Amazon Launches New Merchant Cash Advance Program Powered by Parafin, Doubling Support for Small and Medium Businesses | New

SEATTLE–(BUSINESS WIRE)–November 1, 2022–

Today, Amazon (NASDAQ: AMZN) launched a new funding solution, a merchant cash advance, provided by Parafin, a US provider of growth capital for sellers. This secure funding option ties the cash advance payment to a portion of sellers’ future sales for a fixed capital fee and provides eligible Amazon sellers with easy and fast access to capital when they need it, combined with flexible payment plans. With this program, sellers can access capital in days with transparent, capped rates, no fixed terms, no personal guarantees, no credit checks or excessive paperwork, and no late fees. The program is rolling out to select US-based businesses today and will be available to hundreds of thousands of eligible sellers by early 2023.

This new Merchant Cash Advance, through which eligible businesses can access capital ranging from $500 million to $10 million, provides merchants with financing opportunities to grow their business, protect margins, develop new products, grow inventory and effectively manage cash flow. A flexible payment schedule is determined by a fixed percentage of the seller’s Gross Merchandise Sales (GMS) until the financing is paid off, with no minimum payment, no interest (only fixed capital charges) and no collateral required, unlike a traditional loan. . Payments are only required during periods when a seller has made sales, and the fixed payment rate ultimately protects them during periods of slow or no sales. This financing option will provide sellers who have been selling on for at least three months with an additional solution for their financing needs in addition to the existing portfolio of financing solutions consisting of term loans, interest-only loans and lines of credit. provided by Amazon and its third-party funding partners.

“Amazon is committed to providing convenient and flexible access to capital for our sellers, regardless of size,” said Tai Koottatep, director and general manager of Amazon WW B2B Payments & Lending. “Today’s launch is another step in strengthening Amazon’s commitment to sellers and builds on the strong portfolio of financial solutions we already offer. This latest offering dramatically expands sellers’ reach and capabilities, and expands their access to capital in a flexible way, helping them control their cash flow and, by extension, their entire business. »

“We founded Parafin with a mission to grow small businesses, and we’re excited to have the opportunity to do just that by offering Amazon sellers this merchant cash advance option,” said Vineet Goel, co. -founder of Parafin. “We are privileged to be part of Amazon’s suite of financial solutions, and we look forward to making a difference for sellers looking to grow their business.”

“It can be difficult for small and medium-sized businesses to access capital, whether they are just starting up or more established,” said Laurie McCabe, partner at SMB Group. “What Amazon does in partnership with Parafin to provide quick access to capital in a convenient and transparent way – and that protects sellers during periods of low or no sales – is important to the industry. It will be exciting to see how Amazon sellers use this cash advance solution to help grow their businesses. »

For more information about this merchant cash advance, please visit

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PUBLISHED: 11/01/2022 09:01/DISC: 11/01/2022 09:03

Copyright BusinessWire 2022.

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