US tech giant Amazon has launched a new financing programme for UK ecommerce businesses, in partnership with London-based embedded finance firm YouLend.
Described by the companies as flexible financing, the programme will allow businesses in the UK that sell products through the Amazon marketplace to access advanced funds of up to £2m.
The funding is provided through a revenue-based model, which means that merchants can receive different amounts of debt financing depending on previous sales performance.
Businesses can use the funding – ranging from £500 up to £2m – to fuel growth plans, such as ramping up marketing, inventory, equipment and other expenses.
After the loan is accepted, merchants will pay a single fixed fee with repayments tied to a percentage of future sales made on Amazon. The company said that repayment is only required when sellers make sales, meaning ecommerce businesses have protection during slower sales periods.
YouLend is an embedded financing platform that partners with ecommerce platforms to provide access to capital through white-label finance solutions.
“Supporting businesses is core to YouLend’s mission. That’s why we are pleased to partner with Amazon to support the growth of their sellers by providing fast, flexible, and affordable financing,” said Jakob Pethick, chief commercial officer of YouLend.
“Amazon sellers will now be able to access revenue-based financing from YouLend to thrive and grow.”
Participating businesses require a minimum of three months of trading history on Amazon’s platform.
Amazon recently expanded its business with the acquisition of iRobot, known for its robotic vacuum, the Roomba.
The deal was paused due to an investigation from the Competition and Markets Authority (CMA), however, was ultimately cleared when the regulator concluded the deal would not meaningfully harm competition.
The post Amazon launches financing scheme for UK firms worth up to £2m appeared first on UKTN | UK Tech News.
