This offering will provide these sellers with access to credit lines of up to $10 million through Amazon Lending to support their stores, the companies said in a Tuesday (Jan. 30) press release emailed to PYMNTS.
“This relationship with Amazon highlights our dedication to transforming eCommerce financing to empower small and medium-sized businesses with the accessible financial tools they need to focus their energy and aspirations on amplifying their businesses and attaining exceptional growth,” Ricardo Pero, co-founder and CEO of SellersFi, said in the release.
The new lines of credit join the other eCommerce financing and financial services offered by SellersFi, which also include working capital, prepaid debit cards and digital wallets, according to the release.
By offering Amazon sellers seamless access to broader lines of credit, SellersFi and Amazon aim to help sellers meet the challenges they face, the release said.
Among these challenges is the risk of running out of money, which causes the failure of 32% of eCommerce startups, per the release.
“Amazon is committed to providing our sellers with flexible and convenient access to capital, regardless of their size,” Tai Koottatep, director and general manager at Amazon Worldwide B2B Payments & Lending, said in the release. “Through this lending option with SellersFi, we’re able to strengthen that commitment and offer sellers even more opportunities to grow their businesses.”
PYMNTS Intelligence has found that about half of small and medium-sized businesses (SMBs) with annual revenues of $10 million or less have no access to business or personal financing.
Eight percent of SMBs have access to only personal financing, according to “Main Street Health Q2 2023: Credit’s Key Role in SMBs’ Plans,” a PYMNTS Intelligence and Enigma collaboration.
Digital commerce is a capital-intensive business model, and keeping pace with buyer demand puts a strain on finances, Pero told PYMNTS in an interview posted in December 2020.
“Small businesses face similar challenges that big retailers face when they transact online, because through marketplaces, they are able to reach out to millions of consumers,” Pero said. “But most people forget that we’re still talking about small businesses with a limited number of resources.”