At a Glance
Rating Breakdown
Performance Overview
Scores out of 5, based on our editorial analysis
About Amazon Lending
Launched in 2011, Amazon Lending is one of the earliest platform-based lending programs in the e-commerce space and predates even Square Capital and PayPal Working Capital by several years. Available exclusively to sellers on the Amazon marketplace, the program has extended over $8 billion in financing to small and medium-sized businesses. The product lineup includes both term loans with fixed monthly payments and MCA-style advances where repayment is automatically deducted from Amazon seller payouts. Amazon Lending is invite-only and draws on data that Amazon has unique access to: not just your sales volume, but your inventory turn rates, customer return rates, product review scores, Buy Box win percentage, fulfillment performance, and account health metrics. This depth of data allows Amazon to assess seller quality far more precisely than any traditional lender could from bank statements alone. In recent years, Amazon has partnered with Marcus by Goldman Sachs and other lending partners to expand the program's capacity and offer longer-term products. The Marcus partnership specifically introduced lines of credit alongside the original term loan and MCA products, giving sellers more flexibility in how they access capital. The key consideration for Amazon sellers is that the program evaluates you solely as an Amazon seller, not as a business overall. If you sell $500K/year on Amazon but also do $300K through your own Shopify store, Amazon only sees the $500K. This can limit your offer amounts relative to your total business size. Declining seller metrics such as increasing returns, lower ratings, or inventory stockouts can reduce or eliminate your eligibility even if your overall revenue is growing. The factor rates (1.08 to 1.22) are among the lowest of any MCA-style product, and the automatic payout deduction means there are no separate ACH debits hitting your bank account. For Amazon-centric sellers, this is often the cheapest and most convenient financing option available. For diversified e-commerce businesses, it should be supplemented with other funding sources that consider total revenue.
Key Features
Data-Driven Offers
Amazon uses its deep knowledge of your selling performance, inventory turns, and customer satisfaction to generate funding offers specific to your seller profile.
Automatic Payout Deduction
For MCA-style products, repayment is automatically deducted from your Amazon seller payouts, eliminating the need for separate ACH debits.
Term Loan Option
In addition to MCAs, Amazon Lending offers fixed-term loans with predictable monthly payments, giving sellers a choice between flexible and fixed repayment.
No Impact on Seller Account
Taking an Amazon Lending offer does not affect your seller account standing, Buy Box eligibility, or search ranking on the marketplace.
How It Works
Check Seller Central
Log into Amazon Seller Central and check the Lending section to see if you have an active offer from Amazon or its lending partners.
Select an Offer
Review available options including advance amounts, fees, and repayment structures. Choose the offer that best fits your inventory and growth plans.
Accept Terms
Accept the offer electronically within Seller Central. Some offers may require basic verification but no external credit check.
Receive Funds
Funds are typically deposited to your linked bank account within 1-5 business days of acceptance.
Automatic Repayment
Repayment begins automatically via deductions from your Amazon seller payouts according to the agreed schedule.
What They Do
- Merchant Cash Advance
- Term Loans
- Line of Credit (via partners)
- Revenue-Based Financing
Debt Types They Take On
- Merchant Cash Advance
- Term Loan
- Revenue-Based Financing
- Working Capital
Fee & Cost Structure
Regulatory & Trust
Review Summary
Notable Case Studies
Private Label FBA Q4 Inventory Purchase
An Amazon FBA seller averaging \$60K/month in sales across 15 private label products needed \$100K to place a large inventory order from a Chinese manufacturer 90 days before Q4. The manufacturer required a \$72K minimum order for the per-unit pricing that preserved margins, plus \$28K for ocean freight, customs, and prep fees to get inventory into Amazon FBA warehouses by October 1.
Amazon PPC Advertising Scale-Up
An Amazon seller doing \$35K/month wanted to scale PPC advertising spend from \$3K/month to \$12K/month after discovering that increasing ad spend had a consistent 4.2x ROAS (return on ad spend). However, the \$9K/month incremental spend (\$54K over 6 months) required upfront capital the seller did not have.
Pros & Cons
Pros
- Among the lowest factor rates of any MCA-style product (1.08 to 1.22), significantly cheaper than traditional MCA providers
- Seamless repayment through Amazon seller payout deductions means no separate ACH debits hitting your bank account
- No external credit check required for most offers, and the process has zero impact on your personal FICO score
- Both MCA-style advances and fixed-term loans available, plus lines of credit through the Marcus by Goldman Sachs partnership
- Backed by Amazon (NASDAQ: AMZN), one of the largest and most financially stable companies in the world
Cons
- Strictly invite-only with absolutely no way to apply proactively or request an evaluation of your account
- Available only to Amazon marketplace sellers, completely excluding businesses that sell through other channels
- Offers may shrink or disappear during periods of declining seller metrics such as lower ratings, increased returns, or inventory problems
- Amazon evaluates you solely on your Amazon business, ignoring revenue from Shopify, eBay, your own website, or any other channel
User Reviews (29)
reliable
Good company, factor rate could be better. Got $8K for my clothing store at 1.32. Ahmed was helpful during the process.
middle of the road
Not bad not good. $20K for a slow month. It is what it is I guess.
meh
Amazon Lending is just another MCA company. $35K at 1.20. They're all the same honestly. Fast money expensive money.
regret it
waste of time
solid but not perfect
fine
straight up
Just got my second advance from them. Rate dropped from last time. Amazon Lending is solid.
regret it
not worth it
mostly positive
Amazon Lending was fine. Not amazing not terrible. $120K at 1.22. Wish the rate was lower.
worked for me
Pretty smooth process but the daily debit gets old. $20K for my medical practice. Would still recommend.
not bad
Second time using Amazon Lending. Rate improved from last time. $10K at 1.30. Not cheap but faster than a bank.
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Frequently Asked Questions
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Important Merchant Cash Advance Disclaimers
- A merchant cash advance is not a loan. It is a purchase of future receivables at a discount. Factor rates, not APRs, are used to express the cost of capital. Effective APRs on merchant cash advances can range from 40% to over 350% depending on the term and factor rate.
- Repayment is typically collected daily or weekly via automatic ACH debits or a percentage of credit card sales. This means your repayment amount fluctuates with revenue but withdrawals occur every business day, which can strain cash flow during slow periods.
- Most MCA agreements require a personal guarantee from the business owner. In the event of default, the MCA provider may pursue the owner's personal assets, including bank accounts and property.
- MCA providers commonly file UCC-1 liens against your business assets. This lien may prevent you from obtaining additional financing until the advance is fully repaid and the lien is released.
- Merchant cash advances are not regulated by federal lending laws such as the Truth in Lending Act (TILA). State regulations vary widely, and some states have limited consumer protections for MCA products.
- Stacking multiple merchant cash advances (taking a second advance before the first is repaid) significantly increases the risk of default and can lead to aggressive collection actions including confessions of judgment in some jurisdictions.
- Zogby does not provide merchant cash advances or business financing. We are an independent comparison service. We do not fund advances, process applications, or guarantee approval on your behalf.
This page is informational, not financial or legal advice. Talk to a qualified professional before making any big money decisions.
Editorial Independence
We make money from some companies on this page. That doesn't change our rankings -- the editorial team scores every product independently, and the business side has no say in what we recommend.