Amazon Lending vs. Alternatives: Which Is Best for Your Store?
- Jason Feimster
- Nov 27, 2025
- 6 min read
Updated: Nov 30, 2025
If you’re an e-commerce store owner, you’re no stranger to the challenges of securing funding to scale and grow your business. Whether you're looking to purchase more inventory, expand your product line, or invest in marketing, having access to capital is essential for maintaining momentum.
One option you might have considered is Amazon Lending. But how does it stack up against other lending solutions? In this article, we’ll take an in-depth look at Amazon Lending vs. fintech alternatives like SellersFi, 8fig, and others to help you choose the best funding option for your store.
What Is Amazon Lending?
Amazon Lending is a business loan program offered directly by Amazon to qualified sellers. If you meet certain criteria, such as having a strong sales history and a good account health score, you may be eligible for an Amazon loan. The loan is intended primarily for sellers who need capital to purchase inventory that will be sold on Amazon. It's an attractive option for many, given its ease of access and streamlined application process.
Amazon Lending: Pros and Cons
Pros:
Fast and Easy Application Process: If you are an eligible seller, applying for an Amazon loan is quick and straightforward, with no complex paperwork.
Fixed Interest Rates: Amazon Lending offers fixed APRs, ranging from 6–25%, which is competitive for sellers with established sales figures.
No Collateral Required: Unlike traditional loans, Amazon Lending doesn’t require personal guarantees or collateral outside of your Amazon sales. Your inventory acts as collateral, making the process less risky for you.
Quick Disbursement: Once approved, funds are typically disbursed quickly, so you can take advantage of new business opportunities without delay.
Cons:
Limited Use of Funds: Perhaps the biggest drawback is the restriction on how you can use the funds. The loan can only be used for Amazon-related expenses, primarily inventory. This lack of flexibility can be a dealbreaker for sellers who need capital for other business needs like marketing, software tools, or hiring staff.
Eligibility Requirements: Amazon’s internal criteria, including account health, sales volume, and historical performance, determine whether you qualify. This means that many smaller or newer sellers may be excluded from the program.
Higher APRs for Riskier Sellers: If you’re a newer seller or have a less-than-ideal performance history, Amazon may offer you a higher interest rate, making the loan more expensive in the long run.
Fintech Lending Alternatives: More Flexibility, Better Terms
While Amazon Lending may be a solid choice for some, it’s not the only option available. Over the past few years, a range of fintech lenders have emerged, offering more flexibility and lower APRs for e-commerce businesses. These alternatives provide funding for a wide variety of business needs, including marketing, product development, and general working capital, not just inventory.
SellersFi: The Best Option for Amazon Sellers Looking for Flexibility
SellersFi is a fintech lender that specializes in working with Amazon sellers. Unlike Amazon Lending, SellersFi offers a broader range of funding solutions. They understand the complexities of e-commerce and provide capital that can be used for a variety of purposes—inventory, marketing, technology, and more.
Loan Amount: Up to $5 million
APR: Starting at 7%
Repayment Period: Flexible terms from 3 to 18 months
Best For: Sellers who need a flexible funding solution that can cover more than just inventory costs.
Pros:
Higher Loan Amounts: SellersFi offers significantly higher loan amounts than Amazon Lending, making it an excellent choice for rapidly growing businesses that need more capital to scale.
More Flexible Loan Use: With SellersFi, you can use the funds for any aspect of your business—marketing campaigns, hiring staff, upgrading your website, or expanding your product lines—not just Amazon inventory.
Lower APR: Starting at just 7%, SellersFi offers lower APRs compared to Amazon Lending, which is beneficial for your bottom line.
Fast Approval Process: Like Amazon Lending, SellersFi offers a relatively quick approval process with minimal paperwork. The application is online, and funds are generally released quickly.
Cons:
Strict Qualification Criteria: SellersFi requires a solid track record of sales and account health. They also assess the growth potential of your business, so new or slower-growing sellers might not be eligible for larger loans.
Not Exclusively for Amazon Sellers: While SellersFi is tailored to Amazon sellers, it also works with other e-commerce platforms. This means it’s a good fit for businesses that sell on multiple platforms (e.g., eBay, Shopify) but might be less advantageous for Amazon-only sellers looking for more specialized support.
8fig: Scaling Your E-Commerce Business with Custom Funding Solutions
8fig is another top-tier fintech lender that stands out for its highly customizable funding plans. This platform is ideal for e-commerce businesses looking for capital that grows alongside their sales. 8fig provides a dynamic funding solution where the loan grows with your business, allowing you to scale operations effectively.
Loan Amount: Varies based on sales and growth potential
APR: Variable
Repayment Period: Flexible, based on monthly sales cycles
Best For: Sellers who are experiencing high growth and need a scalable financing solution.
Pros:
Scalable Funding: One of the biggest advantages of 8fig is that the loan amount is flexible and increases as your business grows. As your sales increase, you can access more funding, making it ideal for high-growth businesses.
No Restrictions on Loan Use: Unlike Amazon Lending, 8fig allows you to use the funds for any aspect of your business, from inventory and product development to marketing and technology upgrades.
Data-Driven Approach: 8fig uses a data-driven approach to determine loan amounts, repayment terms, and interest rates. This helps ensure that businesses receive loans they can comfortably repay based on their specific financial situation.
Cons:
Focused on High-Growth Sellers: 8fig is best for businesses with proven growth potential. If your business is still in its early stages or has relatively low sales, you may find it difficult to qualify for funding.
Complex Application Process: Due to its customized nature, the application process for 8fig can be more time-consuming and complex compared to Amazon Lending or SellersFi.
Other Notable Alternatives
Onramp: Provides non-dilutive funding solutions to e-commerce businesses, particularly those in the earlier stages of growth.
Payability: Offers quick access to capital and is best suited for sellers who need funds to support regular cash flow and working capital.
Capchase: Known for its ability to fund recurring revenue businesses, Capchase is ideal for companies looking to secure financing for subscription-based models or long-term sales cycles.
Uncapped: Provides flexible, non-dilutive funding with no interest, making it an appealing option for businesses looking to avoid high APRs.
Amazon Lending vs Fintech Lending: A Quick Comparison
To help you weigh your options, here’s a detailed comparison of Amazon Lending and top fintech lenders like SellersFi and 8fig:
Feature | Amazon Lending | SellersFi | 8fig |
Loan Amount | Up to $750,000 | Up to $5 million | Custom scaling with growth |
APR | 6% – 25% | From 7% | Variable (based on sales) |
Repayment Terms | Fixed, 6–12 months | Flexible, 3–18 months | Scalable with sales growth |
Use of Funds | Inventory only | Any business purpose | Any business purpose |
Qualification Criteria | Sales performance on Amazon | Seller performance and growth | High-growth businesses only |
Which Is the Best Option for You?
The best choice depends on your store’s unique needs and growth trajectory. If you’re looking for quick, no-frills access to capital for inventory with minimal paperwork, Amazon Lending could be a great fit—especially if you already have a strong sales history and an established account with Amazon.
However, if you're looking for greater flexibility, the ability to use funds for multiple business needs, and better rates, fintech lenders like SellersFi and 8fig provide more comprehensive solutions for scaling e-commerce stores.
Ready to Secure the Best Funding for Your Store?
No matter which option you choose, obtaining the right funding is crucial for scaling your business. If you're ready to take the next step and get a personalized quote, Get Funded Here to start your journey toward financial growth.
For more information on SellersFi, check out our detailed review to see if it’s the right fit for your e-commerce business.
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