Amazon lending stopped offering refinance
we’ve been selling on Amazon for a little close to 10 years and we rely heavy on Amazon lending for inventory before our busy season which starts around mid February to like October November. This year we haven’t gotten any offers from Amazon lending to refinance our loan as we already bought our inventory to prepare for our busy season and our cash flow has came to a halt. Has anyone gotten any loans from Amazon directly in 2024 or a refinance?
14 replies
Quincy_Amazon
Hello @Seller_uHVP4cncJr8WO
Thank you for posting your inquiry to the Forums.
I'm not sure of the offers you have received in the past, however please feel free to visit this help page that has more information from Amazon Lending.
Looking forward to responses from other members of the community.
Regards,
Quincy_Amazon
Seller_KtTNr9ZrhSrAH
Same situation here. You aren't alone.
Seller_EuKHuAB8hefVl
This was recently in the news, Amazon is to stop offering loans and refinancing to sellers in the US and Canada
Seller_WsdULSSIajCRd
The last offer we received was in Aug 2023. They used to offer us 1.5-2M per month, and it just stopped then, even on top of our record sales. It really hurt us going into Q4. We got a clutch Amex working capital loan that was for 90 days and helped us fund our Q4 buys. But I ended up having to carry balances on personal cards, which dropped my credit score from 800+ down to 615 because of the utilization rate.
This had a cascading effect and crippled our ability to secure lines of credit despite our performance. It ruined Christmas for me as I stressed about meeting cash flow demands in Jan & Feb. Fortunately, some things worked out; we were able to move our Amazon lending payments from once per month to twice per month, and I timed the move so that it took effect and gave us an extra week of cash flows, and then loan payments would be half.
I was also able to pay off some big business credit cards right before the statement closed, which meant we could float some big balances for nearly two statements. This all helped me pay off some personal credit cards, which increased my credit score enough to get approved for 10% of what Marcus Goldman said we could qualify for. This additional 250k in LOC enabled me to get my score back up to 800, and now we're seeking some additional LOCs. But yeah, Amazon really hurt us. It could have been really bad if that combination of things hadn't worked out. The irony is that our FBA inventory value (proven collateral) had never been higher, and at the time, we were up 60% over the previous year's sales
Seller_ZWJu6SC7QqWWD
Just received an offer this evening to refinance my existing loan, they only offered a six month term which would make my payments skyrocket double. No way ! I wont be suckered into this so they can get rid of my loan quick so they can dissolve the lending department sooner. My loan matures in November and then after that I will be free of paying this back
If you all get offers, keep an eye on the term time before accepting. I almost didn't notice it PHEW !
Seller_AZPQ9actRojyX
I too am dependent on Amazon for money to buy inventory. However, they did not send me an invitation for several months and so I had to try someone else. The company I applied to wants $7800 to pay back a $1400.00 loan. They kept on emailing me to sign an agreement to take the loan. How could they look at themselves in the mirror.?! Amazon helped create me and got me into this position.
Seller_AL3NYI8RCBpLW
From what I understand "Amazon" no longer send out offers, they have turned all the loans offers to third parties lending companies.
Seller_hYyESyngjN0kA
Amazon is no longer offering lending to third party sellers. Now, you have to go through one of their partners, like SellersFi. Here's the kicker. Good luck getting anyone to loan you money with that big fat Amazon loan on your books.
Seller_Hvi3HBW45jas9
While I was happy to see that we weren't the only ones not being offered a chance to refinance, I was shocked to get the email today from Amazon saying that, "new loans underwritten by Amazon will no longer be offered." Wouldn't you know, one of the few things that Amazon got right with 3rd party sellers, they are ending? Now they want us to use 3rd party lenders, something we tried with Parafin, and it ended up being a nightmare!
