Amazon has launched a flexible financing programme that gives businesses access to funding linked to their sales, allowing them to repay as they earn.
A merchant cash advance, delivered in collaboration with leading financing provider YouLend, will provide a new flexible financing option for eligible UK-based businesses selling on Amazon.co.uk, which provides greater cash flow flexibility in addition to the fixed-term business loans already offered by Amazon Lending.
YouLend will offer funding from £500 up to £2 million, depending on affordability through their existing Amazon UK business accounts. Once accepted, sellers pay a single fixed fee with repayments tied to a percentage of their future sales on Amazon. Repayment is only required when sellers make sales, protecting them during quieter periods.
More than 100,000 UK small and medium enterprises (SMEs) and brands sell on Amazon.
Raymond Pucci, Research Director of Worldwide Consumer and Small Business Lending at International Data Corp (IDC) said: “Most traditional bank lenders have tightened their commercial loan standards, making it more difficult for small businesses to obtain working capital that is absolutely critical for them to operate successfully.
“The new Amazon and YouLend merchant cash advance program provides small and medium businesses with an alternative means of credit that is fast, convenient, and flexible. This new funding source will be valuable for a wide range of businesses, especially startups and those that do not qualify for a standard term loan.”
Businesses require a minimum of three months’ trading history on Amazon before they are eligible to apply.