Amazon sellers need access to capital to invest in their business and accelerate growth. However, access to financing has become more difficult since Amazon stopped directly lending to sellers.


Amazon sellers face several challenges that are unfamiliar to most brick-and-mortar businesses. Simply put, Amazon sellers have large upfront costs and long payment delays. Combined, these cash flow challenges make access to capital more essential for Amazon sellers than for just about any other type of business. 


As many Amazon sellers know, having access to sufficient inventory is an ever-present concern. Due to high inventory turnover and storage challenges, sellers must order or manufacture inventory well in advance to meet demand. Running low on inventory is problematic not just for the bottom line but also for the seller's reputation.

Sellers must also contend with high marketing and shipping costs. Amazon is a competitive marketplace filled with an almost endless number of products. Unlike brick-and-mortar stores, which can rely on foot traffic and window displays, Amazon sellers often have to advertise for their products to be seen. 

Finally, Amazon sellers must wait longer for payment than standard retail businesses. New sellers face an especially long wait time for payment and often have difficulty re-stocking their inventory due to cash shortages. Even well-established sellers have long delays on certain sales when Amazon determines that it requires additional time to release the payment. 

Amazon sellers need access to capital to grow and scale



New Sellers

      Struggle to Qualify for Traditional Loans - New sellers can’t show past revenue generation and haven’t built up credit over time. Banks view them as risky and prefer to lend to more traditional brick-and-mortar businesses.

      Use Credit Cards to Provide Funding - While startup loans or lines of credit would be ideal for the needs of new businesses, they simply aren’t available in most cases. Credit cards offer several advantages as a financing method. They help new businesses build up credit to qualify for other types of financing in the future. 

      Get Rewarded - As a bonus, credit cards offer rewards that can be used to save money on a whole range of services such as rental cars, hotel stays, and flights. Credit cards are also a good place to turn because they are convenient and rewarding for paying off recurring advertising costs on the Amazon platform. However, like all credit cards, it is important to pay them off regularly to avoid the large interest that can accrue on late payments. 
      Use Daily Advance Programs - These programs help sellers to accelerate their receivables from Amazon. Typically most sellers receive their sales disbursements (the net of fees, refunds, and advertising spend) every two weeks. However, for early stage sellers there are programs that enable them to access the previous day’s net sales instantly for a small fee. This program allows sellers to reinvest into their marketing budget much sooner without having to borrow from a lender.


Experienced Sellers

      Have Many More Financing Options - Experienced Sellers can produce documentation related to revenue numbers and creditworthiness. They can consider a whole host of options, including inventory financing lines, bank loans including SBA loans, revolving lines of credit, revenue-based financing, and asset-based financing.
      Qualify for Small Business & Small Business Administration (SBA) Loans - These are attractive options for experienced sellers. These loans are ideal because they can provide significant funds at reasonable interest rates. Long loan terms (up to 10 years in some cases) also provide experienced sellers increased flexibility. 
      Have Longer Decision Times - The decision time for small business and SBA loans can be longer than other options with stricter underwriting requirements. Due to the nature of the business, most Amazon sellers need funds quickly to fill cash flow gaps or take advantage of short-term growth opportunities. 

      May Still Consider Credit - Experienced sellers who can secure a small business or SBA loan may still want to consider using a line of credit or credit cards for certain purchases. Advertising brings in customers, and experienced sellers typically spread their advertising across many channels. By putting those recurring expenses on a credit card, experienced sellers can rack up the reward points.


1P Sellers

      Act as the Wholesaler to Amazon - Alternatively, Amazon acts as the retailer. In that case, 1P sellers have substantial manufacturing/inventory procurement and fulfillment expenses, which make access to external funding critical. 

      Should Consider Purchase Order Financing -  This type of financing allows wholesalers to fulfill large orders when they need more working capital or cash flow to produce the products on order. The process begins when a seller receives a large order that it doesn’t have the financial ability to fulfill. The seller then contacts a purchase order financing lender and applies for funds. After the purchase order financing lender performs its due diligence, the lender will often pay the manufacturer or supplier directly, and the seller repays the financing under the agreed terms. 

