Recently, Amazon announced that it has launched the Amazon community loan program in cooperation with commercial lender lendistry. Amazon community loan will provide short-term loans to Amazon sellers headquartered in the United States to maintain and develop their business. This will vigorously promote the development of small and medium-sized enterprises.
It is reported that Amazon and lendistry have jointly studied a solution to provide loans for sellers. Lendistry will provide Amazon sellers with term loans ranging from US $10000 to US $100000, with a maximum term of two years and an annual interest rate of 8% to 9.9%. Amazon sellers can use loan funds to develop store business and other strategic businesses, such as personnel and operating costs, inventory, product development and manufacturing, brand building and customer base expansion.
Here’s the Amazon announcement:
Dharmesh Mehta, vice president of Amazon global consumer trust and partners, said he was pleased to launch a community loan plan for U.S. sellers, which will provide more financial support for sellers and enable more U.S. Small and medium-sized enterprises to obtain opportunities to sell products on Amazon. Amazon will work with lendistry to provide development support for enterprises to help them obtain capital and achieve success.
Everett K. sands, founder of lendistry, said that lendistry is a financial institution that provides services to urban and rural small businesses in socially and economically disadvantaged communities, including African Americans and Hispanic Latinos, as well as individuals from community development financial institutions. It will work with Amazon to support the development of minority enterprises, and Amazon community loan program will provide support for seller financing to promote its business development.
Amzwizard learned that Amazon began to provide loans to sellers selling on Amazon in 2011. So far, Amazon and third-party loan partners have provided loans of more than US $800 million to small and medium-sized enterprises in the United States. Amazon has been vigorously supporting the development of small and medium-sized enterprises.