Amazon offers financing options to eligible sellers, helping them secure short-term loans to restock inventory, boost sales, and grow their businesses. Unlike traditional business loans, Amazon Lending is invite-only, meaning only sellers with a proven track record of success on the platform can access these funds.
However, Amazon has made some major changes to its lending program. The company discontinued its direct lending program and now works with third-party financing providers to offer loans to sellers. This shift has brought new financing options, but also different eligibility requirements and loan terms that sellers must understand before applying.
So, how does Amazon Lending work? Who qualifies? And what alternatives exist for sellers who don’t receive an invitation? This guide will break down everything you need to know to make an informed decision.
What is Amazon Lending?
Amazon Lending is a financing program designed to help small and medium-sized businesses (SMBs) on Amazon get access to capital. The goal is simple: provide funding to high-performing sellers so they can scale their operations and increase sales.
Originally, Amazon directly funded these loans, but the company stopped offering direct financing and now collaborates with third-party lenders like SellersFi, Parafin, and Marcus by Goldman Sachs to provide loan options.
Amazon Lending is not a traditional loan program where businesses can apply freely. Instead, it’s an invite-only initiative where sellers with consistent sales, good account health, and a strong inventory turnover rate are selected by Amazon’s algorithm.
The funds are typically used for:
- Inventory purchases to prevent stockouts and maintain sales momentum.
- Scaling operations, such as launching new products or expanding into new markets.
- Marketing and advertising to increase visibility and drive traffic to product listings.
Amazon’s decision to stop direct lending hasn’t slowed down its financial influence. The company generates over $140 billion in seller fees annually, making it clear that keeping sellers profitable is in Amazon’s best interest. By offering lending options through third-party providers, Amazon continues to facilitate business growth while reducing its own financial risk.
Eligibility Requirements for Amazon Lending
Since Amazon Lending is invite-only, sellers cannot directly apply for a loan. Instead, Amazon evaluates seller performance and extends invitations to those who meet certain criteria.
To check eligibility, sellers can log into Seller Central and look for an Amazon Lending invitation under the “Growth” or “Loans” section. If no invitation is available, it means you do not currently qualify—but eligibility can change over time as your business grows.
Factors Influencing Eligibility
Amazon uses a variety of metrics to determine eligibility, including:
- Sales history and growth – Consistently strong sales performance increases the likelihood of receiving an invitation.
- Revenue and order volume – Higher revenue and frequent transactions signal stability.
- Inventory value – Sellers with a high inventory turnover rate are seen as lower risk.
- Account health – Maintaining high customer satisfaction metrics, low order defect rates, and minimal policy violations is essential.
- Seller tenure – New sellers typically do not qualify, as Amazon prefers businesses with a proven track record.
If you haven’t received an invitation yet, focus on increasing sales, maintaining excellent account health, and improving inventory turnover to boost your chances.
How the Application Process Works
Once a seller receives an Amazon Lending invitation, the application process is quick and fully online. Here’s how it works:
- Check for an invitation in Seller Central under the “Loans” section.
- Review loan terms, including interest rates, repayment schedules, and provider details.
- Agree to share Amazon sales data with the financing provider.
- Complete the application on the third-party lender’s website.
- Await approval—most lenders provide a decision within one business day.
- Receive funds upon approval, with loan disbursement usually happening within a few days.
Since the application is based on existing Amazon sales data, no credit check is required in many cases. This makes Amazon Lending an attractive option for sellers who may not qualify for traditional bank loans.
Loan Amounts, Interest Rates, and Repayment Terms
Amazon Lending offers various loan sizes depending on a seller’s sales performance and inventory value.
| Loan Amounts | Repayment Terms | Interest Rates |
| $1,000 – $5 million | 3, 6, 9, or 12 months | Varies based on loan size and lender |
Key Loan Features:
- Fixed monthly payments are automatically deducted from the seller’s Amazon disbursements.
- If the available balance is insufficient, the remaining amount is deducted from future disbursements.
- No origination fees or prepayment penalties—sellers can repay early without additional costs.
- Interest rates are competitive, often lower than traditional business loans or credit cards.
Because Amazon and its financing partners already have access to seller performance data, loan decisions are made quickly, and funding is provided within days instead of weeks.
Benefits of Amazon Lending
For sellers looking to scale, Amazon Lending provides several advantages:
- Fast access to capital – Traditional loans can take weeks or months to process, but Amazon Lending funds are typically available within days.
- No credit score requirements – Since loans are based on Amazon sales performance, sellers with limited credit history may still qualify.
- Flexible loan sizes – Whether you need a small cash boost for a seasonal restock or a large loan for expansion, Amazon Lending offers options tailored to different business needs.
- Seamless repayment process – Payments are automatically deducted, reducing the risk of missed payments and late fees.