3P Sellers

      Use Amazon to Sell Directly to Customers - Therefore, revenue-based financing might be a quicker option when the seller needs an infusion of cash.
      Should Consider Revenue-based Financing - This is an advance that the seller agrees to pay back over time by promising the funder a percentage of their future revenue. The primary advantage to sellers of revenue-based financing is speed and high approval rates.

      Can Get the Money They Need Fast - Revenue-based advances are often approved quickly. There is also less pressure to pay back the advances according to a set schedule. The payback period is determined by the amount of revenue the seller can generate.


Consider your unique financing needs based on the type of Amazon seller you are.


Seasonal Sellers

      Struggle with Cashflow Issues - Seasonal sellers must make large inventory-related purchases ahead of the busy season and withstand low sales volume in the slow season. 

      A revolving line of credit (LOC) is an excellent option - LOCs can be obtained from various sources, including brick-and-mortar banks, online banks, and certain fintech companies. Seasonal sellers can borrow up to the maximum of their credit limit and pay the funds back over time. 
      Enjoy the on-demand nature of LOCs - LOCs provide a high degree of flexibility and offer many benefits. Funds can be obtained quickly and spent on anything the seller needs. Interest is only owed on the amount of credit used, and there typically aren’t any limits on the number of times sellers can draw funds until the credit limit is reached.
      Experience the Drawbacks of LOCs  - The approval process of LOCs can be more involved than other funding options. Sellers may be required to provide collateral in order to receive approval for the LOC, and loan amounts are commonly lower than small business loans and SBA loans. They will also typically have a shorter repayment term ranging from 6-18 months.


Year-Round Sellers

      Enjoy Consistent Demand Throughout the Year - The primary goals for year-round sellers involve maintaining healthy inventory levels while growing their business and ensuring that their marketing and supply chain is functioning smoothly.
      May Choose to Invest in Their Business - Business owners need to invest in their business to streamline or expand their operations. Because they have a track record of consistent revenue, year-round sellers can often qualify for loans that other sellers can’t.
      May Want More Flexible Repayment Terms - In general, small business loans and SBA loans offer the longest repayment terms compared to other financing options. Inventory financing programs may be a better option. Should year-round sellers need additional financing, it makes sense to pursue these options first to secure the most advantageous loan terms. Just keep in mind that the application process is extensive, and lenders may require good credit and strong financial performance.
Yardline can provide inventory financing to meet any business's needs.


FBA (Fulfillment by Amazon) Sellers

      Store Products in Amazon's Fulfillment Centers - Amazon is the one that packs and ships the items to the customer. 

      Used to Get Loans from Amazon - When it comes to funding for FBA sellers, Amazon loans used to be a great place to start looking. However, since Amazon is no longer lending directly to sellers, it makes sense to look into other options.
      Consider Combining an LOC with Credit Cards - Assuming you can qualify for sufficient funds to manufacture or purchase inventory, combining an LOC with credit cards is a flexible option many FBA sellers use. The LOC provides cash when necessary, while the credit cards offer rewards and cash back on business purchases. 


FBM (Fulfillment by Merchant) Sellers

      Pack and Ship Products Directly to Their Customers - Unlike FBA sellers, FBM sellers don't have to rely on Amazon’s fulfillment centers and logistics network
      Is Ideal for Certain Types of Businesses - Being an FBM seller is especially ideal for businesses that sell large/heavy products or lack the high sales volume that FBA sellers typically have. 
      Should Consider Inventory Financing - These types of loans are ideal for businesses that keep a sizable amount of inventory on hand. By using the inventory as loan collateral, FBM sellers can access funds to cover cash flow needs, build/purchase more inventory, or accelerate growth. Unlike many other loan options, inventory financing does not require the seller to have an excellent credit rating or pristine financials.
      May Need Financing for Additional Reasons - If they plan to own and operate their own facility, they may also need financing to purchase real estate or equipment.



With Amazon discontinuing direct lending on its platform, sellers are looking for new sources of business financing. At Yardline, we make it easy for you to get the funds you need to grow your Amazon business. Simply complete a 3-minute application and get approved in as fast as 24 hours for the funding solution that best fits your needs. Yardline offers inventory financing, credit cards, small business loans, revenue-based financing, revolving lines of credit, purchase order financing, and more. Qualified sellers can get $5k to $20 million in funding. Apply today and watch your business grow. 

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