Amazon Corporate Credit Line & 6 Top Alternatives for 2019

The Amazon Corporate Credit Line is a financing option for businesses and government institutions that frequently make purchases on Amazon.com. This type of loan is best for firms that have been in business for at least two years or for owners willing to offer a personal promise to repay what they borrow.

Amazon offers two different versions of its credit line: a pay-in-full line and a revolving line. The pay-in-full line charges no interest, but requires that you pay off the balance after each billing period. The revolving line allows you to carry a balance, but you’ll pay interest to do so. Consider an alternative to these lines of credit if you want a longer interest-free period or to earn rewards.

Amazon Corporate Credit Line vs Credit Line Alternatives

How the Amazon Corporate Credit Line Works

The Amazon.com Corporate Credit Line comes in two flavors: a pay-in-full credit line that charges no interest and a revolving credit line with a fixed purchase APR that offers the option to make minimum monthly payments. The size of your firm and the time you’ve been in business will dictate which option is best for you. The APR on the revolving line is lower than the typical small business credit card charges.

The Amazon.com corporate credit line is available in the following formats:

Amazon Pay-In-Full Credit Line

The Amazon.com Pay-in-Full Corporate Credit Line charges no interest and no annual fee. You’ll have a minimum of 55 days to pay invoices in full, which is a longer period than the typical charge card offers. This type of credit line is best for large businesses and government institutions that need account management flexibility. You’ll be able to give purchasing authority to multiple employees and set up accounts for different departments or locations.

Amazon Revolving Credit Line

The Amazon.com Revolving Corporate Credit Line revolving line of credit option charges no annual fee and charges a fixed interest rate on balances carried from month-to-month. You may pay in full each month or pay 12.99% APR on unpaid balances. A revolving business line of credit is best for small and medium-sized businesses that want the flexibility to make minimum monthly payments or pay the balance in full each month.

Who the Amazon Corporate Credit Line Is Right For

The Amazon corporate line of credit is a financing choice that businesses of all sizes can take advantage of. The size of your firm and time in business will dictate which of the two options are right for you: the pay-in-full credit line or revolving credit line. Business owners will need to provide a guarantee to repay. Absent a guarantee with the pay-in-full option, the business will need to have at least two years of operations.

The Amazon corporate line of credit is best for:

• Frequent Amazon.com shoppers: The line of credit is only good for purchases at Amazon.com. You’ll have to provide your estimated monthly Amazon purchase volume when applying.
• Established businesses: You’ll need to provide a business address, number of employees and your Federal Employer Identification Number when applying.
• Owners willing to offer a personal guarantee: You’ll be given the opportunity to offer a personal promise to repay on the pay-in-full credit line option. You are required to agree to a personal guarantee on the revolving credit line option.

Apply for whichever version of the Amazon Corporate Credit Line best suits your firm’s needs. If you apply for the pay-in-full Amazon Corporate Credit Line and are denied, you still may qualify for the Amazon revolving corporate credit line.

Amazon Corporate Credit Line Costs

The Amazon Corporate Credit Line offers an option that charges no interest and one that charges a fixed rate on balances not paid in full each month. The fixed-rate APR is 12.99%. Neither option charges an annual fee nor a setup fee.

The Amazon Corporate Credit Line pay-in-full option includes the following costs:

• APR: This option charges no introductory or ongoing APR because your balance must be paid in full each cycle
• Late payment fee: 2% of the adjusted balance per month
• Returned check fee: $29

The Amazon Corporate Credit Line revolving option includes the following costs:

• Intro APR: None
• Ongoing APR: 12.99% APR for balances carried from one month to the next
• Delinquency APR: 29.99% if you fail to make a minimum payment on time, make a payment not honored by your bank, or exceed your credit limit; the delinquency APR may be applied indefinitely
• Late payment fee: Up to $39.99
• Returned check fee: $29

The Amazon corporate line of credit may be a cheaper option when compared with the best small business credit cards. Like the pay-in-full option, small business charge cards charge no interest, but they frequently come with an annual fee. The interest rate on the revolving Amazon line of credit is three percentage points or more lower than the typical small business credit card charges.

