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Amazon Lending Providing Loans to Its Merchants

Many analyst and experts believe that e-commerce is the future. Export.gov defines e-commerce as “the online transaction of business, featuring linked computer systems of the vendor, host, and buyer. Electronic transactions involve the transfer of ownership or rights to use a good or service. Most people are familiar with business-to-consumer electronic business (B2C). Common illustrations include Amazon.com, llbean.com, CompUSA.com, travelocity.com, and hotels.com.”

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For entrepreneurs and business owners that are just getting started, an option instead of creating their own e-commerce platform is to use Amazon to sell their products and services to customers. For more established companies that are using Amazon as an e-commerce solution, the Seattle-based company is launching Amazon Lending which will provide loans to merchants. Run by an Amazon subsidiary–Amazon Capital Services–the company has already begun directly contacting companies and offering up to $800,000 in credit.

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What Does This Mean for Entrepreneurs & Business Owners?

While every seller will not be qualified and Amazon Lending is certainly not a one-size fits all solution, entrepreneurs and business owners who are working with razor-thin-margins and have a good reputation on the site might be contacted for one of these such credits. This could be a great opportunity for merchants to raise additional capital to sustain and support their businesses. Reports explain that business owners have been offered interest rates as much as 13% and for business owners that have not been able to get funding from a bank this might be the only option.

About Gresham Harkless Jr.

Profile photo of Gresham Harkless Jr.
Gresham Harkless is a Media Consultant for Blue 16 Media and the Blogger-in-Chief for CEO Blog Nation. CEO Blog Nation is a community of blogs for entrepreneurs and business owners. Started in much the same way as most small businesses, CEO Blog Nation captures the essence of entrepreneurship by allowing entrepreneurs and business owners to have a voice. CEO Blog Nation provides news, information, events and even startup business tips for entrepreneurs, startups and business owners to succeed.

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