Seller Financing

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Buyer’s Guide

Many Amazon sellers struggle with the gap between selling product and receiving revenue. As businesses increasingly connect to consumers with digital marketplaces, their cash flow needs have evolved. Alongside this demand for readily available capital comes a supply of e-commerce software specializing in loan-based funding.

From lines of credit to invoice factoring: we’ve gathered key information below to help you understand more about the various forms of loan-based funding accessible to Amazon sellers.


Receive up to a $250,000 revolving line of credit for your business. Unlike personal loans where individuals pay interest on their entire credit limit, these lines of credit only require that businesses pay interest on the amount they use. Depending on the chosen service, monthly or weekly payments will be made in conjunction with the assigned interest rate. Additionally, look out for a possible second fee whenever you have an outstanding loan balance.

Invoice Factoring

Factoring is a financial transaction and a type of debtor finance in which a business sells its accounts receivable, or invoices, to a third party, or factor, at a discount. Sellers can free up the cash trapped in their invoices with software designed to advance up to 90% of their Amazon payout. The remainder will arrive in the usual timeframe. Depending on the chosen software, sellers will pay either a flat fee percentage of total sales or a wiring fee per payout.

Amazon sellers simply deliver necessary information about their business (tax identification, proof of revenue/inventory via bank statements, etc.) to see if they qualify. With paperless options and timely responses, qualified sellers can receive capital from their chosen platform in as little as 24 hours.

Still not sure what to pick?

There are services that offer both lines of credit and invoice factoring, as well as services that offer solely invoice factoring. If you are looking to get help with just invoice factoring, choosing a service that does just that might work better for you. Those particular services typically charge one low rate (Under 3%) to advance up to 90% of your account receivables. The rate comes out of the remaining balance returned on the usual schedule. There are even options to customize the exact amount of account receivables you want, rather than automatically getting the total due.

However, depending on your number of invoices versus total dollar amount you would get from your account receivables, it may be worth comparing flat rate options to a $15 wire fee.

Just looking for a line of credit, or curious about both? Check out the services that fit all your needs. If a line of credit is one of them, be sure to look out for whether or not the line of credit is “revolving”. This may be important to your business if you want access to the same amount of funds as soon as a payment is made.

As with any line of credit, the rate is determined by credit history and business performance. It may be worth applying to more than one just to get an accurate, personalized rate comparison. (Most offer that there are no commitments once approved!)