Amazon seller loans: how to fund inventory as an Amazon seller

Reviewed by Turan Zeynal, Co-Founder, Outset Funding Partners · Last reviewed October 5, 2026

TL;DR

Amazon sellers usually borrow for one reason: inventory has to be paid for weeks or months before Amazon pays you for the sale. The common options are Amazon's own invited lending, marketplace advances repaid from your payouts, revenue-based funding, a business line of credit, and inventory financing. A line of credit is usually the cheapest if you qualify; advances are faster to get but cost more. Through Outset Funding you need $10,000+ in monthly revenue and 6+ months in business; terms and approval come from the lender.

Quick facts

Main use: Inventory buys and restocks
Usually cheapest: Business line of credit
Easiest to get: Payout-based advances (higher cost)
What lenders check: Seller reports, bank statements, account health
Min revenue: $10,000/month
Time in business: 6+ months

The 60-second answer

Selling on Amazon has a built-in cash gap. You pay your supplier up front, wait for production and shipping, wait for the stock to check in at a fulfillment center, and only then start selling. Amazon then releases your sales on a settlement cycle, typically about every two weeks. A single restock can tie up cash for two to four months.

That gap is why the right funding depends on how long your money is out. Short, repeating gaps suit a line of credit. A one-off large order suits inventory financing or a term loan. If you also sell on your own store or in person, our retail and e-commerce funding guide covers the wider picture.

How it works, step by step

Work out how long your cash is tied up
Count the days from paying your supplier to receiving the Amazon payout for those units. That number decides which product fits.
Gather your seller reports and bank statements
Lenders usually want recent bank statements plus Amazon payment or settlement reports showing sales history.
Check your account health first
Late shipment rates, policy warnings, or a past suspension can affect approval because they put future payouts at risk.
Compare total cost, not just the rate
Ask for the total payback amount and the repayment schedule. A daily or per-payout deduction feels small but can cost more than a monthly loan payment.
Avoid stacking
If you already have an advance repaid from your Amazon payouts, adding a second one can leave too little cash for the next restock.

Worked example: funding a $30,000 restock

Illustration only, with assumed rates. Your actual offer depends on the lender. Say you need $30,000 for a restock and expect the stock to sell through and the payouts to come back in about 90 days.

With a line of credit at an assumed 18% APR, borrowing $30,000 for 90 days costs about $1,330 in interest ($30,000 x 18% x 90/365). With a payout-based advance at an assumed 1.15 factor rate, you repay $34,500, so the cost is $4,500 for the same 90 days. The advance may be easier to get, but in this example it costs more than three times as much.

The real test is margin. If that $30,000 of stock brings in $12,000 of profit after Amazon fees, both options still leave money on the table for you. If the margin is thin, the advance can eat most of it. Run your own numbers in the merchant cash advance calculator before signing.

Pros and cons

Pros

✓Sales history on Amazon is easy for lenders to verify
✓A line of credit can fund repeat restocks without reapplying
✓Revenue-based options flex with seasonal sales

Cons

×Payout-based advances can be expensive on thin-margin products
×Account health problems can block or delay funding
×Stacking advances can leave too little cash for the next order

Who qualifies

•Amazon FBA and FBM sellers, including those who also sell on their own store
•$10,000+ in monthly revenue
•6+ months in business
•US business bank account receiving your payouts

Amazon seller funding options compared

Option	When to use	Watch out for
Amazon's own lending (by invitation)	Amazon has offered you credit in Seller Central and the amount covers your need.	Invitation only; repayments come out of your payouts and the amount is set by Amazon.
Marketplace / payout-based advance	You need cash quickly and can repay from upcoming sales.	Usually priced with a factor rate; the true annual cost can be high.
Revenue-based funding	Sales are seasonal and you want payments to rise and fall with revenue.	Total payback is fixed; a slow season stretches it out but does not lower it.
Business line of credit	You restock often and want to draw and repay repeatedly.	Needs steadier revenue and credit to qualify.
Inventory financing / term loan	One large order, such as a Q4 buy or a new product launch.	Fixed payments start before the stock sells through.

Frequently asked questions

Can I get a business loan as an Amazon seller?

Yes. Lenders look at your sales history, bank statements, and account health. Through Outset Funding you need $10,000+ in monthly revenue and 6+ months in business. Approval and terms are set by the lender.

Is Amazon's own lending better than other options?

It can be convenient if you are invited, because it is built into Seller Central. But the amount is set by Amazon and repayments come from your payouts. Compare its total cost with a line of credit or loan before accepting.

Why do Amazon sellers run short on cash even when sales are good?

Because you pay for inventory long before Amazon pays you for the sale. Growing sales make the gap bigger, since each restock is larger than the last.

Do lenders need access to my Seller Central account?

Some ask to connect to your seller account or for downloaded payment reports. Others only need bank statements. Ask what data they read and keep access limited to what is needed.

Can I use funding for Q4 inventory?

Yes, Q4 restocks are one of the most common uses. Plan early, because inventory has to arrive and check in before the peak season starts.

Does Outset Funding lend directly?

No. We match businesses with lending partners. Rates, amounts and approval are set by the lender.

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