Amazon has loaned $1 billion to SMEs in the last 12 months

Written by on July 3, 2017 in Guest Blog with 0 Comments

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US e-commerce giant Amazon is gaining traction in the SME loan market, issuing $1 billion in loans in the last 12 months.

The company is gaining traction in the SME loan market. The company announced at the beginning of this month that it had originated over $3 billion in loans to more than 20,000 small businesses since 2011. Amazon Lending offers short-term business loans, for up to 12 months, to micro, small and medium-sized businesses selling on the site to help them grow their revenues. With access to more than 300 million active customer accounts worldwide, it provides small businesses the opportunity to reach customers quickly.

In the last 12 months alone, Amazon has loaned more than $1 billion to small businesses across the US, UK, and Japan. The company uses algorithms to identify merchants with good selling histories and offers them loans which are to be repaid through sales made on the site.

Loan amounts range from $1,000 to $750,000 and are generally used by merchants to buy more inventory and expand product lines. To date, more than half of the small businesses Amazon has loaned to have taken a second loan.

Commenting on the milestone, Peyush Nahar, VP for Amazon Marketplace, stated,

“We created Amazon Lending to make it simple for up-and-coming small businesses to efficiently get a business loan because we know that an infusion of capital at the right moment can put a small business on the path to even greater success. Small businesses are in our DNA. Amazon is providing capital to small businesses to help them expand inventory and operations at a critical period of their growth. We understand that a small loan can go a long way.”

While loans are currently restricted to select merchants in Amazon’s marketplace, the company’s entry into small-business lending will likely expand in the future. When this occurs, banks have reason to be concerned.

More on Businesswire.

This article was first published on The Fintech Buzz.

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Anthony Back

About the Author

About the Author: Anthony is currently a Senior Fintech Analyst at Expert Market Insight and the Director of Content at BreakingFinance, a fintech content creation firm. After spending several years tracking and analyzing technologies and investments at Israel Venture Capital, he now focuses his time conducting research and analysis on the global fintech industry to help startups, financial institutions and finance-related companies develop insightful content. Anthony’s areas of expertise include payments, trading & investing, banking, blockchain and digital currencies. He is also the lead contributor at thefintech.buzz industry blog. .

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