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Financing for Amazon Sellers: Best Small Business Loan Options for 2024
Amazon sellers may have difficulty securing financing from traditional banks, which are accustomed to working with brick-and-mortar businesses that have collateral. But many online lenders offer unsecured Amazon business financing, so Amazon sellers have options when they need funding.
Written by:Lindsay Frankel
Third-party sellers now account for over half of Amazon sales. Many of these businesses will need funding to expand their product offerings, and not all sellers will be eligible or best-served by the Amazon Lending program. There are options for business owners seeking an alternative, however. Online lenders can offer smaller amounts, faster funding, and unsecured options that better meet the needs of Amazon sellers than traditional banks.
Best Financing Options for Amazon Sellers
- Lendzi: Best for Fair Credit
- Backd: Best for Large Loans
- Bluevine: Best for Speed and Convenience
- Biz2Credit: Best for Comparing Your Options
- National Funding: Best for Customer Service
- Uncapped: Best for Revenue-Based Financing
In this review, our experts highlight the terms, rates and fees of each lender, and explain what makes them a good choice. We also share potential downsides of each company, and provide a rating methodology you can use to select the best financing option for your needs.
Financing for Amazon Sellers: Best Business Loan Options for 2024
Best Overall
Lendzi: Best for Fair Credit
Factor Rate
Starting at 1.10
Loan Amounts
Up to $4 million
Min. Annual Revenue
$180,000
Key Features
- Borrow up to $4 million in working capital
- Min. credit score: at least 500
- Min. time in business: 6 months
- Equipment financing up to $2 million
- Business line of credit up to $250,000
- See your options without hurting your credit
- Flexible terms: 3 to 15 months
- Excellent customer reviews on independent review sites
- Get funding in as little as 24 hours
Pros & Cons
- No minimum credit score requirement
- Offers multiple loan products with flexible terms
- Open to businesses with six months of history
- Excellent customer service reviews on Trustpilot
- Relatively low starting rates on some products
- Funding in as little as 24 hours
- Offers online chat and phone support
- Funding phone call required
- $180,000 in gross annual revenue required
- High APR on short-term loans
Overview
As both a direct lender and lending partner, Lendzi brings a ton of options to Amazon sellers, with seven loan products and a wide range of repayment terms. Lendzi is also relatively lenient with credit score requirements and open to new businesses with six months of history.
Main Features
Terms and rates vary by product, but Lendzi offers factor rates starting at 1.10 for merchant cash advances, business lines of credit starting at 6.2%, and equipment financing as low as 3.49%. Rates are somewhat higher for working capital and term loans. You can get SBA loans through Lendzi as well. Long-term loans are available up to 84 months, and you can borrow up to $500,000 with no collateral (Up to $5 million for SBA loans) or up to $2 million in equipment financing. There are no minimum credit score requirements, but ideal candidates have a 650 credit score or higher. You need at least 6 months in business and $180,000 in gross annual revenue to qualify.
Lendzi offers a variety of loan options geared towards Amazon sellers, such as merchant cash advances with low factor rates, and is friendly to fair credit borrowers. The lender is regarded for its customer service as well, but business owners who want a fully-online application or other digital tools may be better served elsewhere.
Backd: Best for Large Loans
Factor Rate
Starting at 1.10
Loan Amounts
Up to $2 million
Min. Annual Revenue
$200,000
Key Features
- Borrow up to $2 million
- Min. Credit Score: 640
- Min. Time in Business: 2 years
- Industry best factor rate for MCA - as low as 1.10
- APR for the Line of credit product starts at 35%
- Flexible repayment terms up to 16 months
- Get funding in as little as 24 hours
- Check your rate with a soft credit pull
Pros & Cons
- Up to $2 million in working capital
- Flexible repayment terms up to 16 months
- Check your rate without hurting your credit
- No collateral required
- Excellent customer service reviews on Trustpilot
- Fast funding in as little as 24 hours
- Automatic daily, weekly, or semi-monthly payments
- Undisclosed rates
- Funding requires a phone call
- Requires $100,000 in annual revenue
Overview
Backd offers a business line of credit up to $750,000, which is higher than what most online small business lenders can provide, along with working capital loans up to $2 million. What’s more, no collateral is required and funding is fast, making Backd an ideal choice for Amazon sellers.
