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Best Amazon Seller Loans of 2022

Becky Hanson

Amazon seller loans can provide you with the funds to grow your online business, restock your inventory, market your brand, or cover the daily expenses needed to maintain your business. We’ve evaluated the best Amazon seller loans based on loan terms, fees, rates, customer satisfaction, and overall quality.

Quick approvals with fast funding process

$6,000,000

Max. Loan Amount

12+ months

Time In Business

$10,000+

Monthly Revenue

650

Min. Credit Score

Overview

Biz2Credit provides a fast application process that can take less than 4 minutes and provide funding within 72 hours.

What we like

  • Fast funding process
  • Funding advisors available
  • Various repayment options
  • Large funding amount

What we don't

  • Origination fee
  • Maximum term of 36 months
  • Business assets required

No prepayment and origination fees

$250,000

Max. Loan Amount

12+ months

Time In Business

$3,000+

Monthly Revenue

640

Min. Credit Score

Overview

If you require cash quickly due to a cash flow shortfall or have a less than perfect credit score, Kabbage could be a promising option.

What we like

  • Borrowers with fair credit can apply
  • No prepayment penalties
  • Streamlined application journey
  • No origination fees

What we don't

  • Late payment fees are applicable
  • Short repayment terms
  • Business assets required

Business loans tailored to your needs

$500,000

Max. Loan Amount

6+ months

Time In Business

$10,000+

Monthly Revenue

600

Min. Credit Score

Overview

National Funding offers small businesses working capital and equipment financing loans that are suitable for a broad range of businesses, and you could receive approval and funding within 24 hours.

What we like

  • Early payoff discounts
  • Fast approval and funding
  • High approval rates for loan applications
  • Personalized experience

What we don't

  • Daily or weekly repayment
  • High minimum annual revenue

Considers applicants with bad credit profiles

$500,000

Max. Loan Amount

6+ months

Time In Business

$8,000+

Monthly Revenue

500

Min. Credit Score

Overview

Uplyft Capital provides fast funding turnarounds and a straightforward online application process.

What we like

  • Bad credit businesses are eligible
  • Fast funding turnaround
  • Transparent factor rates
  • Simple online application process
  • Range of funding options

What we don't

  • High factor rate
  • Daily or weekly repayment
  • Low revenue businesses do not qualify

What is an Amazon seller loan?

Amazon seller loans are specifically designed to help you grow your online business. These loans are typically issued by a direct lender, and you can buy more inventory, hire more employees, or expand your business in any way you choose.

Unlike other business loans, the Amazon seller loan is only available to individuals who sell on Amazon. It’s also important to note that these loans are not intended for large-scale manufacturers or wholesalers who sell through Amazon’s third-party marketplace. Instead, these loans are designed for small businesses that use FBA (fulfillment by Amazon) or FBM (fulfillment by merchant).

What are the requirements for Amazon seller loans?

To be eligible for this loan, most lenders look at the following requirements:

  • Time in business: You’ll need to be an Amazon seller for at least 6 months before applying for an Amazon seller loan.
  • Revenue: You should have sold at least $10,000 worth of products through your business in the last 12 months.
  • Customer satisfaction: Amazon sellers with a high customer satisfaction metric have taken advantage of these loans more easily than other sellers. The higher your customer satisfaction, the better your chances are of getting approved for an Amazon seller loan.
  • Copyright or trademark complaints: Sellers must not have any outstanding copyright or trademark violation complaints against them.
  • Compliance with Amazon listing guidelines: The products that you sell must be compliant with all Amazon listing guidelines. You must also comply with all other rules and regulations the company sets. If your product is not per these guidelines, then your loan application will more likely be rejected by lenders.

What are the types of Amazon seller loans?

There are several financing options for Amazon sellers. Here are some of the types of loans:

  • Business line of credit: This option allows you to draw on funds on an as-needed basis. It also comes with competitive rates and flexible payment options.
  • Merchant cash advances: A merchant cash advance is a short-term loan that provides working capital for businesses with poor credit or no credit history. The loan is based on future sales.
  • Peer-to-peer financing (P2P): Peer-to-peer lending platform connects individuals who want to borrow money with those who have money to lend — with lower fees than traditional banks and other financial institutions. P2P lending platforms are often more competitive regarding interest rates and fees than traditional lenders because they don’t have the same overhead costs as brick-and-mortar institutions.
  • Invoice factoring: This allows Amazon sellers to sell their accounts receivable to the factoring company, usually at a discount, and receive funds in advance. With factoring, sellers don’t have to wait for their customers to pay them for their products.

What are the benefits of getting an Amazon seller loan?

Here are some benefits of getting an Amazon seller loan:

  • Flexibility: Amazon seller loans can be used for any purpose related to selling on Amazon FBA (fulfilled by Amazon). You can use it to buy more inventory, expand your product lines or increase marketing efforts to help boost the sales volume of your business.
  • Simple application: The process for applying for an Amazon seller loan is simple. You can apply online or by phone, and no need for faxes or paperwork.
  • Build credit history: If you don’t have much credit history or have had trouble with past payment obligations, getting a small business loan may help build your credit, so other lenders will want to lend to you in the future.
  • Tax benefits: You can earn tax benefits from your state and federal governments. The amount of tax deduction depends on how much money is spent on interest, equipment, labor costs, and other expenses related to running your business.

How can you use Amazon seller loans to grow your business?

Here are some of the most common ways Amazon sellers use them:

  • Purchase inventory: If you have a product selling well on Amazon, you may consider purchasing more inventory to meet the demand. This can be a great way to grow your business.
  • Launch new products: If you are just starting and have no inventory or sales yet, you may want to consider using a loan to launch a new product or category.
  • Marketing: You can look into Amazon pay per click and a loan can help pay for those expenses. However, make sure you’re getting an ROI on your advertising.

How to choose the best Amazon seller loans

Here are some factors to consider to choose a Amazon seller loan:

  • Turnaround time: The first step is figuring out how much money you need and when it’s due. Then consider what type of financing will work best for your business needs. Think about how long it would take for the money to reach your account once the lender has approved your application.
  • Repayment plan: The repayment plan for your loan is very important because it dictates how much you will have to pay each month and how long it will take to pay off the entire loan amount. The repayment plan options vary with each lender and may include fixed payments over a set amount of time or adjustable payments based on your earnings. 
  • Application process: The application process should be easy and convenient. Many providers use an online application form that’s simple to fill out.
  • Interest rates and fees: The most crucial factor to look at is interest rates and fees. Check the APR (annual percentage rate), which includes all interest charges for late payments or other penalties. If you have bad credit, you may not be able to qualify for loans with lower rates, but if you have good credit, some providers offer very low APR rates.
  • Compare offers: One of the biggest mistakes people make when applying for a loan is accepting the first offer they receive. This is because there are many different loans available, so you must shop around and compare rates before making a final decision on who you want to work with.