Amazon Seller Financing Requirements Explained

So, you’re an Amazon seller, and business is booming. Or maybe, it’s just about to. You’ve got a product that’s catching fire, and you can almost taste the next level of success. There’s just one little problem: cash flow. It’s the age-old story for entrepreneurs. You need money to make money, whether it’s for a massive inventory buy, a brilliant marketing campaign, or just bridging the gap between payouts. You’ve heard about financing, but the big question hangs in the air: what are the actual Amazon Seller Financing Requirements? And more importantly, how do you know if you’ll qualify for Amazon seller financing?

It can feel like trying to find a secret password. You know the door is there, but you’re not sure how to open it. Honestly, it’s not as mysterious as it seems. As someone who talks to business owners about this every single day at Eboost Partners, I can tell you it’s more about preparation and understanding what lenders are looking for. Let’s pull back the curtain and walk through exactly what it takes to get the funding you need to grow.

An Overview of Your Financing Options

First things first, “Amazon seller financing” isn’t just one thing. It’s a catch-all term for several different financial tools. Think of it like a mechanic’s toolbox-you wouldn’t use a sledgehammer to fix a tiny screw, right? The same logic applies here. Your main options are:

• Amazon Lending: This is Amazon’s in-house financing program. It’s convenient and directly integrated into your Seller Central account, but it’s also invitation-only.
• Third-Party Lenders: This is where companies like us, Eboost Partners, come in. The ecosystem here is much broader, offering everything from traditional term loans and business lines of credit to more flexible options like merchant cash advances (MCAs).

Each of these paths has its own set of expectations and requirements. We’ll get into the nitty-gritty, but the big idea is that there’s likely a solution out there for you, even if one door is closed.

The General Requirements for Getting a “Yes”

Before we break down the specific types of funding, let’s cover the foundational elements that almost every lender-Amazon included-will look at. Getting these ducks in a row is half the battle.

How’s Your Sales History Looking?

This is, without a doubt, the most important factor. Lenders are fundamentally betting on your ability to generate future revenue to pay them back. What they want to see is:

• Consistency: Are your sales relatively stable or growing month-over-month? A sudden, unexplained drop-off can be a red flag.
• Volume: While there isn’t one magic number, most lenders want to see a minimum monthly revenue. For many online lenders, this might start around $10,000 a month.
• Time in Business: You’re not likely to get funding in your first month. Most lenders require at least 6 to 12 months of sales history to establish a reliable track record.

Are You a “Real” Business? The Importance of Your Entity and Banking

This might sound basic, but it’s a hurdle where many new sellers stumble. You need to operate like a formal business.

• Business Entity: Operating as a sole proprietor is fine to start, but many lenders strongly prefer-or even require-a formal business structure like an LLC or S-Corp. It separates your personal and business liabilities and signals that you’re serious.
• Business Bank Account: You absolutely must have a dedicated business bank account. Lenders will need to see your bank statements, and co-mingling your personal and business funds is a fast track to a “no.”

Let’s Talk Credit Scores

Ah, the dreaded credit score. Here’s the thing: its importance varies wildly depending on the type of financing. For a traditional bank loan? It’s critical. For a merchant cash advance? Much less so. We’re talking about both your personal FICO score and, if you have one, your business credit score. While a higher score always helps and opens up better rates, a lower score doesn’t automatically disqualify you from all options. It just means you’ll need to look at lenders who place more weight on your sales performance.

How Healthy Is Your Amazon Account?

If you’re seeking funding specifically for your Amazon business, lenders will want to peek under the hood of your Seller Central account. Your account health metrics are like a report card. Key things they’ll check include:

• Order Defect Rate (ODR): This needs to be under 1%. A higher rate suggests issues with product quality or customer service.
• Inventory Performance Index (IPI): A score above 400 is generally considered good. It shows you’re managing your inventory effectively.
• Customer Feedback: Positive reviews and a low rate of chargebacks or A-to-z claims matter.

