An amazon seller looking for investment to work on the inventory? Search no more as here are the top three ways one can borrow the amount they need.
The first way is proposed by Amazon itself. Amazon’s financing program called as the Amazon Lending is a way in which it sends out invitation for loan to potential sellers with at least six months of selling period at Amazon with sales up to $5000 per month on an average.
Applying to Amazon Lending is a simple process and it takes minutes to be precise. When first approached, the seller can ask for the amount they think would be sufficient to restock the inventory and get funded even within the same day. See InvestBurundi’s article on loans for Amazon sellers to know more about Amazon lending program.
While the advantage lies in being eligible for another loan once the seller has paid 50% of the existing one, the major disadvantage is the risk of losing your inventory in case of failing to pay the loan.
Lines of Credit
For those who don’t qualify for Amazon Lending, another way to be funded is by lines of credit from lenders online. This option is feasible for sellers who are looking for either more capital than Amazon offered or quick lending. The advantage here is the liability to take the money whenever you need it rather than being restricted the funds right away. When it comes to paying off, a seller needs to pay only what they have borrowed, when they have borrowed.
Merchant Cash Advances
This is perhaps, the fastest way to borrow money when in need. With MCA, the money can be lent at as fast as a couple of hours after applying. The pro of MCA is that it doesn’t look at the seller’s credit score as the only factor to approve, however, the interest rates can go high and it is feasible to first know the exact amount a seller would have to pay.