Amazon launches flexible financing programme

The new programme gives businesses access to funding linked to their sales, which allows them to “repay as they earn”.

In collaboration with financing provider YouLend, Amazon can offer merchant cash advances that will give UK-based businesses selling on Amazon.co.uk a new flexible financing option to create greater cash-flow flexibility.

The revenue-based programme enables merchants to grow their businesses and build out inventory, secure new equipment or accelerate their marketing with the promise of capped rates and repayment based on current sales. 

Businesses can apply for funding from £500 up to £2m, depending on affordability, through their existing Amazon UK business accounts. 

Businesses need to be trading on Amazon for a minimum of three months before they are eligible to apply.

Sellers pay a single fixed fee and repayment is only required when merchants make sales. Repayments are tied to a percentage of their future sales on Amazon.

Amazon’s general manager of B2B payments and lending Samarth Gogia said: “We’ve heard from Amazon sellers in the UK how much they value fast, flexible and accessible funding, which is why we’re excited to announce a merchant cash advance that expands our range of funding options for Amazon sellers.

“In collaboration with YouLend, this new option will allow sellers to increase their cash flow with confidence, allowing them to make repayments based on how their business is performing.”

Raymond Pucci, IDC research director of worldwide consumer and small business lending, said of the move: “Most traditional bank lenders have tightened their commercial loan standards, making it more difficult for small businesses to obtain working capital that is absolutely critical for them to operate successfully.

“The new Amazon and YouLend merchant cash advance programme provides small and medium businesses with an alternative means of credit that is fast, convenient and flexible.

“This new funding source will be valuable for a wide range of businesses, especially start-ups and those that do not qualify for a standard-term loan.”