Amazon launches flexible financing for SMEs

Amazon has launched a flexible financing programme that gives small and medium-sized 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, which provides greater cash flow flexibility in addition to the fixed-term business loans already offered by Amazon Lending. The new revenue-based financing model means that merchants can grow their businesses and build-out inventory, secure new equipment or ramp-up their marketing with the assurance of transparent and capped rates as well as repayment based on current sales. The product is simple to apply for and accessible within days and does not have fixed terms or late fees. Businesses can apply for funding from £500 up to £2m, depending on affordability through their existing Amazon UK business accounts without completing any lengthy paperwork. 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. Samarth Gogia, GM B2B payments and lending, said: “We’ve heard from Amazon sellers in the UK how much they value fast, flexible, and accessible funding, which is why we’re excited to announce a merchant cash advance that expands our range of funding options for Amazon sellers. In collaboration with YouLend, this new option will allow sellers to increase their cash flow with confidence, allowing them to make repayments based on how their business is performing.” Jakob Pethick, chief commercial officer of YouLend, added: “Supporting businesses is core to YouLend's mission. That’s why we are pleased to partner with Amazon to support the growth of their sellers by providing fast, flexible, and affordable financing. Amazon sellers will now be able to access revenue-based financing from YouLend to thrive and grow.”