Inventory Financing Options for Amazon and Marketplace Sellers

If you’re looking to grow your Amazon business, chances are you are looking for a scalable financing solution. After all, you need to continue to buy and fill inventory in order to make every sale you can possibly make, avoid stockouts and crush the competition. As you may already know, a stockout can be detrimental to your Amazon business. Not only will you lose sales today, but your ranking within Amazon will drop causing you to lose future sales as well even after you’ve restocked your inventory. Therefore, sellers looking to reach their full online selling potential need an Amazon financing option that’s consistent and fast.

While inventory financing on Amazon and other ecommerce platforms is enough to overwhelm even the most seasoned online sellers, chances are you have more options than you think. Here we explore the ins and outs of popular inventory financing options so you can get a better idea of which works best for you and your business.


Personal Savings

Entrepreneurs have long financed their businesses using good old fashion savings. After all, it’s readily available with no interest, applications, credit checks or wait time. While it may be a good idea to use your savings to finance all or part of your initial inventory or to refresh inventory from time to time, this may not be the most sustainable option for your business. Once your savings is gone, it could take a while to replenish it. You also could be putting your personal finances at risk because if an unexpected business or personal expense comes up, you may not have the cash on hand to cover it.


Credit Cards

Credit cards are a familiar and convenient inventory financing option. Chances are you already have them and they come with tempting cash back and travel rewards offers. They are also interest-free if you pay them off on time. However, if you are unable to pay them off on time like you’d originally planned, you may end up paying interest. Also, platforms such as Amazon have essentially created unlimited demand among consumers, however, credit cards still have limits. So your credit card limit may not be high enough to cover all of the inventory you can possibly sell. Like with stockouts, this can result in missed sales.


Traditional/Alternative Loans

Traditional loans offer low interest rates and long payment terms. However, approval rates for small businesses are low. So they can be difficult for marketplace sellers to get. Alternative loans tend to have better approval rates, but the payment terms are short and the interest is high. Like credit cards, loans may not be enough to cover all of the inventory you need, especially if you have a hot product or want to take advantage of seasonality.


Amazon Lending

If you qualify for an Amazon Loan, you may find an offer in your Seller Central dashboard. It is a one time offer with an expiration date. You can’t apply directly for an Amazon loan. But, if you qualify, they will contact you directly with a binding offer. Repayments will be debited directly from your Amazon payouts so paying it back is easy and convenient.



Payability is a financing company that provides Amazon and marketplace sellers with daily cash flow and capital advances. Their two products: Instant Access and Instant Advance were designed specifically for the needs of marketplace sellers.

Instead of waiting 14+ days, Amazon sellers can sign up for Instant Access and get their Amazon payments every business day. Here’s how it works: Each day Payability will advance you 80% of your Amazon payout based on the previous day’s sales. The remaining 20% stays in a reserve to cover returns and chargebacks and is released to the seller on Amazon’s regular payment schedule for a 1-2% fee on gross sales. With steady cash flow you can consistently fill inventory, grow your business and avoid the dreaded stockout.

An Instant Advance is a purchase of future marketplace receivables. Using your account analytics, Payability will predict what your sales will be in the next 3-4 weeks and advance you that money now. With this influx of cash, you can launch new products, take advantage of seasonality and other big growth opportunities. The cost is 1% a week. The total costs depends on how long it takes Payability to obtain all of the receivables purchased. This usually takes 16-20 weeks. But, the earlier they receive the full amount the less you will pay in fees. See just how it works in this short video.

Approval for Payability is based on Amazon account health rather than credit so there are no credit pulls or dings to your credit. So your access to capital is based on how much you can sell rather than how much you can borrow. Both Instant Advance and Instant Access work well separately or in conjunction with each other, Amazon Lending and/or other forms of financing.

Sign up for Payability at and receive a $200 sign on bonus. Want to learn more? Check out Payability on Trustpilot, Seller Central and Fit Small Business.