Amazon sellers can qualify for financing or loans that can be used to purchase inventory. The ability to purchase more inventory can improve selection for customers and increase revenue. Amazon sellers that use inventory financing can benefit in many ways while growing their company faster. Financing inventory may also help sellers improve cash flow. Whether you are a new seller or well-established seller you should qualify for inventory financing. The first step to securing inventory financing is to learn about the various options available. Below we have provided easy-to-understand descriptions about different Amazon seller inventory financing options. Keep reading to explore valuable information you’ll need to know before applying for Amazon seller inventory financing.
How does Inventory Financing benefit Amazon sellers?
Financing inventory can benefit Amazon sellers while giving them a competitive edge. Inventory can be expensive to purchase and hold causing cash flow challenges. Financing inventory can improve cash flow and allow sellers to offer more products. Most Amazon sellers have inventory that will be stored in a warehouse for a while before being sold or delivered to customers. In addition, most suppliers want payment for inventory purchased at the time it’s ordered. This means it can be costly to purchase and store Amazon inventory. Sellers that use inventory financing may be able to order inventory in larger quantities at lower prices. Here are a few benefits of financing inventory. . .
– Increased revenue
– Improved selection for customers
– Faster response to fill orders
– More working capital
– Expand business faster
What are the types of inventory financing options available for Amazon Sellers?
Amazon sellers can take advantage of a variety of inventory financing options. It’s important to explore various options and make an educated decision. While it may be overwhelming as you navigate through various options, enjoy the process. As your business grows you may want to use a variety of financing options or change your primary source of financing down the road. The better you understand financing options, the better business decisions you can make. Let’s compare different types of inventory financing available for Amazon sellers.
#1. Traditional Business Loans
While Amazon businesses can use traditional loans offered by banks and credit unions, they may be hard to qualify for with time consuming processes. The low advertised interest rates can be attractive but small businesses typically have low approval rates. If you are an established Amazon business or seller you may be able to qualify for a traditional business loan. In addition, if your business has other sources of income you may qualify for a traditional business loan. On Amazon, prices can fluctuate often and quickly. Finding a lender with a fast approval process and fast funding times can help your business take advantage of valuable opportunities.
#2. Credit Cards
Credit cards can be a resourceful financing option for new sellers. However, as your business expands you may need higher loan amounts. The other challenge that comes along with credit cards are higher interest rates. If you are going to use a credit card to finance inventory you should look for a credit card that offers a promotional 0% period. If you can purchase and pay off inventory within the promotional period this could be a smart financing option for new sellers.
#3. Using Your Own Personal Savings
Using your own savings or cash is the fastest and cheapest way to purchase inventory. However, before using your savings you should consider the possibility of running out of cash or encountering an emergency situation. Paying cash can be a safe option but there are some risks and limitations. While the interest-free and hassle-free option of using cash may be enticing, you may not have enough cash to finance all the inventory you need. In addition, you may sell inventory faster than expected and not have the cash to replace it fast enough. This can cause you to miss out on a peak window of opportunity.
#4. Amazon Lending Program
Qualified marketplace sellers can take advantage of the Amazon Lending Program. However, funding times can be slow and approval rates are low. Once you are approved for an Amazon loan the offer should appear in your dashboard as a one-time offer. In order to apply for the Amazon Lending Program, your business must be eligible. To find out if your business is eligible you can log into seller central and look for a message from Amazon Lending. Amazon can collect interest charges and loan payments directly from your earnings.
#5. Personal loans
Personal loans may be suitable as a temporary inventory financing solution. If you are a new seller or have credit challenges you may want to consider a personal loan. Personal loans can be easier to qualify for than other options. When you are approved for a personal loan funds are typically issued as a lump sum with no spending restrictions. The downside to personal loans is they may have higher interest rates than Kickfurther, Amazon Lending Program, or other options. Most banks, credit unions, and online lenders offer personal loans.
Kickfurther can help new and well-established Amazon sellers secure inventory financing easily. Kickfurther innovates a unique approach to crowdfunding that allows retailers to give people the chance to buy inventory on consignment. The retailer provides supporters with an estimated timeframe for repayment and specified rate. Retailers can set a repayment schedule between 2-10 months depending on their expected cash flow. Supporters are repaid in full plus dividends. If you are an Amazon seller that wants to use Kickfurther you should have $150,000 or more in sales. Kickfurther can help sellers receive inventory loans between $50,000 to $500,000 as fast as 1-hour.
Which Amazon Inventory Financing Option is Best For You?
Selecting the Amazon inventory financing option that is best for you relies heavily on the size of your business and growth goals. If you are a new Amazon seller you may want to start with cash or a credit card or a combination of the two. Sellers may also want to consider using personal loans to finance inventory purchases. While personal loans may not be a suitable long term financing option they can help sellers get started. If you are having trouble accessing traditional funding sources we highly recommend checking out Kickfurther. In the current market online sales are reaching an all time high but funding is becoming harder and harder to secure, especially for small or new businesses. Kickfurther offers an extremely attractive platform for Amazon sellers to secure inventory financing.
Can you get your inventory financed on Amazon with bad credit?
In most cases, the Amazon Lending Program does not check credit. This means that good and bad credit sellers may qualify for Amazon Lending. Since Amazon collects money from sales and then disburses the appropriate amount to sellers there is less risk involved. Amazon can collect interest fees and loan payments directly out of your sales. If Amazon is not offering you inventory financing and you have bad credit you should look into a personal loan.
How Amazon Sellers Can Apply for an Inventory Loan
If you are applying for a traditional business loan or credit card, you should select the lender you want to use and apply for a loan or credit card. Most lenders offer an online application process. If you are an Amazon seller that wants to apply through Kickfurther you will complete the form on their website. The form starts with basic information such as contact information, warehouse type, ownership, and annual revenue. After completing this form sellers can receive an estimate of funding potential. Kickfurther has funded 800 deals and counting totaling $50M in funding. Here are 4 easy steps to using Kickfurther for Amazon inventory financing…
#1. Create your online account
#2. Get funded within minutes to hours
#3. Customize your payment schedule
#4. Complete and repeat
In conclusion, Amazon sellers looking to finance inventory should consider Kickfurther. Originally launched in 2015, Kickfurther offers sellers a platform that allows them to raise money to purchase inventory. The company was originally created after the owner’s personal experience struggling to finance inventory for a business. The options he found were expensive and complicated, encouraging him to offer business owners a better way to financing inventory. Kickfurther’s unique approach to crowdfunding can deliver fast funding up to $2M and flexible terms. Compared to other financing options, Kickfurther is up to 30% cheaper. Kickfurther allows sellers to pay back loans as inventory sells. Sellers can access funds when they need them to pay suppliers without needing a purchase order or invoice. In addition, sellers can create customizable repayment schedules based on expected cash flow. In order to qualify for Kickfurther your company should sell a physical product and have sales exceeding $150,000. Most companies that have used Kickfurthers platform have proven its success and flourished from its support. Every business deserves to take advantage of every opportunity. Kickfurther can help your business access the working capital it needs to take advantage of opportunities. Kickfurther has been praised by experts for their creative funding model that has helped business grow and survive tough economic times.