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


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.


Do you mean credit usage percentage ?


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


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.


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


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.




[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.


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


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


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!




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.


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


This post just hurts my head, in so many ways.
This is akin to those that buy my products, and then give me 1 start, complaining that it was too expensive.


no, i was referring to my total debt to income ratio. ironically, it was my recent usage and temporary increase on card balances that was the reason given for the decline.

its the same old story of borrowing money;

the lending offers pour in when you don’t need any, but nearly impossible to borrow any funds (at decent rates) when you do.


i owned a mortgage brokerage from 1986 - 2010. still keep licensing current r.e. and mortgage. just got sick of the biz after the unlicensed L.O.'s swarmed in peddling liar loans created by an analyst at one of the big 4 investment bankers on wall street (GS being major player) packaging fake AAA rated bond instruments to sell unwitting foreign buyers and governments.

but i digress, the point of this was to suggest amazon is likely involved with GS in what is similar to associate marketing, but termed in the industry as: Rate Participation Spread.

Whereby, GS gives Bezos anywhere from 1/4 to perhaps several points spread or “participation” in the Interest Rate the Borrower Receives for their Loan Approval thru this Line of Credit Program.

My Mortgage shop had a rate participation agreement in late 80’s early 90’s with the 2nd Mortgage Div. of Wells Fargo Bank; Wells Fargo Credit Corp in Scottsdale AZ.

We built a nice month residual check from little rate bumps .250% here, .625% there, added onto the internal rate sheet pricing.

I suspect the spread is even more wide open on these biz LOC’s being offered nowadays.

Back in the day, transparency laws didn’t exist as they do today.

Read Your Fine Print, it’ll likely be in there buried in the 8 pt type.

…and the rich get richer


curious what these rates will be and whether gs has incentivized this partnership with bezos able to share in the wealth from any “rate participation” spreads added to the daily GS Internal Rate Sheets?

I know biz loans have different disclosure laws, maybe someone more knowledgable with business lending can chime in on whether participation agreements need to be disclosed same as do with personal lending?


They have been talking about this for 2 years now… Finally got the agreement in place, but no telling HOW long it will take to actually be implemented. Also, with Goldman underwriting it, there will likely be some pretty serious compliance checks and businesses history needed. I guess time will tell… In the interim, I have been seeing great feedback from SellersFunding, their rates are in line with what Goldman is claiming, but usually approving in 24 hours. Also, they require only 6 months of sales history and can also lend to a lot of US sellers that are not BASED in the USA, which is unique. And since Kabbage and Payoneer and such stopped their loans, seems SF is in a good spot as they only focus on e-com sellers.


I know SellersFunding is offering that now, they pay up to 90% of daily balance so it leaves a cushion for returns and such.