What is Amazon Lending in 2024 and Why Every Seller Should Care

ByCharles Scott Last Update on

As an ecommerce expert who has consulted numerous Amazon sellers, I often get asked: "What is Amazon Lending and how can it help my business?"

In short, Amazon Lending provides fast and accessible loans to eligible sellers on Amazon Marketplace to enable growth. But what makes this program so valuable for sellers in 2024? Read on for a comprehensive overview of everything you need to know about unlocking capital through Amazon Lending.

[Estimated reading time: 8 minutes]

A Closer Look at The Amazon Loans Program

First launched in 2011, Amazon Lending saw rapid growth of over 50% year-over-year from 2020 to 2021 according to Amazon. More than 25,000 sellers have benefited from over $1.5 billion in loans so far.

To expand access to even more sellers, Amazon announced a new partnership with Lendistry for 2024 and beyond:

"Together with Lendistry, we look forward to providing economic opportunities to those entrepreneurs who have traditionally faced barriers to accessing affordable financial solutions," said Nicholas Denissen, Amazon VP.

So what types of loans and benefits does this program offer?

I‘ve summarized the key details in this table for easy reference:

**Loan Amounts**$10,000 to $100,000
**APR Range**8% to 9.9%
**Term Lengths**Up to 2 years
**Decision Time**As fast as 5 days
**Target Audience**Underserved communities

As you can see, in addition to sizable loans at competitive rates, a key advantage is how quickly sellers can access capital compared to traditional lenders.

Now let‘s explore specifics on eligibility, the application process, and why Amazon Lending should matter to your business.

Checking Your Eligibility as an Amazon Seller

Since Amazon Lending aims to assist sellers from underserved groups, there are a few prerequisites to qualify:

✅ Sell on Amazon for 1+ years

✅ Have a Professional Selling Plan account

✅ Maintain account in good standing

✅ Meet other criteria set by Lendistry

Priority is given to women-owned, minority-owned, and low-income businesses who tend to lack access to affordable credit for securing financing.

*Sources: 2023 Amazon Lending Updates; Lendistry Eligibility Criteria

So if you meet these prerequisites, you may see a message in Seller Central inviting you to apply once eligible.

Stepping Through the Straightforward Application Process

One of the most seller-friendly aspects of Amazon Lending is the simple loan application process:

👉 Login to your Seller Central account

👉 Select loan amount and term

👉 Complete online application

👉 Lendistry reviews within 5 days

Once approved, the loan is deposited directly into your bank account typically within 2 weeks. There are no hidden fees or charges either.

Why Amazon Lending Should Matter to Your Business in 2024

As an expert consultant for Amazon businesses, I always highlight Amazon Lending as a top resource for enabling growth available to sellers.

Here are 5 key reasons why:

  1. Access up to $100K without stringent qualifications of traditional lenders

  2. Grow inventory/operations to meet demand and production goals

  3. Quick time to funding approval beats alternatives

  4. Competitive rates as low as 8% APR without hidden costs

  5. Simple application process with great customer service

For any seller looking to scale up on Marketplace, the working capital and flexible repayment terms from Amazon Lending can be invaluable.

And with the new 2023 partnership expanding access, there has never been a better time to explore this financing option.

Whether you need to bulk up inventory, develop new product lines, upgrade manufacturing capabilities, or anything in between,Amazon Lending has the solutions to turn your ecommerce ambitions into reality.

Get in touch for a free 30-minute consulting session on accelerating your Amazon growth.

Charles Scott is a dynamic professional whose academic and career achievements demonstrate a strong commitment to excellence in the retail and consumer service industry. Graduating with an MBA from New York University in 2013, Charles has built a diverse and impressive career portfolio. He has held significant roles as a manager, advisor, and marketer, showcasing his multifaceted skills and deep understanding of the industry.

Beyond his direct professional engagements, Charles has made a notable mark as the head writer and founder of ExpertBeacon.com. This platform stands as a testament to his dedication to consumer empowerment and education. ExpertBeacon.com is a resource designed to assist consumers in addressing their persistent questions about products, services, and companies. Under Charles's leadership, the site provides in-depth, well-researched, and accurate information, all structured in easy-to-follow guides and articles. His work here not only highlights his expertise in the field but also his commitment to providing valuable, actionable information to the public.

Charles's approach is centered on a keen understanding of consumer needs and market dynamics, making him a respected voice in the industry. His contributions through ExpertBeacon.com and his professional roles reflect a blend of strategic thinking, practical knowledge, and a genuine desire to enhance consumer experiences in the retail and consumer service sectors.

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