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  • Writer's pictureAccrueMe Team

Amazon Seller Loans Explained

Updated: May 22, 2022

Amazon Seller Loans Explained
Amazon Seller Loans Explained

If you need cash to grow your business you've likely considered an Amazon Seller Loan. While there are a number of alternatives to Amazon Seller Loans including AccrueMe's success-based financing for Amazon Sellers, in this article we will take a deep dive into the most popular types of Amazon Seller Loans.

What Is An Amazon Seller Loan?

An Amazon Seller Loan typically refers to a term loan made to a business that sells products on Amazon. These loans are typically available through Amazon Lending. In addition to more traditional loans, there are various loans and financing options available to Amazon Sellers.

3 Types of Amazon Seller Loans

While there are various types of financing options available to Amazon Sellers, if you're looking at true loans, there are three main types of business loans Amazon sellers utilize including term loans, revenue-based loans, and SBA loans.

Amazon Seller Term Loans are loans where the borrower agrees to a certain repayment schedule with a fixed or floating interest rate. For Amazon Sellers, term loans are most commonly offered through Seller Central. These loans tend to have equal monthly payment requirements over the term of the loan which can be between 3 and 24 months with an APR of 6% to 15%.

If for example, you borrow $100k with a 6 months term and 10% APR, you will have a loan payment of $17,156.14 per month and pay $2,936.84 in interest over the 6-month term of the loan.

Revenue Based Amazon Seller Loan

Revenue Based Amazon Seller Loans are being made popular by e-commerce specialized lenders. Unlike Amazon Seller Term Loans where the payback amount and schedule are defined, Revenue Based Amazon Seller Loans are repaid based on your business's top-line revenue. Usually, these loans will automatically take 5-50% of your gross sales proceeds directly from your Amazon account each payment cycle to repay the loan balance. Rather than charging interests, these types of loans usually charge a fee equivalent to about 1% of your monthly revenue.

If for example, you have monthly Amazon Revenue of $200k and you borrow $100k with a 25% repayment, your lender will earn about $2,000 per month in fees and will automatically pull $50k of your monthly sales (25% X $200k) out of your cash flow every payment period to repay the loan.

Many US-Based Amazon Sellers consider a loan backed by the US Small Business Administration as a potential loan option for their business. While SBA loans typically have lower interest rates and longer payback periods than most other lending options, SBA Loans are usually not the most accessible or logical option for Amazon Sellers. This is because Amazon Sellers with less than 2 years of very well-documented business success will usually only qualify for small SBA loans that require a personal guarantee from the business owner.

Amazon Sellers tend to avoid SBA Loans because the SBA process usually 1. takes much longer than other Amazon Seller Loan options, 2. results in a smaller funding amount than other lenders will offer, and 3. requires underwriting/is secured by the business owners' personal assets and track record.

EIDL Amazon Sellers: During COVID, many Amazon Sellers applied for and received Economic Injury Disaster Loans (“EIDL”). In many cases, those loans were for amounts greater than the Amazon Seller needed and the funds were likely not used as required by the SBA. EIDL loans are no longer widely available.

In addition to the various Amazon Seller Loan options available, there are also a number of alternative financing options available to Amazon FBA Sellers including;

  1. AccrueMe Amazon Seller Funding - The only 100% success-based investment partner for Amazon FBA Sellers.

  2. Personal Line of Credit For Amazon Sellers - Personal loans or credit cards.

  3. Business Line of Credit For Amazon Sellers - Business Credit Cards or more traditional lines of credit.

  4. Factoring For Amazon Sellers - Selling your Amazon Receivable Balance to a 3rd party who will advance your payment the next day.


To learn about AccrueMe's success-based funding solution for Amazon Sellers, please visit


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