If you are currently making a small amount of money each month selling products on Amazon, you are probably looking for ways to take your selling on Amazon to the next level. One of the easiest ways to increase your monthly earnings from Amazon is to expand your inventory. Unfortunately, expanding an inventory can cost a lot of money and many people do not have the funds needed to undertake such a venture readily available. With that in mind, in this article, we are going to briefly discuss 5 ways in which you can raise money to fund your Amazon inventory.
1. Peer-To-Peer Financing
You may not have heard about peer-to-peer lending, but this can be a great way to get your hands on some extra cash because there are generally fewer background checks carried out and the interest rates tend to be more competitive. There are dozens of peer-to-peer lending sites in operation and if you are able to write a good proposition to potential lenders regarding your Amazon business, you should be able to easily raise the funds needed to expand your inventory.
2. Merchant Cash Advances
When you take out this type of financing, the creditor will take a set percentage of all credit card sales each day. There is no fixed regular payment schedule, but it is important to note that this type of borrowing can be very expensive and interest rates can fluctuate wildly. Unless you have no other option, you should generally avoid this type of financing.
3. Credit Cards
Many Amazon sellers use personal credit cards to purchase extra inventory. However, if you choose to go down this route, you need to make sure that you always pay your bills on time and select credit card companies that have the lowest interest rates. Furthermore, it is important to keep in mind that if you fail to keep up with your monthly credit card repayments, your personal assets could be in jeopardy.
4. Business Loans
Taking out a business loan from a reputable provider, such as Kabbage, is perhaps the best way to secure funding to expand your Amazon Business. When you apply for a business loan, the provider will generally only look at your business accounts and will not take into account your personal credit score. You can often have the funds in your business bank account within minutes of approval.
5. Amazon Lending
Amazon has their own lending program, which they use to offer their sellers direct loans. The rate of interest on a loan from Amazon is generally very competitive and taking out such a loan will generally cost you less in the long-term than a business loan from an external creditor. Unfortunately, the Amazon lending program is available by invitation only. This means you have to wait until you are selected by Amazon before you can access this type of funding.
Featured above are 5 different ways that you can potentially raise money to fund your Amazon inventory. Before deciding on the type of financing that is best for your Amazon business, however, it is important to make sure you conduct further research and consider the pros and cons of each option carefully.