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  • Writer's pictureAccrueMe Team

Amazon Seller Loan - Length of Amazon FBA Loans Explained

Amazon Seller Loan vs AccrueMe
AccrueMe Vs 12-Month Term Loan

When looking at financing for an Amazon FBA Business, many Amazon Sellers focus on the interest rate of the loan but most don't consider the repayment terms of the loan. The length or term of an Amazon Seller Loan is very important because it will dictate how often you need to refinance or how quickly you need to repay your FBA loan.

Many Amazon Sellers ignore the term of the FBA loans they are considering because they think the length of the loan will be relatively unimportant and long-term (usually sellers think in terms of typical consumer loans like a multi-year car loan or a 30-year mortgage).

But, most Amazon FBA loans are very short-term because the lenders are making the loans based on relatively little business history and collateral. To decrease the risk for FBA lenders, nearly all FBA loans are designed to be repaid within 1 year and most in much shorter 3-6 months periods. These fast repayments periods are what result in very high monthly payments and the need for sellers to constantly refinance their loans to maintain cash flow.

For example, a 6-month $100,000 term loan requires monthly payments of nearly $17,000.

While the difference between a 5% interest rate and a 20% interest rate is only a difference of $7,500 over a 6-month loan, the difference between a 3-month ($33k per month payment) and 24-month term loan ($4.5k per month payment) is a difference of $25k+ in monthly payments which can have a huge impact on an Amazon Selling business.

In the table below you can see how for the exact same loan amount and interest rate, your monthly payment can range from $4k per month to $33k per month simply based on the length of the loan. While the monthly payback has a huge impact on cash flow, most Amazon Sellers ignore it when shopping for loans.

Amazon Loan Repayment Term ($100k Loan)

Estimated Monthly Payment

Repaid Over 3 Months

$33,000 per month

Repaid Over 6 Months

$16,500 per month

Repaid Over 9 Months

$11,000 per month

Repaid Over 12 Months

$8,000 per month

Repaid Over 24 Months

$4,000 per month

So, while many Amazon Sellers are looking for Amazon Seller Loans to help them improve their cash flow, they often focus on interest rate rather than the repayment rate which will have a much greater impact on their business operations and cash flow.

This is why AccrueMe® created payment-free funding for Amazon FBA Sellers. Many AccrueMe portfolio companies don't make a single payment to AccrueMe for months (or even years) which allows them to reinvest all of their cash flow in growth.

About AccrueMe®

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

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