6 Top Ways Amazon Sellers Can Get Business Loans

Selling products on Amazon is a great way to make a sizable income, especially if you have a wide variety of items available. While this is a simple feat for some, others struggle to fund new business purchases.

The great thing is that there are several financing options available for those who need assistance. Here are the top 6 ways for sellers to obtain business loans.

1. Peer-To-Peer Loans

These are a great idea for many who are just getting started, especially if you have little to no collateral to offer in order to qualify for a traditional loan. Since you are borrowing the funds from peers, you will not have to submit an application and wait patiently for approval. In fact, there are some sellers who have received loans in as little as a few minutes.

The way this works is different from many loan options since you are not required to have impeccable credit. It is as simple as creating a profile, letting everyone know what the funds are for and hoping to appeal to those who are financially able to assist you.

The greatest benefit of this loan source is the fact that you may be offered funds from more than one person, which means that you will have the opportunity to select the one with the most favorable terms.

2. Amazon Sellers Funding

If you are in good standing with Amazon, it may be possible for you to apply for a loan with them. They have an algorithm that looks at the performance of your store and determines whether or not you would be a good candidate for funding.

Factors like having a large number of sales and 6-month minimum sales history are given more focus than credit scores when it comes to determining eligibility. This means that those with less than perfect credit may still qualify.

3. Invoice Factoring

This is a solid way to get funding rather quickly without having to offer any type of collateral. The way this works is that you sell your accounts receivable to a financial institution in exchange for the money you need.

After you pay off the receivables, you are given the value of your invoices and any amount in reserves. There is a fee for this service and in some cases, it can be rather large, so make sure that you read all of the fine print before signing anything.

4. A Line Of Credit

There are some financial institutions that allow business owners to take out a line of credit. Since selling products via Amazon is considered a business, then there is a chance you may qualify. Generally, you are offered a certain amount based on things like sales numbers and credit history. You can use it all at once if needed or you can use it a little at a time. This would also work if you are running a KiBO Code type store.

The terms and fees will depend on the company you are working with, so shop around to make sure you are dealing with the one that has the most favorable offer.

5. Traditional Banks And Credit Unions

Depending on how well you are doing, you might qualify for a loan through a bank or credit union in your local area. These are the most difficult to qualify for, especially since your credit history, banking history, sales numbers, income, and other factors will be considered.

In addition, the waiting period can be rather long. One benefit of this option is the fact that these institutions are likely to have lower fees than many of the other options that are available to you.

6. Merchant Cash Advances

There are some lenders who are willing to offer loans to Amazon sellers as long as they can verify the amount of money that flows into their account on a regular basis.

In most cases, bad credit will not deter you from qualifying. It is as simple as proving your income. Since your bank account will be checked in order to gauge the likelihood of the loan being paid back on time, there is no need for a lengthy application.

It is not very difficult to find a lender who offers cash advances. One of the best ways to get what you need would be to get a bad credit loan from Need Money Now. Not only will you get the funding that you need, but it will not take you so long that your business suffers in the interim.

If you are an Amazon seller and you are looking to increase your cash flow and expand your business, getting a loan may be the best course of action. Since everyone’s situation is not the same, it will be up to you to consider all of these options and determine which one would be the best solution to all of your financial woes.