Flexible financing from Amazon & YouLend for UK firms

21 Jun '23

2 min read

Pic: Amazon

Insights

Amazon has partnered with YouLend to launch a flexible financing programme in the UK, offering merchant cash advances to businesses selling on its platform.
Tied to sales, businesses can repay as they earn, giving them more cash flow flexibility.
The financing model helps businesses grow by investing in inventory, equipment, or marketing.

In an effort to support UK-based businesses, Amazon has introduced a flexible financing programme in partnership with YouLend. This initiative gives businesses access to funding that’s directly tied to their sales, allowing them to repay as they earn. This revenue-based financing model supplements Amazon’s existing fixed-term business loans, and is designed to bolster cash flow flexibility for sellers.

The merchant cash advance scheme permits businesses to expand their inventory, secure new equipment, or intensify their marketing efforts, with the assurance of clear and capped rates. Accessible within days and requiring no fixed terms or late fees, this simple and swift financing option from YouLend will increase financial flexibility for businesses, Amazon said in a press release.

Businesses can apply for funding ranging from £500 to £2 million through their existing Amazon UK accounts. Once approved, sellers pay a single fixed fee, with repayments tied to a percentage of their future sales. This means repayments are only required when sales occur, shielding businesses during slower periods.

Amazon acts as a broker presenting these offers to sellers, who must have a minimum of three months’ trading history on Amazon to be eligible. This new financing option complements the existing array of solutions offered by Amazon Lending, catering to the varying needs of businesses.

“The new Amazon and YouLend merchant cash advance programme provides small and medium businesses with an alternative means of credit that is fast, convenient, and flexible. This new funding source will be valuable for a wide range of businesses, especially startups and those that do not qualify for a standard term loan,” said Raymond Pucci, research director of worldwide consumer and small business lending at International Data Corp (IDC).

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