Main Features
Backd offers financing options for Amazon sellers starting at $10,000. You can get a business line of credit up to $750,000 or a working capital loan up to $2 million, giving you access to higher limits than are typically offered in the small business lending space. Flexible terms between four and 16 months are available for working capital loans, while you can repay draws from a business line of credit in six or 12 months. Backd doesn’t disclose APR ranges, but you can check your rate with a soft credit pull. To qualify for financing from Backd, you’ll need at least $100,000 in annual revenue and one year in business. Backd doesn’t disclose a minimum credit score, however. The company may work with a third-party lender to fund your FBA loan if you don’t meet the requirements for direct lending.
Backd offers high borrowing limits, quick funding, and flexible repayment terms, but the lender doesn’t disclose fees and the application process isn’t entirely online, which may deter some borrowers.
Bluevine: Best for Speed and Convenience
Interest rates
Starting at 6.2%
Loan Amounts
Up to $250,000
Min. Annual Revenue
$480,000
Key Features
- Funding up to $250,000
- Min. credit score: 625
- Min. time in business: 6 months
- Interest rates starting at 6.2%
- Loan Repayment 6-12 months terms
- Quick and simple application
Pros & Cons
- Same-day funding available for a $15 wire fee
- Quick and easy application process
- Convenient online dashboard
- Rates starting at 6.2%
- No prepayment penalties
- No origination or maintenance fees
- Credit limit grows with your business
- Requires 24 months of business history
- Requires at least $40,000 in monthly revenue
- Not available in all states
Overview
With Bluevine, you can get a funding decision in five minutes and access a business line of credit up to $250,000 with rates starting at 6.2%. Bluevine makes it super convenient to draw funds with one click, making the lender ideal for busy Amazon sellers, and there are few fees to worry about.
Main Features
Bluevine offers a business line of credit up to $250,000 with rates as low as 6.2% and your choice of a six or 12-month repayment term. To be eligible, you’ll need at least $40,000 in monthly revenue, a 625 credit score, and 24 months of business history. There are few fees to worry about and funding can happen as soon as the same day. Plus, Bluevine offers a convenient online platform to make drawing from your credit line easy.
For Amazon sellers that need quick funding now and ongoing access to credit, Bluevine offers the ideal solution, but you’ll need to be relatively established to qualify.
Biz2Credit: Best for Comparing Your Options
Interest rates
Starting at 7.99%
Loan Amounts
$25K to $500K
Min. Annual Revenue
$250,000
Key Features
- Working capital up to $2 million
- Term loans up to $500,000
- Term loan interest rate starts at 7.99%
- Loan Repayment 12-36 months terms
- Variable APR depending on the applicant
- Funding in 72 hours
- Soft credit pull
Pros & Cons
- Borrow up to $2 million
- Open to fair credit borrowers
- Open to businesses with six months of history
- Excellent reviews on Trustpilot
- Approval decision within 24 hours
- Offers extensive online resources
- Charges an underwriting fee or closing fee
- Requires $250,000 in annual revenue
- Not a direct lender
- Some details won’t be available until you apply
- Minimum $25,000 loan amount
Overview
Biz2Credit is an online funding platform that connects borrowers with lenders that offer working capital, term loans, ERTC loans, and commercial real estate loans. The company’s working capital loans come with borrowing limits up to $2 million and are available to newer businesses with fair credit, making Biz2Credit a great fit for Amazon sellers.
Main Features
Biz2Credit partners with lenders to offer working capital, term loans, ERTC loans, and commercial real estate loans. Working capital loans come in amounts ranging from $25,000 to $2 million and are repaid from business receipts, but Biz2Credit doesn’t disclose starting rates or terms upfront. The broker also offers term loans from $25,000 to $500,000 with rates starting at 7.99% and terms ranging from 12 to 36 months. You’ll need at least $250,000 in annual revenue to be eligible, and you’ll be subject to an underwriting or closing fee. Working capital loans are available to business owners with a 575 credit score or higher and at least 6 months in business, but term loans require a 660 credit score and 18 months in business.