Amazon Corporate Credit Line Loan Repayment Terms

Your repayment terms depend on the type of Amazon Corporate Credit Line you choose. The pay-in-full option requires that you pay off your balance after every invoice. The revolving credit line option does not have a required pay-off date, meaning you theoretically could carry a balance forever.

With the revolving credit line, you’re required to make a minimum monthly payment. Any amount you pay over the minimum payment reduces your outstanding balance. Any remaining balance that’s not paid off before the payment due date is charged interest.

The repayment terms of the Amazon pay-in-full line of credit are:

• Repayment time: You have at least 55 days after receiving your invoice to pay your bill, which is longer than the typical 20 to 30 days most charge cards give you to pay
• Monthly minimum payments: Full balance

The repayment terms of the Amazon revolving credit line are:

• Repayment time: You are required to make minimum monthly payments that are primarily interest charges, but if you make only the minimum payment, it could take months or years to pay off your balance
• Monthly minimum payments: $50, one-twelfth of your new balance or the sum of finance charges, the late fee and 1% of your new balance, whichever is greater; if your new balance is less than $50, you must pay the balance in full

Choose the pay-in-full line of credit only if you know you’ll be able to pay off your Amazon.com balance every month. If you can’t pay in full, choose the revolving line of credit, which offers potentially smaller monthly minimum payments than a small business credit card. Credit cards typically require a payment of 2% to 4% of the balance.

Amazon Corporate Credit Line Qualifications

Amazon offers no stated minimum credit score or business revenue requirements to qualify for the Amazon Corporate Credit Line. To qualify for the pay-in-full credit line, you must be in business for more than two years or offer a personal guarantee. For the revolving credit line there is no time-in-business requirement, but a personal guarantee is always required from the business owners.

The amount of credit you qualify for is based on a number of factors, including your credit score, time in business, and annual revenue. Users have reported lines of several thousand dollars or more, with some owners saying their credit line is larger than they received on a business credit card. Although Amazon doesn’t say it requires a specific credit score, given the low rates, you may need a good credit score of 680 or higher to qualify.

The general qualifications required for a pay-in-full credit line are that your company should be in business for more than two years or you must be willing to offer a personal guarantee. Synchony Bank, which issues the line of credit, may check your business credit history.

The revolving Amazon Corporate Credit Line doesn’t require that you have been in business for a certain amount of time, but you must provide a personal guarantee to repay the loan. You also must provide a Federal Employer Identification Number when applying or your Social Security number if you are a sole proprietor.

What the Amazon Corporate Credit Line is Missing

The Amazon Corporate Credit Line can be used to make purchases on Amazon.com only. In addition, you can’t use your line of credit to make certain purchases. This includes such things as textbook rentals, subscriptions, gift cards, and software downloads.

You won’t be able to make the following purchases on Amazon.com with your line of credit:

• Cell phones associated with a plan
• Textbook rentals
• E-documents
• Games and software downloads
• Digital newspaper and magazine subscriptions
• Prime memberships
• Subscribe & Save and recurring delivery orders
• Print at home and email Amazon.com gift cards

A small business credit card or other credit line options may not restrict you from making certain purchases on Amazon.com. If your business budgets for significant spending in one of the restricted categories, you may want to consider another form of payment for your Amazon.com purchases.

Amazon Corporate Credit Line Reviews

Nearly 200 users of the pay-in-full and revolving Amazon Corporate Credit Lines have reviewed the product, offering mostly positive reviews. Users say the APR on the revolving line of credit is low when compared with other payment options and they like that responsible use helps build business credit. Users with negative reviews say the invoicing process can be cumbersome and Synchrony Bank (the issuing bank) customer service needs to be improved.

How to Get an Amazon Corporate Credit Line

Apply online for the Amazon corporate line of credit. You should be able to complete the application process within 10 minutes provided you have information like your tax identification number on hand. If you’re not approved immediately, you may receive a decision within seven to 10 business days. The credit line generally is available for use shortly after approval.

