Interest free loans to cover Amazon disbursement failure
As reported yesterday, it appears that Amazon possibly had issues disbursing funds into seller’s bank accounts. Judging by the comments in the previous post there is a lot of uncertainty and concern among sellers on how this may affect their cashflow. Amazon have had a problem, but small businesses don’t have the luxury of deferring their bills. Also, in the critical period running up to Christmas, sellers cannot afford to miss out on opportunities that could make or break their year.
That’s why iwoca, the leading e-commerce lender, has decided to step in; they will offer interest-free funding for up to 2 weeks to affected sellers to ensure that they won’t lose out. Sellers need to sign up on iwoca’s website and send their account manager evidence of the failed disbursement before withdrawing funds. Furthermore, they will fast-track applications to make sure eligible sellers have access to funds swiftly.
“We don’t want any seller to miss out during this critical period. We have already heard from a number of customers who have concerns about upcoming disbursements and want to make that sellers don’t get hit by a potential lack of capital” says Christoph Rieche, co-founder of iwoca. “Sadly, we may not have enough funds for all sellers but the offer stands until we run dry“‘
What? No Wonga.com?
More power to the fantastic guys at IWOCA but I’m confused.
I thought the problem was that the “Failed Disbursement” emails were sent in error – not that disbursements had actually failed to take place.
The emails I’ve received from Amazon all state: “We got in touch with you because, due to a technical problem, you have received a notice informing you that one or more payments were not processed correctly. Please ignore this notice: all disbursements are being made usually in your bank account.”.
So…if the disbursement did in fact happen correctly why the need for IWOCA to step in?
Hi Steve, we’ve had emails from an affected seller today who hasn’t had the £53,000 he’s owed paid into his account. I also heard of another seller waiting in hope for £280,000!!!!
I don’t have as much due in as those 2 sellers (I wish) but the amount that I should have received Friday is enough to seriously effect my cash flow, and it’s not pending to go in Monday either so I am really starting to panic, Amazon’s attitude seems to be it has been sent so should be with you by now so it’s not our fault it’s the banks faults, strange how it can be so many different banks that are at fault?
I guess you will be telling your bank what Amazon have said and seeking their confirmation?
I think Amazon themselves had a cashflow problem last Monday/Tuesday/Wednesday which is why this ‘issue’ arose.
I don’t think they had the cash to pay sellers so they delayed disbursements and blamed a technical glitch. Same happens every year with them around this time.
They talked about the 15th/16th being the dates they had issues but disbursements supposedly made on the 14th have still not appeared either. Have they actually got the money to pay sellers everything they owe now and have they actually made the transfers or is this just good old fashioned stalling? :-/
Why do you think this? Is it just an idea you had or is there any news/info to substantiate this idea?
Just my idea. I think I’m entitled to an opinion though.
A company as big as Amazon with a cash flow problem?
We are all in the Whitlingham – (Norfolk expression)
A company as big as Amazon with a cash flow problem
,total bollocks [English Expression]
So you don’t think large companies ever have cashflow problems? That is what I’d call total bollocks.
Why did everyone think PayPal were delaying immediate payments when they were forced to do so by the FSA? Because they didn’t have the money to pay everyone straight away.
The key to problems is always in the balance sheet. Why have the larger High Street retailers all been extending their payment times to suppliers over the past few years with almost all of them having ever-shrinking balance sheets?
A large turnover doesn’t mean a lot of money laying about and Amazon would be no exception.
You can’t use what people “thought” as reasoning for a companies actions!!!
So far as Amazon goes on their last available balance sheet (June 2013) they had $3,704,000,000 of cash or cash equivalents. That’s not quite the same as £3.7billion as it’s only in dollars, but it’s still a chunk of money!
So has Amazon offered anybody a tangible explanation for the issue?
Amazon haven’t given any explanation yet, we asked again today but haven’t managed to find someone with the authority to tell us!
It may be that they’re gagged as they have their investor call on the 24th of October and it’s quite usual for companies not to release any news in the run up to these calls – could impact their stock prices
That covers my disbursement. I got my money anyway.
I also got the email saying it had failed. If they were being naughty, why would they send the failure email to people whose money they have not kept?
I would have thought that the real reason is that Amazon and perhaps Paypal are being cute and lending “Spare” money(ie your money) out on the short term money markets and benefiting from the interest earned.
The idea that Amazon are “being cute” is in your mind only. Do you have any reason to believe Amazon are “being cute”?
My money is on the cock-up option here rather than the ‘cute’ conspiracy theory.
Amazon run hugely complex systems so it only needs a very small error for all hell to break loose and here they simply ‘froze’ the payments system while they tried to sort it out.
Even though the payment delay for some is very regretable indeed even manually putting through the ‘late missing’ payments is a non trivial task even for amazon with the possibility it will actually make an existing problem even worse.
Those of us who have had online card payment issues will know just how much time & effort is needed to sort issues out when it goes wrong.
i’ve still not had my payment that was from 14th :(