonal prep |
| Revenue-Based Financing (Onramp Funds) | Under 24 hours | Percentage of sales | At least $3,000 in monthly sales, verified business entity | Flexible growth needs |
| Sales-Based Financing | 1–2 business days | Syncs with sales deposits | Connected store data | Marketing, inventory |
| Cash Advances | 2–3 business days | Fixed daily/weekly payments | 6+ months selling history | Short-term cash needs |
| Credit Lines | Same-day access once approved | Interest only on used amount | Established business history | Ongoing operations |
Speed and Accessibility
Quick access to funds can make a big difference when opportunities arise. For instance, sellers have secured funding in under 24 hours, allowing them to act fast on market trends or time-sensitive needs.
Payment Flexibility
The right payment structure can ease cash flow concerns. Revenue-based financing adjusts payments to match your sales, offering flexibility during slower periods.
Business Impact
Simplified financing processes let sellers focus on scaling their businesses instead of juggling complex payment schedules. Automated repayment options also streamline cash flow management, reducing the hassle of manual tracking.
Usage Flexibility
These funding solutions cater to a wide range of needs, from stocking up on inventory to launching marketing campaigns. Their adaptability makes them a practical choice for Amazon sellers looking to grow efficiently.
Key Considerations
When choosing a funding option, think about:
- How quickly you need the funds
- Your cash flow and the payment structure that suits it
- Eligibility requirements and any restrictions
- Overall financing costs and terms
- How well the option supports your business growth plans on Amazon
What to Check Before Getting a Loan
Before you apply for a loan, it's important to review a few key factors to ensure you're making the right decision for your business.
Business Performance Metrics
Take a close look at your sales and cash flow to understand your financial position. Pay attention to:
- Monthly Sales Volume: Make sure your sales meet the minimum requirements of the platform you're using.
- Seasonal Trends: Be aware of your busy and slow periods.
- Current Debt Load: Assess your existing financial commitments to ensure you can handle additional payments.
Documentation Requirements
You'll need to gather specific documents before applying. These typically include:
- Proof that your business is legally registered in the United States.
- Data from your connected store on platforms like Amazon, Shopify, or Walmart Marketplace.
- Records of your sales history and other business performance metrics.
Once your paperwork is ready, think about how the loan’s repayment terms and funding options align with your business goals.
Payment Structure Impact
The repayment structure of a loan can significantly affect your cash flow. Consider:
- Payment Timing: Does the repayment schedule align with your cash flow?
- Cash Flow Management: Are payments manageable based on your revenue patterns?
- Flexibility Options: Are there adjustments available for slower sales periods?
Fund Utilization Plan
Have a clear plan for how you'll use the loan. For example:
| Investment Area | Expected Impact | Priority Level |
|---|---|---|
| Inventory Expansion | More products available | High |
| Shipping & Logistics | Faster delivery times | Medium |
| Marketing Campaigns | Greater brand visibility | Medium-High |
| Operational Costs | Smoother business processes | - |
Risk Assessment
Finally, assess the risks involved to ensure the loan supports your business's growth without overextending your finances:
- Check that the loan aligns with realistic growth expectations and that the return on investment (ROI) outweighs the costs.
- Understand all terms, including fees and repayment obligations, before signing.
"Payments with Onramp Funds sync with sales, so sellers don't have to worry about their ability to repay during a slower month"
This strategy can help you secure funding that fits your business needs while supporting steady growth.
Summary
Finding the right funding for your Amazon business means aligning your growth objectives with your cash flow requirements. Revenue-based financing has become a popular option because it ties repayments to your sales, offering more flexibility during slower periods.
Here’s a quick comparison of key funding aspects and their effects:
| Funding Aspect | Key Benefit | Real Impact |
|---|---|---|
| Speed of Access | Same-day funding availability | Funds delivered within 24 hours of approval |
| Payment Structure | Repayments adjust with revenue | Payments automatically align with sales |
| Use of Funds | Focused on growth investments | Supports inventory, marketing, and logistics |
| Support Level | Personalized assistance | Direct help with fund allocation |
"Applied, got our offer, and had cash in our bank account within 24 hours. Their Austin, TX based team was very professional and helped me deploy the cash to effectively grow our business." – Nick James, CEO of Rockless Table
Steps to secure growth funding:
- Assess your sales performance metrics.
- Gather the necessary documentation.
- Create a plan for how you’ll use the funds strategically.
- Choose repayment terms that align with your sales cycles.
"Onramp offered the perfect solution with revenue-based financing to secure the capital we needed to invest in inventory and pay it back at a reasonable time frame once we made sales. The process was quick, easy, and the support was great." – Jeremy, Founder and Owner of Kindfolk Yoga
The right funding solution should fuel your growth without limiting your operational flexibility. By aligning your funding choice with your business strategy and partnering with a reliable financing provider, you can secure the resources needed to scale your Amazon business effectively.
FAQs
What are the main differences between Amazon Lending and financing options like Onramp Funds for Amazon sellers?
Amazon Lending and Onramp Funds both provide financing solutions for Amazon sellers, but they differ in key ways. Amazon Lending typically offers short-term loans with fixed repayment schedules, which may require sellers to meet specific eligibility criteria based on their sales history and account performance.
On the other hand, Onramp Funds provides flexible, revenue-based financing tailored for eCommerce businesses. Repayments are made as a percentage of your sales, which can help sellers manage cash flow more effectively, especially during fluctuating sales periods. Additionally, Onramp Funds supports not only Amazon but also other major eCommerce platforms, making it a versatile option for sellers looking to scale their operations across multiple channels.
How can Amazon sellers choose the right financing option to support their business growth?
To choose the right financing option, Amazon sellers should evaluate their specific business goals, such as scaling operations, managing cash flow, or investing in inventory and marketing. It's important to consider factors like repayment flexibility, speed of funding, and whether the financing aligns with your sales performance.
Onramp Funds provides tailored funding solutions designed for eCommerce businesses, offering fast, equity-free financing and flexible repayment options based on your sales. This allows sellers to focus on growth without the burden of rigid loan terms.
What should Amazon sellers consider when choosing a financing option to support their business growth?
When evaluating financing options, Amazon sellers should carefully assess how the terms fit their business goals and cash flow needs. Key factors to consider include the repayment structure, total cost of financing, and how flexible the terms are to accommodate fluctuations in sales.
For example, revenue-based financing can be a smart choice for eCommerce businesses, as repayments are tied to a percentage of sales. This ensures payments adjust with your revenue, helping you manage cash flow more effectively while investing in growth areas like inventory or marketing.