Biz2Credit can offer support with comparing your options, and may be especially advantageous for Amazon sellers seeking working capital with flexibility in repayment. But you’ll need to prequalify before you can evaluate all the details, and the broker charges an underwriting or closing fee in exchange for finding a funding solution for you.
National Funding: Best for Customer Service
Factor Rate
Starting at 1.10
Loan Amounts
Up to $500,000
Min. Annual Revenue
$250,000
Key Features
- Min. Time in Business: 6 months
- Min. Credit Score 600
- Borrow up to $500,000 in working capital
- Equipment financing up to $150,000
- Factor rate from 1.10
- Fast funding
- Early payment discounts
- Equipment financing repayment 2-5 years
- Working capital repayment 4 months - 2 years
Pros & Cons
- Excellent customer service reviews on Trustpilot
- Funding in as little as 24 hours
- Check your rate without hurting your credit
- No prepayment penalties
- Early payment discounts on equipment financing
- No minimum credit score requirements
- Factor rates can be expensive
- Must speak with a funding specialist
- Requires $250,000 in annual sales
- Charges an origination fee
Overview
National Funding offers flexible small business funding with fast funding times and equipment financing with no down payment requirement. You’ll get support from a funding specialist, and customer service reviews about National Funding are glowing.
Main Features
National Funding offers working capital and short-term business loans between $5,000 and $500,000 and equipment financing up to $150,000 with no down payment requirements. The lender doesn’t disclose rates, but reportedly uses factor rates that can be high. Terms range from four to 24 months for small business loans and two to five years for equipment financing. To be eligible, you’ll need $250,000 in annual sales and at least 6 months in business, but there are no specific credit requirements.
National Funding is great for Amazon sellers who want to speak to a funding specialist by phone and get great customer service during the application process. Just be sure to compare rates and fees with other lenders.
Uncapped: Best for Revenue-Based Financing
Revenue Share Rate
5% to 25%
Loan Amounts
Up to $10 million
Min. Annual Revenue
$600,000
Key Features
- Borrow up to $10 million
- Flat fee instead of interest rate for term loans: 2% - 12%
- Revenue-based financing: 5% -25% revenue share rate
- No minimum credit score
- No personal guarantees required
- Best for online businesses
Pros & Cons
- Fixed fees from 2% to 12%
- Offers revenue-based financing with no fixed repayment date
- Borrow up to $10 million
- No minimum credit score requirements
- Provides Visa debit cards for your team
- Offers automatic bill payments and tracking
- Offers unlimited free ACH payments
- Quick and easy online application
- Not available in some states
- Not available to sole proprietors
- Requires $10,000 in monthly revenue
- No phone or live chat support
Overview
Uncapped offers term loans and revenue-based financing with high borrowing limits and low, fixed fees. The lender is open to newer businesses and doesn’t have minimum credit requirements. The products are specifically tailored to businesses with an online model, and the revenue-based financing option is particularly well-suited to businesses that experience large fluctuations in revenue.
Main Features
With Uncapped, you can borrow between $10,000 and $10 million with a 2-12% fixed fee and repay the loan either in fixed monthly installments between three and 24 months or as a 5-25% revenue share until the principal and fee is paid. For both term loans and revenue-based financing, you’ll need at least six months in business and $10,000 in monthly revenue, but there are no minimum credit score requirements. Uncapped also offers several free financial tools to borrowers.
Uncapped is great for FBA sellers who want an entirely digital application process with access to financial tools, high borrowing amounts and low starting fees, and the option to repay the money as a share of their revenue. However, Uncapped is a new company with limited reviews and no phone support.
Main Features of the Best Financing for Amazon Sellers
Lendzi4.5
Backd4.5
Bluevine4
Biz2Credit4
National Funding4.1
Uncapped4.1
- Min. Credit Score - None
- Min. Revenue - $180,000 per year
- Loan Amount - Up to $5 million
- Monthly Fees - Varies by product
How to Choose the Best Business Loan for Amazon Sellers
When comparing small business financing options, pay attention to the following features, which our experts use to rank lenders:
- Loan Features: Look for lenders with flexible terms and options for repayment, and narrow down your options to lenders that offer the amount you need.
