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Amazon launches merchant cash advancement programme

Amazon launches merchant cash advancement programme

Amazon has joined forces with Parafin to launch a merchant cash advance service that ties repayment to future sales.

With the cost of borrowing rising, Amazon is looking to entice US businesses on its platform with the new programme that promises to get sellers access to capital in a matter of days with transparent and capped rates, no fixed term, no personal guarantee, no credit checks, and no late fees.

Businesses can access capital from $500 up to $10 million, with a payment schedule determined by a fixed percentage of their gross merchandise sales. There are no minimum payments, no collateral requirements and no interest, with firms instead paying a fixed capital fee.

Tai Koottatep, director and GM, Amazon WW B2B payments and lending, says: "This latest offering significantly expands sellers’ reach and capabilities, and broadens their access to capital in a flexible way—one that helps them control their cashflow, and by extension, their entire business."

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