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How We Evaluated Amazon Corporate Credit Line Alternatives

When evaluating the top Amazon Corporate Credit Line alternatives for small-business owners, we considered cost, loan terms, qualification requirements, and the application process. We looked to both small business credit cards and lines of credit that may be good alternatives for businesses seeking short-term capital for purchases at Amazon.com and elsewhere.

Based on the needs and wants of small-business owners, the criteria we used to evaluate the top Amazon Corporate Credit Line alternatives include:

• Total cost: How much each Amazon Corporate Credit Line alternative costs, including rates, fees, and APR.
• Loan terms: How long you will have to repay the amount you borrowed and how often you will be making payments.
• Qualification requirements: Minimum qualifications required by the provider including such things as your personal credit score, time in business, and annual revenue.
• Application and funding speed: Length of application, how long it takes to get approved, and when funding is available.

We tested these criteria on half a dozen different lenders and found the Amazon Business Prime American Express Card offers the best alternative to the Amazon Corporate Credit Line. This small business credit card offers either 90 days free financing or 5% back on all Amazon.com spending.

Amazon Business Prime American Express Card: Best Amazon Corporate Credit Line Alternative for Earning Rewards

The Amazon Business Prime American Express Card is best for owners who want to earn 5% cash back or 90-day free financing on U.S. purchases at Amazon-owned companies, including Amazon.com. If you choose rewards over the free financing, your ongoing APR will be as low as 16.49%. This is more than three percentage points higher than the Amazon corporate line of credit charges.

Amazon Business Prime American Express Card vs Amazon Corporate Credit Line

Both the Amazon Business Prime American Express Card and the Amazon Corporate Credit Line are open-ended loans. This means you can continue to use your line of credit indefinitely as long as you repay what you borrow plus any interest or fees. The Amazon Business Prime American Express Card offers ongoing rewards and allows users to charge non-Amazon purchases, while the Amazon Corporate Credit Line does not offer rewards.

Prime members will earn a $125 Amazon gift card at sign-up with the Amazon Business Prime American Express Card. You’ll also earn 5% cash back on Amazon business purchases, 2% back on purchases at U.S. restaurants and gas stations, and on wireless telephone services purchased directly from U.S. service providers. All other eligible purchases earn 1% back.

Amazon Business Prime American Express Card Rates & Fees

The Amazon Business Prime American Express Card charges no annual fee, but you must be an Amazon Prime or Business Prime member to take advantage to the 90-day free financing. Your APR adjusts with the prime rate. Owners with credit scores of 750 or higher will qualify for the lowest rates.

The typical Amazon Business Prime American Express rates and fees are:

• Introductory APR: None, although users can receive 0% APR for 90 days on purchases from Amazon businesses
• Ongoing APR: Variable rate of 16.49% to 24.49%, which adjusts with the prime rate
• Annual fee: None, but you must be an Amazon Prime or Business Prime member to take advantage of the 90-day free financing. Prime memberships start at $119 per year.

If your personal credit is lower than 750, you may not qualify for the lowest APR on this card’s range. This could make your financing costs significantly higher with the Amazon Business Prime American Express Card when compared with the Amazon corporate line of credit.

Amazon Business Prime American Express Card Loan Terms

The Amazon Business Prime American Express Card is a small business credit card, which means this is a revolving loan. You’re required to make minimum payments each month. Any amount you pay over the minimum payment reduces your outstanding balance. Any remaining balance that’s not paid off before the payment due date is charged interest.

The repayment terms of the Amazon Business Prime American Express Card are:

• Repayment time: You are required to make minimum monthly payments that are primarily interest charges, but if you make only the minimum payment, it could take months or years to pay off your balance; you may choose 90-day interest-free financing if you’re a Prime member
• Monthly minimum payments: The higher of $35 or the interest charged on the statement plus 1% of the total balance excluding any over limit amount and penalty fees

The Amazon.com Corporate Credit Line does not offer interest-free financing (it offers rewards instead), although you’ll have at least 55 days after the close of the statement period to repay the pay-in-full line balance. Your minimum payment on the revolving Amazon line also may be higher than this American Express card charges.