- No hidden fees – Amazon Lending loans do not include origination fees or prepayment penalties, making them more cost-effective.
By providing fast, data-driven financing, Amazon Lending allows sellers to focus on growth without the hassle of traditional bank loan applications.
Potential Drawbacks and Limitations
While Amazon Lending is a great option for many sellers, it does come with some limitations:
- Invite-only program – If you haven’t been invited, you cannot apply directly.
- Funds must be used for business purposes – Unlike general business loans, Amazon Lending funds are restricted to inventory, marketing, and expansion.
- Limited flexibility – Loans are fixed-term, meaning sellers cannot adjust repayment schedules based on cash flow fluctuations.
- Dependence on Amazon sales – Since repayments are deducted from Amazon disbursements, sellers experiencing seasonal slowdowns may face cash flow issues.
For sellers who prefer more control and flexibility, alternative financing options may be worth considering.
Amazon’s Third-Party Lending Partners
Since Amazon stopped offering direct loans, it now collaborates with third-party financing providers to continue funding sellers. Here are the primary lending partners:
1. Parafin (Amazon’s Official Lending Partner)
Parafin is the main financing provider for Amazon Lending, offering revenue-based financing to sellers. Unlike traditional loans, Parafin’s financing works by deducting a fixed percentage of daily sales until the loan is fully repaid.
Key Features:
- No fixed monthly payments – Repayments adjust based on sales volume.
- No credit checks – Eligibility is based on Amazon sales performance.
- Fast approval – Most applications are processed within 24 hours.
This is ideal for sellers who experience seasonal fluctuations in sales since payments are proportional to revenue.
2. SellersFi (Formerly SellersFunding)
SellersFi provides flexible working capital solutions for eCommerce businesses, including Amazon sellers.
Loan Features:
- Loan amounts up to $5 million
- Flexible repayment terms (3–24 months)
- Fast funding (within 48 hours)
- Low interest rates compared to credit cards
Unlike Amazon Lending, SellersFi allows sellers to apply directly without needing an invitation.
3. Marcus by Goldman Sachs
Marcus offers traditional term loans to Amazon sellers, with fixed monthly payments and no early repayment penalties.
Key Features:
- Loan amounts from $5,000 to $75,000
- Fixed interest rates
- Repayment terms of 12–48 months
- No fees or hidden charges
For sellers who want predictable monthly payments and prefer a well-known financial institution, Marcus by Goldman Sachs is a solid option.
Best Amazon Lending Alternatives for Sellers
If you don’t qualify for Amazon Lending or prefer more flexibility, here are other funding options to consider:
1. Business Lines of Credit
A business line of credit is a flexible financing option that allows sellers to borrow up to a pre-approved limit and repay as needed.
Pros:
✔ Only pay interest on the amount used
✔ Can be used for any business expenses
✔ Available from banks, online lenders, and fintech companies
Best Providers:
- BlueVine (up to $250,000, fast approval)
- Fundbox (low credit score requirements)
2. E-commerce-Specific Loans
Many fintech companies offer loans designed for online sellers, often with sales-based repayment models.
Top E-commerce Lenders:
- Payability – Offers cash advances based on daily Amazon sales.
- Kabbage (American Express) – Provides fast-access loans for small businesses.
- OnDeck – Short-term loans with quick approval.
These options work well for sellers who need fast capital with minimal paperwork.
3. Amazon Seller Credit Cards
A business credit card can be an effective financing tool if you need short-term cash flow solutions and can pay off balances quickly to avoid high-interest rates.
Best Amazon Seller Credit Cards:
- Amazon Business Prime American Express (5% back on Amazon purchases)
- Chase Ink Business Cash (0% intro APR for 12 months)
- Capital One Spark Cash Plus (Unlimited 2% cash back)
For sellers who frequently purchase inventory on Amazon, using an Amazon credit card can offer significant cashback rewards.
4. Inventory Financing
Inventory financing is a specialized loan where the inventory itself serves as collateral.
Pros:
✔ Ideal for sellers who need large bulk inventory orders
✔ Doesn’t require a high credit score
✔ Payments are tied to inventory turnover
Best Providers:
- Kickfurther – Offers flexible inventory financing.
- AccrueMe – Provides interest-free growth capital in exchange for a profit share.
This option is best for established sellers who need large inventory purchases but don’t want to take on traditional debt.
Is Amazon Lending Right for You?
Amazon Lending can be a powerful tool for growth, but it’s not the only option available. If you qualify for Amazon Lending and need a fast, hassle-free loan, it’s worth considering—especially since it doesn’t require a credit check.
However, if you want more flexibility or better interest rates, alternative financing options may be a smarter choice.
Whatever route you take, always ensure that borrowing helps your business grow rather than creating financial strain.
