Amazon to roll out business loan service to eight countries
Online retailer looks to credit services to capture Marketplace vendors
Online retail giant Amazon is to launch its business loan scheme for third-party sellers in eight countries, including China, later this year, Reuters reported.
Currently only available in the US and Japan, Amazon Lending is designed to combat credit stumbling blocks and help Amazon sign up more Marketplace sellers.
The service will be launched in Canada, China, France, Germany, India, Italy, Spain and the UK, on an invitation basis, and is not available to all Amazon Marketplace operators.
Other online retailers including eBay's PayPal and Alibaba, also run third-party marketplaces, and are also looking at credit services to capture vendors.
But some credit industry insiders believe the lending facilities are risky without more information about the markets in which the borrowers operate, especially regarding the failure rates for SMEs in some economies.
But Amazon believes it is in a position to thoroughly assess borrowers through its internal transaction data and loan payments will be taken from the proceeds of sales.
"We know a lot about our sellers' business and invite only those who we think are in the best position to take capital and grow," said Peter Faricy, head of Amazon Marketplace.