Amazon Business Prime American Express Qualifications

There are no stated minimum credit score requirements for the Amazon Business Prime American Express Card. Small business credit cards like the Amazon Business Prime American Express Card often require a personal credit score of 680 or higher. You don’t need to prove business revenue in order to qualify for this card, nor do you have to show your time in business.

Like most small business credit cards, you are required to make a personal guarantee to repay. Your credit limit will be based on a number of factors, including your personal credit score and the amount of debt you carry.

What Amazon Business Prime American Express Card Is Missing

The Amazon Business Prime American Express Card may be a more expensive financing option than the Amazon business line of credit. The ongoing APR is between three and 11 percentage points higher than what the Amazon business line of credit charges on its revolving line option.

Amazon Business Prime American Express Card Reviews

We searched for online reviews of this relatively new credit card and found just a few, but they were mostly positive. Users say the application process is quick and the customer service is noteworthy. Some users complain about financing costs and low credit limits — just $500 in one case.

How to Apply for Amazon Business Prime American Express Card

Apply at Amazon.com for the Amazon Business Prime American Express Card. You may receive an instant answer regarding your application. If approved, cards arrive within seven to 10 business days.

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American Express Blue Business℠ Plus: Best Amazon Corporate Credit Line Alternative for Free Financing

The American Express Blue Business℠ Plus is a small business credit card that is best for businesses that need to finance Amazon.com or other purchases for a year or longer. It offers a 0% introductory APR for 12 months on purchases and balance transfers. The ongoing APR is as low as 13.49%, which is just half a percentage point higher than the Amazon Corporate Credit Line revolving loan offers.

American Express Blue Business℠ Plus vs Amazon Corporate Credit Line

Both of these options offer free financing opportunities, but the Amazon Corporate Credit Line offers just a 55-day window to repay your full loan. The American Express Blue Business^SM Plus offers 12 months of free financing on both purchases and balance transfers.

The American Express credit card also allows you to use credit to make purchases outside of Amazon.com, unlike the Amazon Corporate Credit Line. In addition, you’ll earn rewards with the American Express Blue Business℠ Plus — 2x Membership Rewards points on all spending up to $50,000 annually, then 1x points thereafter.

American Express Blue Business℠ Plus Rates & Fees

The American Express Blue Business℠ Plus charges no annual fee, and offers free financing on purchases and balance transfers for you first 12 months of card ownerships. Your ongoing APR adjusts with the prime rate. To qualify for the best interest rate, you may need a personal credit score of 750 or higher.

The typical American Express Blue Business℠ Plus rates and fees are:

• Introductory APR: 0% for 12 months on purchases and balance transfers
• Ongoing APR: Variable rate of 13.49% to 21.49%, which adjusts with the prime rate
• Annual fee: None

If your personal credit is below 750, you may not qualify for the lowest APR on this card’s range. This could make your financing costs after the introductory APR period as much as eight percentage points higher when compared with the Amazon corporate line of credit.

American Express Blue Business℠ Loan Terms

The American Express Blue Business℠ Plus is a small business credit card, which means your line of credit is a revolving loan. You’re required to make minimum payments each month. Any amount you pay over the minimum payment reduces your outstanding balance. Any remaining balance that’s not paid off before the payment due date is charged interest after the introductory APR period expires.

The repayment terms of the American Express Blue Business℠ Plus are:

• Repayment time: You are required to make minimum monthly payments; if you make only the minimum payment, it could take months or years to pay off your balance
• Monthly minimum payments: The higher of $35 or 1% of the portion of the balance less than or equal to $25,000, 5% of the portion of the balance greater than $25,000 and 10% of the portion of the balance greater than $75,000

The Amazon.com Corporate Credit Line does not offer interest-free financing, although you’ll have at least 55 days after the close of the statement period to repay the pay-in-full line balance. Your minimum payment on the revolving Amazon line also may be higher than this American Express card charges.

