It seems every other day Amazon is in the news for some latest innovation. With the recent purchase of Whole Foods, Amazon is in the market to disrupt the “super” market. Amazon currently fulfills about 40% of all online retail sales. Jeff Bezos started Amazon in the garage and sold books and CD’s at first. They have now expanded into the grocery industry, streaming sphere, service industry and business finance sector.
Recently, Amazon boasted about the $3 billion in business funding that they have lent to small businesses since 2011. Their loan program is invitation only and funding amounts are ranging from $1,000 to $75,000.
With a major player like Amazon getting into the business finance game, banks will see a decrease in their loan processing while simultaneously encouraging growth for other online lenders.
While banks maintain strict criteria for underwriting, online lenders offer less scrutiny for small businesses.
Amazon’s lending is invitation only to businesses that sell products on Amazon, which means they are able to see the money coming into your business making the loans a safer bet for them.
Many online lenders do something similar. At Small Business Funding, loans are based on business revenue and not credit. There’s no collateral to put up. It’s all based on how well your business is doing. Most of the time, an online lender can help you secure financing at a faster rate than the traditional bank can.
As most people have been conditioned to seek loans through traditional banks, they tend to feel skeptical or weary of online lenders.
With Amazon’s recent success in the online business lending sphere, more people will turn toward online lending as a viable option for their business. Amazon is proof that people are trusting online lenders to help them scale and grow their business.
With much of the world going digital, it’s time to embrace online business loan lender.