Where Are You and Where Do You Sell?

Finally, some lenders have geographic restrictions. Most US-based lenders, for example, require you to have a US-registered business. Furthermore, the Amazon marketplace you sell on (e.g., Amazon.com, Amazon.ca, Amazon.co.uk) can also be a factor for some financing programs.

The Nitty-Gritty: Amazon Lending Eligibility

Getting an offer from Amazon Lending can feel like getting a golden ticket. It often comes with competitive rates and seamless repayment. Because it’s an internal program, their requirements are deeply tied to your performance on their platform.

You’ll likely be on their radar if you:

• Have a professional selling account in good standing.
• Show strong, consistent sales growth over the past 12 months.
• Have excellent account health metrics (low ODR, high IPI).
• Sell products with high customer satisfaction.

The catch? It’s invitation-only. You can’t apply. Amazon’s algorithms decide who gets an offer, and they don’t publish the exact formula. If you see an offer in your Seller Central dashboard, you’re in. If not, you’ll have to explore other avenues.

What Are Third-Party Lenders Looking For?

This is where the options really open up. Third-party lenders are more flexible because they’re not tied to Amazon’s internal ecosystem. Here’s a general breakdown of what they look for across different products.

As you can see, the requirements shift. A term loan is the most traditional, so it has the strictest criteria, similar to a bank. A business line of credit offers flexibility and is a bit more accessible. An MCA is the most accessible of all, focusing almost entirely on your sales revenue rather than your credit history. It’s a fantastic tool for newer businesses or those with less-than-perfect credit who have strong sales.

Don’t Qualify Yet? How to Improve Your Chances

If you’ve reviewed these requirements and feel you’re not quite there, don’t despair. You’re not stuck. Think of it as a roadmap for what to work on.

1. Focus on Sales Consistency: Before you even think about applying, spend a few months stabilizing or growing your revenue. Smooth out any wild fluctuations if you can.
2. Clean Up Your Amazon Account: Dive into your Seller Central metrics. What’s your ODR? Can you improve your customer feedback? Work on getting your account into pristine shape. This is something you should be doing anyway!
3. Formalize Your Business: If you’re still a sole proprietor, talk to a professional about forming an LLC. It’s a relatively simple step that makes a huge difference in how lenders perceive you.
4. Build Your Credit: Start taking small, deliberate steps to improve your personal and business credit. Paying bills on time is the single most effective thing you can do.

Getting Your Paperwork in Order

When you’re ready to apply, being prepared will make the process infinitely smoother. While every lender is slightly different, you should generally have these documents ready to go:

• Bank Statements: At least 3-6 months of statements from your business bank account.
• Financial Statements: A recent profit and loss statement and balance sheet.
• Tax Returns: Both personal and business tax returns from the last 1-2 years.
• Amazon Store Reports: Be ready to provide reports showing your sales history and account health.
• Business Formation Documents: Your articles of organization (for an LLC) or other similar documents.

Real Example: Qualifying for an Amazon Business Loan

Let me tell you about a client we worked with recently-we’ll call her Sarah. Sarah sells handmade leather goods on Amazon. Her sales were hovering around $15,000 a month, and she had a massive opportunity to get a bulk discount on leather, which would slash her costs. The problem? She needed $25,000 upfront.

She had been in business for 18 months, her LLC was in good standing, and her Amazon account health was solid. Her personal credit score, however, was around 620 due to some old student loans. A traditional bank had turned her down. She was frustrated.

Sarah came to us at Eboost Partners. We looked at her entire picture. The credit score was a factor, but her strong, consistent sales and great Amazon metrics told a more important story. She was a perfect candidate for one of our flexible business loans. We were able to get her the $25,000 she needed in under three days. She bought her leather, increased her profit margins, and is now averaging over $30,000 a month in sales. Her story is a perfect example of how looking beyond just a credit score can unlock a business’s true potential.