Small Business Loans for Amazon Sellers

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Amazon Seller Financing

How to Get Amazon Seller Financing for Small Business

Amazon isn’t just an online retailer - Amazon Marketplace means that Amazon is now a global marketplace where small businesses sell directly to millions of customers. Currently, around 50% of all items sold on Amazon are sold by marketplace sellers, and it can be a lucrative business if you manage your supply and pinpoint products and trends customers are looking for.

That said, it takes capital to develop new products, white label existing products, and get them shipped to FBA centers, so you may find yourself in need of a small business loan.

Applying for Amazon seller financing is fast and easy:

Fill out a simple and fast online application in just minutes

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Receive funds from $5K - $1,000,000+ towards your business needs

Absolutely no negative impact on your credit score, ever.

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What is a small business loan?

The “small” in small business loan refers to the size of the company rather than the amount of money being borrowed. A small business loan is simply a loan designed to suit the needs of small businesses like yours.

How does a small business loan for Amazon sellers work?

There are a few different types of small business loans available for Amazon sellers, each with their own process and repayment terms. That said, most small business loans work by the lender allowing them to borrow a lump sum which they then pay back (plus interest) over a term of months or years.

What are the different types of small business loans for Amazon sellers?

  • Small Business Line of Credit: This is similar to a credit card and lets you borrow up to your credit limit and only pay interest on the money you borrow. Those who take out a small business line of credit can draw funds and pay them back as often as they want, provided they don't exceed their credit limit. This can be a particularly flexible and desirable form of funding for Amazon sellers.
  • Working Capital Loans: This type of loan is used to finance everyday business operations, so it differs from some small business loans that cover investments or long-term assets. A working capital loan can pay for things like payroll, rent, and debt repayments. Working capital loans generally come with lower amounts and shorter terms than other small business loans. The only major downside is that working capital loans usually require a personal guarantee, which will make you liable for the loan if your business fails.
  • Small Business Term Loans: This is the traditional form of loan where you receive a lump sum that you repay monthly at a fixed interest rate. Small business term loans are generally repaid in 5 years (though can be more or less) and are intended to pay for a specific investment.
  • Inventory Financing: This is where you borrow a fixed amount to buy inventory, and then the inventory you purchase acts as collateral for the loan. These loans are usually designed to be short-term, paid back when you sell your inventory. This can be a good option for Amazon sellers looking purely to purchase more inventory.
  • Crowdfunding: If you’re raising capital to produce a new product your customers are waiting for, crowdfunding can be a great way to raise funds without looking for a loan. Provided you fulfill your promises to your customers, you won’t have to pay back any money.

Why do Amazon sellers use small business loans?

Here are some of the situations in which a small business loan is beneficial to an Amazon seller:

  • To raise capital for their next purchase of inventory before their current supply runs out
  • To pay for advertising or put more money into a campaign that is getting good results
  • To help a physical store take the necessary steps to also sell on Amazon
  • To develop a new product that is exclusive to their brand
  • To pay for white labeling

What are the pros and cons of getting a small business loan as an Amazon seller?


  • It allows you to build momentum when your products or listings prove successful
  • You can invest more in successful marketing campaigns or try a new avenue
  • You can pay for product development so you can stand out in a crowded market
  • You can take advantage of opportunities as they arise


  • Trends come and go so you may find yourself having paid for something that’s no longer selling
  • If you’re sourcing your products abroad, a small business loan may not be enough to keep enough inventory to meet demand
  • It can be easy to make mistakes in the early years of an Amazon business and you may find yourself in debt before you’ve really gotten started
  • Amazon is in control, so if you were to lose your merchant account you may find your income has disappeared and you’ll have to cover the loan until you can build up your own store

Need help finding the right loan?

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How to qualify for a small business loan

The exact requirements vary depending on the type of loan you’re applying for and the individual lender’s requirements, but to have the best chance of being approved you’ll need:

  • A personal credit score of 680 or higher
  • Annual revenue of $50,000 (some lenders require a minimum of $100,000)
  • A strong business plan that includes an explanation of how you plan to use the funds - if you don’t know how best to prepare a business plan, work with a professional business plan writer as they’ll help you put your best foot forward
  • To have been in business for 2 years or more (though this does vary depending on lender and what you’re applying for)

Can a new Amazon seller get a small business loan?

You’ll struggle to get a loan of any kind if you don’t have proven business history, and lenders will know that it’s difficult to get your business found on Amazon without a strong strategy. If you have a new product you want to bring to the marketplace, look into crowdfunding, peer-to-peer lending, and angel investors to see if you can find support.

What documents will I need to get approved for a small business loan?

Again, what lenders want to see can differ somewhat, but in general you’ll need to have the following documents available:

  • Your ID
  • Business license
  • Your business plan
  • Profit and loss statement
  • Bank statements
  • Tax returns (both personal and business are often required)

Will I need to put down a down payment for my small business loan as an Amazon seller?

Some forms of small business loan will require you to put down anywhere from 5% to 20% to secure the loan. This is most common for SBA loans, inventory financing, and equipment financing.

How to get a small business loan for Amazon sellers

Once you’ve decided to get a small business loan and are relatively certain you’ll be approved for the type of financing you’re going to apply for, the process is easy. Simply compare small business loans here to find the loan with the lowest interest rate that suits your needs and circumstances.

Once you’ve found the loan you want, all that’s left to do is apply.

Compare rates and apply

It’s important to know your options and weigh them all up. Make careful decisions and don’t jump into anything without thinking it through. Start your search here and once you’ve found the right loan, click apply. Most online lenders have fast and easy online applications and once approved, you’ll usually receive your funds in less than 14 days.

Start your search now and get the funding you need to grow your Amazon seller business.

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