American Express Blue Business℠ Plus Qualifications

There are no stated minimum credit score requirements for the American Express Blue Business℠ Plus. Small business credit cards like this one often require a personal credit score of 680 or higher. You don’t need to prove business revenue in order to qualify for this card, nor do you have to show your time in business. The issuer will use your personal credit score to determine eligibility.

What American Express Blue Business℠ Plus Is Missing

You’ll earn fewer rewards on Amazon purchases than with the Amazon Business Prime American Express Card — 2x Membership Rewards points versus 5% cash back. Plus, the 2x rewards points are only good on spending up to $50,000 annually. These differences could make a big difference in your rewards-earning power, particularly if you’re a frequent Amazon.com user.

American Express Blue Business℠ Plus Reviews

We examined user reviews of the American Express Blue Business℠ Plus at numerous websites and found mostly positive responses. Users say they like that American Express pays fixed-rate rewards on all spending. Some users complain about the lack of introductory rewards, something no other lender on our list offers.

How to Apply for American Express Blue Business℠ Plus

Apply for the American Express Blue Business℠ Plus credit card directly on the issuer’s website. If approved, the 12-month introductory APR period starts as soon as you receive your 0% business credit card.

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BlueVine: Best Amazon Corporate Credit Line Alternative for a Spending Outside Amazon.com

BlueVine is an online provider of lines of credit of $5,000 to $250,000 with payment terms of six to 12 months. Owners need a minimum credit score of at least 600 to qualify. If you need an unsecured business line of credit for spending at Amazon.com and beyond, this is a good option since you have up to a year to repay and you can reuse the principal as often as it’s repaid.

BlueVine vs Amazon Corporate Credit Line

Unlike with the Amazon corporate line of credit, BlueVine funding is available for use at more than just Amazon.com. You may use the line of credit at Amazon.com when you choose to be billed via invoice. BlueVine requires you to fully pay back your loan in either six or 12 months.

Since you have longer to repay the funds you borrow using the BlueVine line of credit, it frees up your cash flow temporarily to deal with short-term funding needs.

It’s often a good idea to have both a credit card (or a credit line such as that offered by Amazon) a small business line of credit. However, you need to make sure you have sufficient cash flow to pay them both back within the required repayment terms. Otherwise, you could end up overextended and in financial trouble.

Your costs may be significantly higher with BlueVine than with Amazon. BlueVine charges simple interest starting at 4.8% for 26 weeks. Amazon offers an option that charges no interest or one that comes with an APR of 12.99%. The extra cost may be worth it to some businesses because you may have longer to repay.

BlueVine Rates & Fees

BlueVine charges both an origination fee and weekly interest, but you won’t get hit with a prepayment penalty if you repay your line of credit early. You get to choose either six or 12 months for your repayment terms.

The typical BlueVine rates and fees are:

• Interest: Starting at 4.8% for 26 weeks (roughly 16% – 62% APR)
• Origination fee: 1.5% draw fee

Although interest is computed weekly, it’s equal to an APR that can be significantly higher than you’d pay with an Amazon corporate line of credit. The typical BlueVine customer should expect to pay a weekly average rate of 0.7%. This equates to an APR of 36.4%.

BlueVine Loan Terms

BlueVine lines of credit are built for businesses wanting access to capital for short-term purposes and are able to repay their loans in a year or less. As such, this isn’t a good alternative if you only need a line of credit for Amazon.com purchases or you have long-term capital needs.

BlueVine offers business lines of credit with the following terms:

• Maximum business line of credit: $250,000
• Repayment time: Either six or 12 months
• Payment schedule: Monthly for 12-month loans or weekly for six-month loans

In order to qualify for a BlueVine line of credit, you will need to agree to a personal guarantee to repay and a blanket UCC filing on business assets. Because this is a revolving loan, you can repeatedly borrow money throughout the term as many times as you pay it back minus interest and fees.

