Amazon Lending

[chowiekid]

Has anyone used this yet?


Amazon seem to be offering very competitive loans, just wondered if its to good to be true?

We have been offered a fairly large sum and all i can see its going to cost is 2.73% total cost

Its paid back from your sales on a monthly basis and will appear in my account within hours of applying… all seems to good to be true :s

Anyone tried it?

[ModernAndy]

Same idea as paypal working capital really and that is probably one of the best ways of doing working capital at the moment.

[Wacky Racer]

chowiekid said:

Has anyone used this yet?


Amazon seem to be offering very competitive loans, just wondered if its to good to be true?

We have been offered a fairly large sum and all i can see its going to cost is 2.73% total cost

Its paid back from your sales on a monthly basis and will appear in my account within hours of applying… all seems to good to be true :s

Anyone tried it?

Is that 2.73 flat or APR?

[russy01]

Do you want Amazon making your dinner and sleeping with your Mrs too?

We dont use FBA, dont rely on Amazon for all our business and also dont need to borrow at the moment. BUT, I see some of these companies who are FBA, Amazon obviously sit on their money for 2 weeks and then they are going to borrow money off them too? Now I might be in the minority, but come on surely you dont want all your eggs in one basket?

Amazon showed their true colours to us last year and since then we tread with caution. We were attacked by competitors buying lots of stock who then claimed the items were counterfeit. Amazon removed our offers and reached out asking for clarification that our items are genuine - we supplied 10years of detailed trading history with the manufacturer including invoices for 90days of stock - Amazon switched our offers back on. About 3 days later the same happened again and Amazon put our account offline again, however this time they put holds on all our funds (£200k) pending further investigation. Amazon requested the same information again, we supplied and they claimed it wasn't good enough and told us they'd investiate further...

Anyway after a few quiet weeks later they agreed we were legit and they put our account back on 1day after our disbursement day. So in the end we lost a few weeks sales and they sat on >£200k of our cash for weeks....

So, if you are fully invested in Amazon, please consider that they could:

- Have all your stock
- Have all your money on hold
- Stop all your sales
- Have you up against the wall for whatever you borrowed

Its not a position Id want to risk being in.

[DSLiverpool]

russy01 said:

So, if you are fully invested in Amazon, please consider that they could:

- Have all your stock
- Have all your money on hold
- Stop all your sales
- Have you up against the wall for whatever you borrowed

Its not a position Id want to risk being in.

1. # Sorry for off topic ####

Please can anyone getting into bed with Amazon or eBay take this on board, Russ could absorb this unexpected speed bump but for many it would put them under,

AMAZON & EBAY are the icing on the cake they are NOT THE CAKE!

Accounts are being merged you can no longer have separate accounts selling the same thing (insurance) on either platform, they are asking you to merge.

I am putting a lot of pre effort into a business model that doesn't need Amazon, Google or eBay as the main revenue stream.

[seaninog]

2.73% doesn't sound right. Last time I checked Amazon it was MUCH more expensive. Paypal is even worse. There are much cheaper options out there.

[Burwood]

If amazon will lend you money at 2.73. Just think about it. Their own borrowing is higher than that. Minimum it will be riddled with fees and 12 plus.

[POORCARDEALER]

DSLiverpool said:

russy01 said:

So, if you are fully invested in Amazon, please consider that they could:

- Have all your stock
- Have all your money on hold
- Stop all your sales
- Have you up against the wall for whatever you borrowed

Its not a position Id want to risk being in.

1. # Sorry for off topic ####

Please can anyone getting into bed with Amazon or eBay take this on board, Russ could absorb this unexpected speed bump but for many it would put them under,

AMAZON & EBAY are the icing on the cake they are NOT THE CAKE!

Accounts are being merged you can no longer have separate accounts selling the same thing (insurance) on either platform, they are asking you to merge.

I am putting a lot of pre effort into a business model that doesn't need Amazon, Google or eBay as the main revenue stream.

Wise words.

[Vaud]

Burwood said:

If amazon will lend you money at 2.73. Just think about it. Their own borrowing is higher than that. Minimum it will be riddled with fees and 12 plus.

Amazon have 14+BN in cash, much of it offshore from the US that they can't repatriate without punitive tax bills.

Quite a good idea to lend to a locked in customer who drives you further business.

And Amazon will be paying less than 2.73%; this is a US company that people queue up to lend to?

[Burwood]

Vaud said:

Burwood said:

If amazon will lend you money at 2.73. Just think about it. Their own borrowing is higher than that. Minimum it will be riddled with fees and 12 plus.

Amazon have 14+BN in cash, much of it offshore from the US that they can't repatriate without punitive tax bills.

Quite a good idea to lend to a locked in customer who drives you further business.

And Amazon will be paying less than 2.73%; this is a US company that people queue up to lend to?

I see your point vaud but simply put, if you look at their financial they have 8B in LT debt. Taking a very crude average over two years and looking at their interest expense they are paying about 4%. There bond offerings over the past 5 years have ranged 3 to 4.95%.

[LooneyTunes]

Burwood said:

I see your point vaud but simply put, if you look at their financial they have 8B in LT debt. Taking a very crude average over two years and looking at their interest expense they are paying about 4%. There bond offerings over the past 5 years have ranged 3 to 4.95%.

That sort of estimation approach only works if you think they're using long term debt to fund this sort of thing... the chances of any company using 30 year paper to fund supplier fiance scheme is virtually nil, especially when there are much neater options out there.