Amazon (NASDAQ: AMZN) has announced Amazon Community Lending in partnership with Fintech lender Lendistry.
Amazon is, of course, the most popular e-commerce site in the US and many other places. Lendistry is a minority-led online lender for small businesses and commercial real estate.
In a note from Amazon, the company explained the partnership as expanding opportunities for SMEs selling in Amazon’s store. It is a new financing option through Amazon Lending, as Amazon Community Lending will provide U.S.-based sellers access to short-term loans of up to $100,000.
Amazon notes that the majority of the funds Lendistry has disbursed have gone to traditionally low-to-moderate income and other under-served business owners including African American and Hispanic-Latino populations. All U.S.-based Amazon sellers may access financing options from Lendistry.
Dharmesh Mehta, Amazon’s Vice President for worldwide consumer trust and partner support, said they are pleased to launch the pilot lending program and to make selling on Amazon’s store even more accessible to SMEs:
“Lendistry shares our commitment to championing underrepresented populations of business owners, knowing they often lack access to traditional methods of accessing capital and similar economic opportunities.”
Amazon reports that currently, outside sellers account for over 50% of its marketplace activity.
Everett K. Sands, founder and CEO of Lendistry, said that Amazon approached them with this “incredible idea.”
“They’re on a mission to support and empower minority-owned businesses, just like us, so it was a great fit. The Amazon seller community is the perfect place to make these kinds of financing programs available that can truly make a difference for a lot of businesses.”
Amazon has been inching into the Fintech sector for years and has been providing access to capital via credit programs since 2011. Year to date, Amazon and third-party lending partners have lent more than $800 million to US SMEs. Like most other countries, SMEs are a key aspect of the economy driving economic growth and prosperity. Yet, at times, smaller firms struggle to gain access to growth capital and banks too frequently turn away from smaller firms due to risk or lack of financial history. By providing risk based credit to smaller firms and underserved markets, Amazon creates a mutually beneficial ecosystem for its partners.
PlatoAi. Web3 Reimagined. Data Intelligence Amplified.
Click here to access.
