Amazon’s Fulfilled by Amazon (FBA) business model has made it possible for entrepreneurs and retailers to easily set up their e-commerce shops and earn some good money. 

To ensure that your Amazon business thrives in this increasingly competitive niche, you need to expand your business operations and increase your product inventory. 

New york, USA – march 15, 2019: Amazon seller application on smartphone screen close up view

And expanding means, you’ll need working capital. Getting the funds you need to grow your Amazon business can be challenging unless you have thousands of dollars sitting around in your bank account.  

Fortunately, there are various ways to obtain Amazon sellers working capital to scale your e-commerce business. 

  1. Family And Friends

For most entrepreneurs, perhaps the most obvious way to get enough funds is to borrow from their family or close friends. The main advantage of your relationship is that you don’t have to pay high interest or fees.   

Unfortunately, the capital you get from your family and friends may not be enough to cover the costs of your investments. Also, including your personal affairs with your business pose a great risk. Failing your business and being unable to pay your debt can cause a rift in your relationship. 

So, think long and hard if you should ask your family or close friends and whether your relationship can withstand the possible risks that go with the business and lending. 

  1. Credit Cards And Bank Loans

This is probably one of the common options for securing working capital to grow your Amazon business. You can ask your bank or review what credit you may qualify as a small Amazon business owner. 

Today, most credit cards offer lower interest rates and good incentives to help small business owners start or grow their businesses. Banks can also provide loans for small businesses, depending on the number of years in business and personal credit score

Take note, however, that credit card providers may not provide the high limits you need to increase your Amazon inventory levels. Moreover, it may leave you with long-term balances as you wait for customer payments on Amazon to roll in. 

That said, it’s recommended that bank and credit loans should be used as a short-term solution only.

  1. Merchant Cash Advance

A merchant cash advance is one of the most suitable options for Amazon sellers because most payments are made through credit cards.   

For this funding method, an Amazon seller can get an upfront lump sum in exchange for a slice of their future credit card sales. Or you can get upfront cash that’s repaid by remitting fixed weekly or daily debits from your bank account. In general, you’ll be charged a fixed interest and fee as well.   

In addition, applying for an MCA is less stressful than a traditional loan. You’re required to provide less documentation and paperwork, and there’s no need to undergo a credit check or provide any collateral. 

So, even if you have a low credit score, have no previous business experience, or have been bankrupt before, you can still get approved for an MCA. 

Unfortunately, MCA charges high-interest rates and fees than other funding options. Unless you have an established Amazon business, it can be challenging to meet the repayment schedule. Plus, there are no advantages in making early repayments. Since the repayment amount is defined in advance, you won’t save interest even if you pay the loan earlier than agreed on. 

  1. Amazon Reimbursements

This is a great hack you can take advantage of to increase your working capital. When selling on Amazon, discrepancies are normal, affecting 1 to 3% of a seller’s inventory. 

These discrepancies include lost, disposed, or destroyed inventory and overcharges on Amazon fees. An Amazon seller may qualify for reimbursements on such discrepancies. 

After an Amazon audit, a seller can make claims and file for reimbursements. Once recovered, you can use this capital to scale your Amazon business. 

  1. Amazon Account Receivables Factoring

Factoring refers to a financing process where a business sells its unsettled receivables to a factoring company. 

In general, Amazon transfers your sales earnings to your bank account every two weeks. However, it can take several weeks until you receive that money. 

If you work with a factoring provider, you can receive that amount right away within a day or two. They take a small percentage of the receivable as a fee and reserve. Once your outstanding receivable has been settled, you’ll get your reserve back.   

Factoring provides you easy and quick access to funds, making it a great long- or short-term solution. However, since the repayments of the reserves depend on the customers settling outstanding payments, costs won’t be in your control. 


To expand the operations and offerings of your Amazon business, you’ll need enough funds to cover the cost. If you don’t have extra working capital, you can choose a funding method from the above list to raise the money you need to grow your Amazon business and become successful.