CNBC
Amazon is introducing a new digital credit line for U.S.-based merchants with partner bank Goldman Sachs.
Small business owners who sell items on the e-commerce giant’s platform will soon be receiving targeted invitations from Goldman’s Marcus brand for credit lines of up to $1 million, according to people with knowledge of the project.
Potential borrowers will see the offer on Seller Central, the online hub for Amazon merchants and can apply in a simple two-step process, said the people, who spoke on condition of anonymity because they were not authorized to discuss the partnership publicly. The credit lines will come with a fixed annual interest rate of 6.99% to 20.99% and can be drawn and repaid, like a regular credit card.
The move — the latest high-profile collaboration between the worlds of technology and banking — is the first time Amazon will let a financial institution make underwriting decisions for the hundreds of thousands of sellers on its platform. More than half the goods sold on Amazon are from independent businesses. For the past decade, Amazon has kept a tight rein on its small business lending program, using algorithms and closely guarded sales data to determine who could use a loan.
