Marcus by Goldman Sachs Line of Credit for Amazon Small Business Sellers


#30

Just what I needed!!!

Wasn’t bad enough that I have to do business with Amazon but now they want to give Goldman Sachs a chunk of your business.

The same company that defrauded investors and was responsible for the collapse of the economy in 2008.

Is it as simple and transparent as a subprime mortgage?

Weird how Amazon doesn’t mention the billions in fees companies like Goldman Sachs collected from the PPP loans and how there is a class action lawsuit cause they gave the loans to 80 public traded companies that owed them money instead of issuing payments first come first serve.

Just when I thought Amazon couldn’t get scummier they continue to surprise me.


#31

My only observation is to state the truth: Amazon kept offering my loans I simply didn’t need. Personally I didn’t think that was responsible business practice.


#32

Marcus loans have decent rates, underwriting guidelines are very conservative.

received an invite to apply for a Marcus Personal Loan last November.

FICO was 757. total debt to income ratio under 50%.

standard boiler-plate turn down notification received minutes after loan submission;

“we’re sorry we are unable to approve you for a loan at this time, you will be receiving our reason(s) for declining within 7-10 business days by mail”.

be interesting to hear the feedback from marcus loan applicants on this forum in couple months.


#33

:grinning:


#34

My credit score is so low my offer letter will read "thank you for applying for Marcus but HELL NO! We would not give you a pack of gum on credit. Thanks, please Never waste our time again!


#35

LOL!!! That’s the kind of laugh i needed this morning. Thank you.


#36

I used the traditional loans by amazon lending in the past, and if you know what to expect and analyze the interest rate and are willing to accept it, this is OK.
The biggest disadvantage was the high interest rate (APR).
Few times I responded to some questions from amazon lending, and always my remark was that I would prefer line of credit.
Line of credit is a flexible financing tool, that seller always know that funds are available for him, and the exact amount.
This allows sellers to plan ahead, pay faster part/all of the credit line, if they don’t need the funds for some time, and use it when they need the funds.
The devil is in the important detail…what is the interest rate ?
Will it be like other banks rates ?
Unless we know the interest rate, it’s really impossible to grade this program.


#37

Do you mean credit usage percentage ?


#38

They already have the main LEVERAGE ! YOUR ACCOUNT… :joy:


#39

Oh I get it, the line of credit is to ensure you pay your high interest Amazon Loan back at a time when a good percentage of your product has been delisted due to COVID BOTS, your sales have slumped due to buy box failures and your Amazon loan payment was x2 this month leaving you in a position where you were forced to lay off employees. Smart.


#40

What are the fees. ?
5%, 6%, 7 % … 12 %??


#41

If Amazon really wanted to help seller growth they’d allow daily payouts, or more frequent payouts for all sellers and not just a few.


#42

10-20%


#43

[quote=“Amor_Memorials, post:38, topic:642610, full:true”]
They already have the main LEVERAGE ! YOUR ACCOUNT…
[/quote] They have no leverage over me. I fulfill my own orders and I manufacture my own products. I have no competition because I do not allow any distributors. I’m also grandfathered in here where I can withdraw my money every single day and I do. I was doing very well selling online and I will still do very well if something happens and I don’t sell here on Amazon anymore. I actually only have about 5% of my product line on Amazon. If I decide Amazon isn’t for me. or they decide I’m not a good fit for them…see ya! Oh well. One door closes another always opens.


#44

Same happens to me, hope soon we receive loan offers.


#45

Amazon Lending is better than another lending :heart_eyes: I think amazon lending is the best way.


#46

Too many fraudulent sellers for that! No marketplace offer that any more, so don’t single out Amazon. None of them, and yes I know!


#47

yes


#48

@debranator
Credit usage of 50% is considered fair.
But, if you take more debt, the credit usage would go up…
Credit usage of 60%+ is considered poor, and maybe the future debt level would put you in the very uncomfortable risk level for the lender.


#49

Then maybe only allow sellers with a year or two of good metrics to take more frequent payouts.