B2B Payments

SellersFunding Targets Amazon Sellers With AmzLenders Acquisition

SellersFunding buys AmzLenders

New York-based SMB lender SellersFunding has acquired AmzLenders as it works to expand its reach with eCommerce sellers and take on Amazon. Terms of the deal were not disclosed.

In an interview with Bank Innovation, SellersFunding CEO Ricardo Pero explained that AmzLenders, a two-year-old company focused on Amazon sellers, will allow SellersFunding to add 20 percent more customers to its platform. New Jersey-based AmzLenders was founded by Amazon seller Steve Creasy, who will act as a consultant to SellersFunding over the transition period.

“If you are a well-established bank, there’s no need to spend a lot on driving traffic but, when you’re an online lender, there’s no branch across the street where you can talk to a real person,” Pero said.

The issue is, eCommerce merchants can often be seen as “too small for a bank” and as a result, have difficulty securing loans. Online lenders are now filling that void to offer these small business owners lines of credit.

AmzLenders offers loans ranging from $1,000 to more than $50,000, while SellersFunding loans are usually in the range from $10,000 to $500,000. SellersFunding operates in the U.S., Canada and the U.K.. with the company integrating with eCommerce platforms including Shopify, Walmart, Chewy, Walmart.com, eBay and Jet. It then uses the data that’s cross-checked with banking and credit information to make loan decisions. In addition, the company uses machine learning models to support the underwriting process, which typically takes 24 hours.

“Non-bank lenders are lining up to serve the sellers that are fueling [Amazon’s] marketplace,” wrote Kiri Masters, CEO of Bobsled Marketing and an Amazon seller, in a recent report. “These lenders are not looking at these credit facilities the way traditional banks are. Providing a credit facility was approved [by the bank], it would take several more weeks to fund the loan, even longer if the facility required a guarantee from the U.S. Small Business Administration.”

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