Amazon have launched a new financing solution, a merchant cash advance, provided by Parafin for sellers in the U.S. This new finance option allows eligible businesses to access capital from $500 up to $10 million.
Amazon is committed to providing convenient and flexible access to capital for our sellers, regardless of their size, Today’s launch is another milestone in strengthening Amazon’s commitment to sellers, and builds on the strong portfolio of financial solutions we already provide. This latest offering significantly expands sellers’ reach and capabilities, and broadens their access to capital in a flexible way—one that helps them control their cashflow, and by extension, their entire business.– Tai Koottatep, director and general manager, Amazon WW B2B Payments & Lending.
The program ties payment on the cash advance to a portion of sellers’ future sales for a fixed capital fee and provides eligible Amazon sellers with easy and quick access to capital when they need it, paired with flexible payment plans.
With this program, sellers can access capital in a matter of days with transparent and capped rates, no fixed term, no personal guarantee, no credit checks or excessive paperwork, and no late fees. The program has already rolled out to some U.S.-based businesses today, and it will be available to hundreds of thousands of eligible sellers by early 2023.
It can be difficult for small- and medium-sized businesses to access capital, regardless of whether they’re just getting started or are more established, What Amazon is doing in partnership with Parafin to provide quick access to capital in a convenient and transparent way—and one that protects sellers during periods of low or no sales—is significant for the industry. It will be exciting to see how Amazon sellers use this merchant cash advance solution to help grow their businesses.– Laurie McCabe, partner, SMB Group.