All Insights|Future Nexus
fintechFebruary 11, 2019

Deep Dive into Amazon Small Business Lending

Amazon has plans to offer financial services to their customers but so far has focused on providing credit to small businesses; as Tearsheet explores, these loans have some restrictions; loans are only available by invitation, which means that Amazon saves time by not having to sort through loan applications; the borrower also must use the loan to purchase or restock inventory sold on Amazon, which furthers their reliance on the Amazon platform; new offers of credit also come with potentially higher rates and shorter terms; all of these things bring up other interesting points of discussion such as data control, risk, the power Amazon has over sellers and much more. Source