May 3, 2023
min read
Written by: 
Nikolaus Hilgenfeldt

4 Best Amazon Financing Options (Zero Investment Solutions Included)

Amazon is booming in today's fast-paced ecommerce industry, attracting more vendors and shoppers daily. 

However, to compete and build your business, you may need sufficient finance to take it to the next level.

But, acquiring access to financing might take a lot of work for Amazon sellers.

Traditional financial institutions, like banks, are typically hesitant to lend money to online businesses that lack tangible collateral, making it difficult to qualify for a loan.

Moreover, they rarely provide small loans, so if you have low-value products and modest inventory, you are frequently shut out of the lending market.

On the other hand, waiting too long for additional capital can prevent you from taking advantage of fantastic product bargains and prospective growth opportunities.

Fortunately, many funding options exist to expand your operations without going into debt.

This blog post will explore the 4 best Amazon financing options for any business.

Let's start!

4 Best Amazon Financing Options to Consider

Let’s say you're thinking about borrowing money for your business. In that case, having a clear idea of your goals and which financing option will best suit your needs is crucial.

Start by asking yourself what funds you need and how they will contribute to your business's growth.

For example, do you need to increase your inventory for the holiday season or take advantage of bulk purchase deals?

Or, do you want to advertise on social media channels to promote your products?

Once you understand your goals, you must review your business finances and cash flow to determine how much you can afford to borrow and how quickly you can repay the loan.

Let's start with Amazon financing options, and after that, we'll review some alternatives.

1. Amazon Lending – Best for Amazon-Centered Sellers

Amazon Lending provides seller funding through the following programs for sellers in the UK, USA, and Canada.

1. Working Capital for Amazon Sellers

Several specialist financiers provide working money exclusively for Amazon merchants in the United Kingdom, the United States, and Canada.

To apply, you must typically have at least 6 months of trading experience and monthly sales of at least $10,000.


  • Credit limit of up to $5,000,000.
  • Flexible withdrawal options are available.
  • Terms include an interest-only option for up to four months.
  • Terms are up to 24 months.

2. Daily Advance

Access to the previous day's sales the day after they occur is one way to generate additional capital for your Amazon business.

A "Daily Advance" will potentially reimburse 90% of your previous day's sales into your business account on the same day.

It frees up cash flow and prevents you from having to wait up to 14 days for payment.


  • Advance rates of up to 90% are possible.
  • Quick Approval
  • Available in USD, CAD, GBP, and EUR for US, Canadian, and UK businesses

3. Unsecured Business Loan for Amazon FBA Sellers

You may be eligible for an unsecured business loan if you have run your Amazon store for over 2 years.

This alternative often requires the directors to have a respectable personal credit score and, ideally, at least one homeowner.


  • Terms 1 - 6 years
  • Fixed monthly repayment
  • Rates from 5%+ PA. 
  • Loan amounts ranging from £5000 to £5,000,000

Loans without collateral are a good option for established companies selling on the Amazon marketplace. Still, you may need to provide a personal guarantee from the director. 

Your company should be profitable, with a healthy balance sheet and sufficient cash flow to cover the monthly payments.

4. Secured Amazon Seller Business Loan

Securing a business loan may be possible if you have something of value, like real estate, to put up as collateral.

Assuming adequate equity in the property, you may not need to stipulate a minimum trading time for your Amazon store.

For example, it could be your primary dwelling, a rental or investment property, or a business property with adequate equity.

If you fail to repay the required business loan, your property may be at risk.

5. Amazon FBA Merchant Cash Advance

Amazon provides cash to help sellers build their businesses, and they repay the advance with future purchases. 

The minimum amount of time a business needs to be open before applying for a merchant cash loan is 4 months for Amazon FBA sellers.

You can borrow up to 200% of your typical monthly sales figures and have higher approval rates than unsecured business loans.


  • There are no fixed payments.
  • Payback percentage (10-20%) of future Amazon payments
  • Bad credit is taken into account.
  • Homeownership is not necessary.

How Does Amazon Lending Work?

To apply for these programs, you must first get an offer from Amazon since they are invitation-only. 

Amazon assesses seller accounts regularly and invites merchants with a proven track record of selling on Amazon Stores and providing excellent customer satisfaction to apply for a loan.

If you qualify, Amazon Lending will notify you through Amazon Seller Central.

However, one significant disadvantage of Amazon Lending is that your money is only available to Amazon.

You'll have to search elsewhere if you need money to expand your online store beyond the marketplace.

Top Amazon Financing Options Alternatives

1. Online Financial Lenders – Best for Quick Funding

Today, conducting business online has become the norm.

However, traditional funding sources, such as banks and credit unions, may not always be equipped to provide the necessary financial support for online businesses.

Fortunately, online lenders have emerged as a viable alternative. 

One of the critical advantages of online lenders is the speed at which they operate.

They offer lightning-fast approval and funding, allowing online retailers to seize opportunities quickly.

It is imperative in a highly competitive market where timing is everything.

Asset-based financing

Asset-based loans provide money based on the worth of your company's working capital assets, such as inventory or accounts receivable. Repayment occurs in conjunction with the sale of products, utilizing funds obtained from your consumers. 

ABLs are an appealing alternative for quickly growing businesses because they allow you to optimize cash flow, and their flexible structure adapts to swings in working capital.

There are several types of asset-based loans, including:

  • Inventory financing
  • Accounts receivable financing
  • Equipment financing
  • Real estate financing

Revenue-based financing

On the other hand, businesses that opt for revenue-based financing can obtain a loan equal to a multiple of their monthly income. Then, over time, you repay the loan using a proportion of your monthly revenue.