- Application process: Consider whether you want a fully-digital application or support from a human, and make sure you can check your rate with a soft credit pull.
- Interest rates and fees: Compare not only the interest rate charged by each lender, but also any origination fees.
- Qualification process: Check to see if you meet the lender’s requirements for minimum credit score, time in business, and annual revenue.
- Customer support: Consider how convenient it will be to get in touch with customer service when you need to. Does the company offer live chat and extended hours?
- Online user reviews: Look at customer reviews on third-party sites like Trustpilot and ConsumerAffairs. While some negative reviews are to be expected, patterns of significant complaints should raise a red flag.
- Perks and Bonuses: Look for features that make the company stand out, like payment flexibility and free digital tools.
Types of Business Loans for Amazon Sellers
While Amazon sellers may face issues getting financing from a traditional bank, there are other options available, including:
- Amazon Lending: The Amazon Lending program is an invite-only program for Amazon sellers that offers funding up to $2 million with a quick application. Amazon Lending offers term loans and interest-only loans, along with lines of credit and merchant cash advances through partner lenders.
- Term Loans: Many online lenders offer short-term and long-term business loans, which are received in a lump sum and repaid in fixed payments of principal and interest over a period of time. You can typically use these loans for any business need.
- Business Line of Credit: A business line of credit from an online lender allows you to draw against a revolving credit line as needed and only pay interest on what you borrow. It’s great for Amazon sellers who have ongoing financing needs.
- Merchant Cash Advance/Revenue-Based Financing: For Amazon sellers with fluctuating monthly revenue, it may be helpful to repay a lump sum loan as a percentage of your actual sales. Merchant cash advances or revenue-based financing make this possible.
How to Get a Business Loan for Amazon Sellers
The application process for an FBA small business loan varies by lender, but these are the general steps for getting Amazon business financing:
- Decide how much funding you need and the loan type you want, and narrow down your options to lenders you are eligible for
- Check your rate with a handful of lenders, ensuring they use a soft credit pull
- Accept the financing offer that best meets your needs, and upload additional documentation as necessary
- Speak with a funding specialist, if necessary, before final approval
- Read the find print and sign your loan documents
- Wait for the money to be transferred to your bank account
- Begin repayment (Tip: Set up automatic payments so you don’t fall behind)
Pros and Cons of Selling on Amazon
Amazon Business Benefits
- Allows you to reach more than 3 million customers
- Helps build brand awareness and trust
- Amazon FBA can handle the logistics for you, so you don’t need to worry about storage or shipping
- No need to host your own website
- Low start-up costs
- Offers online marketing options
- May be eligible for funding directly from Amazon
Amazon Business Disadvantages
- Competitive market for many product categories
- Charges high referral fees that can eat into profit margins
- Leaves you susceptible to fraudsters stealing your listings
- Less control over your brand image
How to Start an Amazon FBA Business
- Pick a niche product category and conduct market research to determine a product you can profit from
- Find a supplier or manufacturer for your product
- Register as an Amazon seller and pick your selling plan. You’ll need a bank account, credit card, tax information, and your ID to get started.
- List your first product, optimizing the description for searches
- Ship your inventory to Amazon
- Market your product with pay-per-click advertisements on Amazon and social media
- Receive payment from Amazon every two weeks (minus fees)
Conclusion
When you’re ready to expand your Amazon business, whether that’s through hiring employees, purchasing more inventory, or diversifying your product offerings, you have options for Amazon business financing. Even if your bank turns you away, several online lenders offer FBA loans and Amazon business lines of credit for small business owners. Even if you’re a newer business with less-than-perfect credit, it’s possible to find an online lender willing to work with you, and this guide is a great place to start.
*The required FICO score may be higher based on your relationship with American Express, credit history, and other factors.
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About the Author
Written by: Lindsay Frankel
Personal finance expert with 3 years experience specializing in researching, writing, and editing insurance, loans, and credit cards content
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