Amazon Lending at the click of a button

Amazon LendingAmazon Lending has been live in the UK for around a few months now and this weekend we managed to snag a screen shot of some typical rates on offer.

It would appear that Amazon aren’t waiting for sellers to apply for finance. They’re actively popping up information on loans saying “Based on your Amazon selling performance, you are invited to apply for a loan” and specifying the amount that’s available to you.

The interest rate we’re seeing is 5.9% which from what we’ve heard from multiple sellers who’ve been invited to apply for loans is pretty typical. However as in this case the loan was offered for a six month period the total cost works out to be 2.73%.

Amazon Loan FeesThere are any number of reasons that you might want to take a loan. It could be to negotiate a higher discount with your supplier or to access unexpected bulk buy deals at knock down prices. Perhaps you want to ramp up your inventory levels in preparation for Black Friday and Christmas or the attractiveness of Amazon’s offer could be something as simple as their rates being more attractive than your existing lending arrangements with your bank or credit card company.

Of course Amazon aren’t the only company to offer loans based on your seller performance. Companies such as Iwoca and Ezbob have made such loans common place and PayPal also offer merchant cash advances. Amazon’s main differentiator is their slick integration with a loan amount agreed and all you have to do is click the button to accept it. With any other company you have to think about it and then go looking for the loan.

Are you in the market for a loan and have Amazon offered you finance at the click of a button?