SELLER ALERT: Amazon Pauses Loan Repayment Due to COVID-19 Pandemic

Quarantines and lockdowns due to the coronavirus pandemic led to operation disruptions, prompting Amazon to halt loan repayment temporarily. For merchants fazed by the effects of the outbreak on their business, this decision comes as a much-needed blessing. The mandate took effect immediately, starting on March 26, the day it was announced. It will last until April 30, 2020. 

A Welcome Relief in Times of Crisis

With the global economy tethering on the edge of a dreaded recession, sellers cannot be more grateful for Amazon's decision. Services offering Amazon SEO greatly impacted with this settlement. In the circular released by the e-commerce giant, it specified that interests would not accrue within the duration of the pause. Once loan repayments resume on May 1, 2020, borrowers will be receiving their respective loan statements on the usual date as the previous months. 

With this, their loan repayment schedule resumes. The number of repayments left will stay the same as stated before their last statement. At present, Amazon is in the process of implementing changes in its tracking systems to accommodate this mandate. Thus, sellers are advised to disregard any notice for repayment of the loan, which they may receive during this time. 

About Amazon Lending

The e-commerce giant has always had a hands-on approach to every aspect of its online retail business. Besides actively streamlining processes for its marketplace, streaming service, and grocery delivery platforms; it also offers financial assistance via business loans. It provides this privilege to selected sellers, sending invitations that open them to loan amounts ranging from $1000 to $750000. 

Sellers who receive an invitation have undergone a prequalification process. To verify if you are prequalified, follow these steps: 

1. Access Seller Central by logging in to https://sellercentral.amazon.com.
2. Find out if your business is prequalified. This process only takes a few seconds. 
3. If you are prequalified, the system will provide a full-amount limit based on pre-assessment results. Feel free to choose the term that works best for your situation. 
4. Then, pick the amount you prefer, provided it is no higher than the established limit. 
5. Processing occurs within five business days. During this time, you can check your Seller Central account to verify if your loan is already available. 

Amazon's no-nonsense approach to providing financial assistance opens merchants to access funds for growing their business. This option makes it easier for you to address funding issues during times of need, especially during the Covid-19 health crisis. Besides easy access and quick processing, Amazon's lending program stands out because borrowers will not be penalized for prepayments.

What You Can Expect

Here are the details further explaining what you can expect if you decide to apply for a loan from Amazon: 

• Hassle-free application process

It takes only a few clicks to complete the one-page application on Seller Central. The absence of paperwork eliminates red tape, which needlessly stalls the procedures. 

• Fast payout, easy access

Once loans are approved, sellers can expect payouts to be available within five business days. To check your loan history and status, log in to Seller Central. You can access the information at any time of day. 

• Zero fees required

Aside from no prepayment penalty, the program also does not require borrowers to pay origination and application fees.

Do you want to learn how your business can benefit from taking out a loan from Amazon? Schedule a consultation with a respectable Amazon account manager. Get in touch with Jayce by emailing him at [email protected].