6 Key Terms of Financing for Amazon Sellers (Video)
Financing For Amazon Sellers is much more complex than traditional consumer financing which many Amazon Sellers are accustomed to. For most Amazon Sellers, their finance experience consists of credit cards, car loans, and home mortgages which are all relatively standardized financial products.
When it comes to Amazon Business Financing, the various options are diverse in many ways. It is important for an Amazon Seller to understand the different structures and components of Financing for Amazon Sellers before they commit to an Amazon Financing Solution.
In a recent video on the AccrueMe YouTube channel, AccrueMe co-founder Ben Kotch explains the 6 Key Terms of Financing for Amazon Sellers that all Amazon Sellers should consider when comparing their business financing options.
Interest Rate, Fees, and Cost of Financing for Amazon Sellers - The most focused on term but usually one of the least important
Repayment Terms - Very important and often overlooked by Amazon Sellers evaluating financing options. Errors made in understanding repayment terms can leave Amazon Sellers in a worse situation after financing than before.
Length of Financing - Important to keep Amazon Sellers from having to constantly refinance.
Restrictive Covenants - There are common restrictive provisions across all Financing for Amazon Seller alternatives and then there are some unique covenants for certain types of financings.
Amount Available - The different types of capital sources for Amazon Sellers all have different underwriting criteria which means sellers will receive different offer amounts from different sources.
Reputation/Trust - It's always important to work with a capital source with a good reputation and a strong online rating like the Top-Rated Amazon Seller Central Loans
If you prefer to read, check out this blog post: Amazon FBA Loans: What Amazon Sellers Need To Know (The Definitive Guide)
AccrueMe provides success-based capital for Ecommerce. With decades of experience in lending, AccrueMe's leaders have created a completely new way of providing capital, powered by a proprietary portal built around leading-edge eCommerce technology. With unprecedented line of sight into business data, AccrueMe’s portal simplifies financing for online retailers in a way that was never before possible: based entirely on sellers' success, and repaid when best for the seller, and not based upon a pre-determined schedule. Ecommerce retailers have built their businesses on the latest technology, we believe they deserve financing from a partner that's powered the same way. AccrueMe: cutting edge capital for eCommerce. Learn more at AccrueMe.com