Amazon financing

Amazon Financing: Capital for Marketplace Sellers

The Amazon marketplace has grown significantly, giving businesses a chance to reach a much larger audience than they might have ever been able to in the past. With more than 200 million paid Prime members worldwide, today’s customers are finding what they need on Amazon and utilizing fast shipping to save time.

You might be considering expanding your business on the Amazon marketplace. Learn how you can grow your eCommerce business with Amazon financing.

Two Ways to Sell on Amazon

Most businesses selling on Amazon use one of two methods. The first is fulfilled by Amazon (FBA). You ship your products to Amazon’s warehouse, and once a product is sold, then Amazon steps in and ships the product to your customers. As part of this business model, your budget must reflect your monthly service and inventory storage fees.

Another benefit of using FBA is that Amazon handles all the customer support. If you don’t want to worry about shipping or storing inventory and are willing to hand over the customer service reins, then FBA might be the right fit for your business.

The other option is fulfilled by the merchant, which means you are in charge of shipping and storing your inventory. You also handle all the customer service. Your business has a monthly fee but won’t incur the costs associated with storage in an Amazon warehouse. The result is that you can keep your costs down, especially if your products are bulky and tend to sit on the shelf for longer periods prior to being sold.

Clearly, your financing needs for each model will differ, as one requires you to consider storage outside of the Amazon warehouse system. In contrast, the other requires that you consistently have inventory shipped to Amazon and available for them to ship to customers. With that in mind, let’s talk about financing and how it works.

Financing to Fit Your Needs

The goal of Amazon financing is that it can be used to plan for the next phase of your Amazon business and its growth. The line of credit, for instance, can be used to purchase additional inventory for your business, thus allowing you to expand your offerings on the platform.

If you link your Amazon seller account, you can be approved for an even higher amount and a lower interest rate. If you opt not to link your Amazon account, your personal credit will play a role in determining the amount available on your line of credit.

That line of credit allows you to bring in the inventory to meet your customers’ needs and keep them engaging with your eCommerce business. Your line of credit can also help even out your cash flow from one month to the next.

When you are looking for a line of credit, you need to keep in mind that you want flexibility. After all, you don’t want to pay interest for money your business doesn’t need. Instead, you want to be able to use what your business requires right now, thus making a budget that reflects the current status of your business.

At Penn Commercial Capital, we focus on creating a line of credit that fits the needs of your unique business model. We also offer access to working capital and purchase order financing. We aim to help support your business and provide the capital for sustainable expansion. To learn more about our financing options, contact us today!

Penn Commercial Capital can help you secure your next round of financing or business loan efficiently and ethically. We’re proud to champion the small businessperson and can finance clients seeking loans from as little as $100,000 up to $100 million.

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