Revenue-based financing is an alternative to equity financing that can provide a working capital cushion to businesses experiencing continuous, predictable growth or a spike in revenue.

Pro Tip: How Can Myos Help Your Amazon Business?

Myos financing can provide various benefits as a financing solution. An ecommerce loan is intended to give you the funding to scale your business, purchase inventory, cover transportation and shipping costs, or ramp up your marketing when necessary.

It is designed to meet an online business's needs, with payback terms based on inventory movement rather than strict terms that have little to do with your brand's actual performance. 

With asset-based financing, you can get a loan without annuities and a flexible repayment whenever you need to release a new portion of secured goods.

Depending on your specific needs, you can choose between two options:

1. Purchase financing allows you to finance your future orders with your manufacturer, where we take care of the deposit and balance payments for you.

2. Stock financing uses your existing inventory as collateral to fuel your store's growth. Use extra capital and invest in any expansion strategy you choose, such as marketing or new product launches.

💡 Myos does not rely on your credit history. 

Instead, Myos takes advantage of publicly available information about your store, such as the number of products sold and their prices, to predict the products' future performance.

Based on your score, we'll determine how much of a loan we can make to your retail establishment.

💡 There is no need for personal guarantees, such as a house or a car.

The loan is instead based on the value of your inventory. Through an agreement with your warehouse, we protect a portion of your current and future stock, keeping your private assets distinct from business operations.

2. Business Credit Cards – Best for Low Startup Capital

A business credit card is the most convenient short-term financing alternative.

They are available and straightforward to apply for, frequently taking only a few minutes using online application forms. In addition, these cards are versatile, allowing you to use credit to pay vendors and partners.

Business credit cards can provide numerous benefits as a financing alternative for Amazon sellers.

Credit cards are ideal for everyday purchases such as office supplies and incidentals.

However, when used for inventory, they do not always match your cash conversion cycle, which usually is 90-120 days.

If the bank expects repayment every 30 days, you can see how quickly you can go into debt. 

Costs and Fees

Banks can also charge interest if you don't pay the balance in full each month, which means they might cost significantly more in the long run.

You may also need to pay late fees and other penalties, which raise the cost far beyond the interest rate alone. 

Due to credit limits, you may only be able to use one card for some of your purchases. It also requires many credit card applications, affecting your credit rating.

If sales aren't coordinated with payment cycles, managing several cards increases the possibility of missing payments and cash shortages when minimum payments are necessary.

Is This The Best Choice For You?

If you are just starting, you probably need access to capital for inventory purchases.

As you most likely don't have much in the way of startup capital or a track record in business, applying for a credit card may be your best bet.

While there are enticing aspects to financing Amazon purchases with a credit card, you must think carefully about several factors first. 

✔️ Using a credit card to pay for Amazon purchases is beneficial primarily because it is easy.

 In addition, credit cards allow clients to receive things swiftly and securely without waiting for funds from other sources like bank transfers or checks. 

✔️ Some credit cards come with bonuses that you may use for future purchases. For example, they give reward points for select business categories or categories where your business spends the most.

Credit cards have two significant drawbacks: 

❌ Carrying a balance is extremely expensive

❌ You're limited in the amount of stock you may buy by your available credit.

3. Small Business Loans – Best for Big Business Investments

When making a sizable purchase, loans' flexibility and lower interest rates can be invaluable to a business. 

If you wish to grow your ecommerce business outside the confines of Amazon, they could be a viable option for Amazon seller financing.

You can get a small business loan from a conventional lender, like a bank, credit union, or online lender, and use the money to expand or improve your business.

It's important to remember, too, that these are long-term loans (often lasting a year or more) for substantial investments.

You will keep making loan payments well over the 120-day threshold if you borrow money to buy goods that will sell in 90-120 days.

Is This The Best Choice For You?

Even if you aren't making enough money from product sales to cover your loan payments, you still have to make them to afford to buy the next batch of inventory. 

These loans may have cheaper interest rates than credit cards, but their approval process is more involved and time-consuming. Finding out whether or not you have been approved for a bank loan can take several weeks. 

Loans require monthly payments and do not take into account sell-through or income. 

Before you take out a loan, remember that loan terms may seem manageable when business is good, but the ecommerce market is notoriously unstable.

So ensure you find the right small business loan tailored to the needs of your business.

Wrapping It Up

You might feel overwhelmed by the many available Amazon financing options.

Still, funding is crucial in launching and expanding a prosperous online business. 

So, your progress toward specific goals, such as inventory size, estimated annual sales volume/revenue, etc, will determine the type of loan that best meets your needs.

The interest rate and loan amount both depend on this factor.

While taking out a loan of any kind is not without its share of risks, being well-informed about the factors we've listed above can help minimize some of those and make it easier to pay back the money you borrow.

So, if you need a quick, secure, and, most of all, a loan that is specifically designed for ecommerce sellers, Myos is the right choice.

We provide funding to the following businesses:

  • Your company has a registered office in Germany, Austria, Cyprus, or the United Kingdom (UK).
  • Your company has been in business for at least 6 months.
  • Your company has been selling goods for at least 50 days.

With the proper preparation and guidance, you can secure the financing you need to grow your business and achieve your goals.

So take the first step today and start exploring your business loan options!


What is Amazon Lending?

Amazon Lending is a program that offers loans to eligible Amazon sellers. You can use these loans for inventory purchases, marketing, and other business expenses. The loan terms and interest rates vary based on the seller's business performance.

What Are the Eligibility Criteria for Amazon Lending?

The eligibility criteria vary depending on the financing option. Amazon Lending requires sellers to have a Professional selling account, a good selling history, and meet specific performance criteria. To apply for Amazon Lending, eligible sellers will receive an invitation to apply through their Amazon seller account.

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