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  • Writer's pictureAccrueMe Team

Fixed Payment vs. Interest Rates for Amazon Seller Loans

Fixed Payment vs. Interest Rates for Amazon Seller Loans
Fixed Payment vs. Interest Rates for Amazon Seller Loans

Have you ever seen an Amazon Seller Loan advertised as "Borrow $100k, Pay Back $110k" and thought that a 10% APR Amazon Seller Loan is being advertised?

Amazon Sellers often fall into the trap of not understanding the true cost of financing. For example, when Amazon Seller Loan companies say "borrow $100k and pay back $110k" they fail to mention how quickly the investment will need to be repaid.

Most of these types of Amazon Seller loans are actually not loans at all. Instead, they are more sophisticated financing structures like Amazon receivable factoring or Amazon revenue purchase agreements that Amazon Sellers often confuse for traditional loans.

Continuing with the example above, the Amazon Seller borrowing $100k and repaying $110k is usually required to repay the investment over about 90 days which means they are paying $10k to borrow $100k over a 90-day period.

If the Seller attempts to use this type of financing to borrow $100k over a 1-year period by refinancing every 90 days, the seller is actually paying $10k every 90 days to borrow $100k which is $40k over a year. When put in terms of APR, that's nearly 40% (not to mention the impacts this sort of short-term financing has on Amazon Sellers' cash flow)!

Investing in Amazon Selling businesses carries more risk and expense than many traditional businesses for various reasons. To compensate for this risk, eCommerce investors look for ways to increase their returns and decrease risk which often results in fast repayment requirements and high effective rates.

In many cases, these higher costs are justifiable for a fast-growing and profitable Amazon Seller. Unfortunately, most Amazon Sellers end up with unexpected costs because they don't fully understand the true cost of financing for Amazon Sellers.

AccrueMe was created to provide Amazon Sellers with the funding they need to grow using a simple and transparent profit share model. Simply put, AccrueMe only makes money when the sellers AccrueMe invests in do. That is why when educated Amazon Sellers compare the true costs of the different financing options for Amazon Sellers, they often choose to work with AccrueMe for their funding needs.


About AccrueMe®

AccrueMe provides success-based financing for Amazon Sellers. 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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