It’s not unusual for Amazon sellers to run into financial hurdles. For example, slow payouts can hinder your cash flow and have a huge impact on your online business.
You want to take your business to the next level, but you don’t have enough capital to scale up. Does this sound familiar? If so, Payability may be the funding solution you’ve been looking for.
Payability offers two financial products to e-commerce sellers on Amazon and other virtual marketplaces.
Instant Access – This financial product is similar to invoice factoring. You get daily payouts for your marketplace sales. With Instant Access, you don’t have to wait for weeks to get the capital you’ve earned from your sales.
Instant Advance – Payability buys future sales and gives you a lump sum payment. This financial product works like a merchant cash advance.
These financial products are great, but they do come at a cost.
Payability’s simple fee structure makes it easy for you to comprehend your cost of borrowing, and their fees are competitive.
Getting funding from Payability is not as hard as you may believe. You will not have to deal with a credit check. Payability will look at the performance of your business. If things are going well, you stand a good chance of getting approved.
Payability has helped thousands of e-commerce merchants since 2016. According to their website, they have provided over $1 billion dollars in funding.
Can you get approved for a loan? Let’s read on to see if you are the ideal loan candidate for Payability.
Payability offers two primary products that are similar to the following categories:
Merchant Case Advance – This type of cash advance involves a lender purchasing a percentage of your future sales for a lump sum. This financial product seems like a loan, but it isn’t governed by laws of regulating loans. The full collection of a percentage of your daily sales serves as a “Payment”.
Invoice Factoring – This is where you will receive a percentage of the funds that would be earned from unpaid invoices. A small fee is typically attached to Invoice Factoring.
Payability Borrower Qualifications:
The requirements are based on the product you apply to receive.
You must meet the following requirements for the Instant Access product:
- Time in Business: You must prove that you have been in business for at least three months
- Marketplace Sales: Your business must generate at least $2,000 per month
To get approved for the Payability Instance Advance, you must meet the following requirements:
- Time in Business: You must show nine months of solid sales history
- Personal Credit Score: Not applicable
- Marketplace Sales: You must prove that your business generates at least $10,000 per month
It’s now time for us to look at the terms and fees.
Payability Terms and Fees
To get Payability’s Instant Access, you must be ready to pay a single flat fee of 1% to 2% of your total gross sales. Your sales history and monthly sales will determine your fee.
Advance Amount: Typically 80% of daily receivables
Fixed Fee: 1% to 2% of gross sales
As an e-commerce merchant, you are probably familiar with the hurdles that come from waiting on your payments. It may take weeks for your marketplace revenue to kick in. This can have a negative impact on your business if you are in need of quick cash.
Unlike conventional banks and credit unions, Payability’s Instant Access can give you a quick cash infusion.
Payability is in position to pay up to 80% of your sales revenue from the previous day. The remainder will be covered on the marketplace’s regular schedule (less any potential fees imposed by Payability). For example, if your payout is $1,200 on Monday, Payability can offer you up to $1,000 on Tuesday.
The remaining balance (less Payability’s fees) will be distributed on the marketplace’s normal schedule.
Once you get approved for an Instance Access account, you will have direct access to your loan proceeds within one day. You sales will be added to your account daily, so that you can send more capital to your bank account.
Let’s look at an illustration. If Payability sets your fee at 1% and your gross sales are $10,000 in one payment period, you’ll be required to pay a $100 fee to get daily payouts.
E-commerce sellers making more than $100,000 per month can inquire about special rates.
Payability does not charge origination fees, annual fees, or application fees for their services.
If you have your eyes on getting an Instance Advance, you can look forward to getting an upfront payment for the purchase of future receivables. You will have 16 to 20 weeks to repay the proceeds. You will also be responsible for paying a weekly fee.
Advance Amount – Up to $250,000
Term of Loan – You will have 16 to 20 weeks to repay the loan
Interest Rates – The weekly fee starts at 0.50% of purchased receivables
As I stated earlier, the Instant Advance is similar to a merchant cash advance. However, there are some details you need to be aware of.
With the Instant Advance, you can get up to $250,000 to grow your business. Payability will examine your sales history carefully. This will help them calculate your future earnings.
Once this amount has been determined, you will get 80% of your predicted earnings immediately.
If your business is generating more than $100,000 per month, you can get in touch with Payability to find out about special rates.
I thought I would mention that Payability has a Loyalty Program. If you get approved for the loyalty program, you will get higher fees and lower advances.
As a customer, you can get the Payability Seller Card. This is one of the perks that come from applying for loans for Amazon sellers.
The Payablity Seller Card makes it easier for you to use your Instant Advance or Instance Access funds.
With the Payability Seller Card at your disposal, there will be no need for you to wait on bank transfers. When your payout hits your card, you can use it immediately. This includes weekends and holidays.
You can use your card online and in-person.
Did you know that you can get up to 2% cash back on your purchases? You can also get up to 20% cash back by signing up for services and software through Payablity’s partners. This includes shopkeeper, SellerCare, and many others.
Fortunately, you don’t have to go through a pesky credit check to get your Payability Seller Card.
Payability Application Process
Are you ready to get funding for your online business? First, submit your application. Payability will ask for the following: your government name, name of your business, D.O.B, social security number, contact information, and business start date.
After that, you will be asked to select your supported marketplace and funding details. Payability will ask you to connect your seller accounts. This will help them examine your business.
If you are approved, you will have your funds the next day. It’s really that simple.
- No hidden fees
- You can get a discount for paying your loan off ahead of the agreed time
- The loan proceeds are deposited fast
- The rate is higher than what you will find with traditional loans
Final Word The three lending sources above are great options for Amazon sellers that need fast funding. They offer viable loans for Amazon sellers. Take your time while reading their terms. This will help you choose the best lender for your business.