BlueVine Qualifications

Unlike Amazon, BlueVine has stated credit score and business revenue requirements. But you may be able to qualify for a BlueVine loan more easily if you’re a newer business than you would with Amazon.

BlueVine’s minimum qualifications include:

• Credit score: 600 or higher (check yours for free) for a six-month term, 650 or higher for a 12-month term
• Time in business: At least six months
• Annual revenue: At least $100,000 for a six-month term, at least $500,000 for a 12-month term

In addition to these minimum qualifications, you’ll also need to provide BlueVine with access to three months of your most recent bank statements. Amazon does not make this requirement on either of its types of lines of credit. BlueVine, like Amazon.com, requires a personal guarantee.

What BlueVine Is Missing

Although BlueVine offers a revolving line of credit, you have a fixed time to use and repay the money you borrow. This is a short-term way to get funding with terms of six or 12 months. If you need an ongoing line of credit beyond 12 months, you may want to consider a small business credit card or a line of credit that doesn’t have to be repaid over a certain time frame.

BlueVine Reviews

We sought out BlueVine user reviews from around the web. This lender generally receives high marks. Satisfied users say they are impressed with BlueVine’s customer support service. Negative reviews typically came from businesses unhappy their funding requests were denied even if the owner met the qualification requirements.

How to Apply with BlueVine

You can apply for a BlueVine line of credit via its online application in just 10 minutes. When approved, you can get funded as soon as the next day for a line of credit of $5,000 to $250,000.

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OnDeck Capital: Best Amazon Corporate Credit Line Alternative for Prime Borrowers

Although OnDeck Capital offers lines of credit to borrowers with credit scores as low as 600, this lender’s line of credit is best for owners with a prime credit score of at least 700 who need a credit line for spending both at Amazon and elsewhere. With a high personal credit score, you can qualify for an APR as low as 13.99%.

OnDeck Capital vs Amazon Corporate Credit Line

Ondeck Capital offers a line of credit for up to six months with payments due weekly. This line of credit is best for extremely short-term borrowing — like a one-time large order from Amazon.com. You may be able to secure a much higher line of credit with OnDeck Capital than with Amazon.

It’s often a good idea to have both a credit card (or a credit line such as that offered by Amazon) and a small business line of credit. However, you need to make sure you have sufficient cash flow to pay them both back within the required repayment terms. Otherwise, you could end up overextended and in financial trouble.

Plus, if you need three months to three years to repay — like to take advantage of an inventory bargain or for equipment purchases — you can get a term loan from OnDeck, too.

OnDeck Capital Rates & Fees

OnDeck charges interest on its line of credit, but you won’t pay an origination fee. The lender charges a monthly maintenance fee that it waives if you draw at least $5,000 within five days of account opening.

The typical OnDeck Capital rates and fees are:

• Interest: Expected APR of 30% to 50%
• Origination fee: None
• Monthly maintenance fee: $20 (waived for six months if you draw at least $5,000 within five days of account opening)

Like Amazon, OnDeck provides interest rates on an annual basis. The typical customer for an OnDeck line of credit should expect to pay 29% APR, which is significantly higher than the 12.99% APR Amazon charges for its revolving line of credit. It’s weighted average interest rate is 48.7% as of June 2018.

OnDeck Capital Loan Terms

OnDeck lines of credit are meant for businesses with short-term capital needs that will repay their loans in six months or less. This lender isn’t a good choice for long-term financing. If you need longer to repay, OnDeck also offers a term loan. Read more about OnDeck’s term loans in this article about the best loans from OnDeck and Kabbage.

OnDeck Capital offers business lines of credit with the following terms:

• Maximum business line of credit: $100,000
• Repayment time: Up to six months
• Payment schedule: Weekly

Unlike Amazon, your OnDeck Capital payment is due weekly. Amazon requires monthly payments.

OnDeck Capital Qualifications

OnDeck Capital has stricter time-in-business requirements than BlueVine, but they’re still more lenient than the Amazon corporate line of credit with the pay-in-full option. You’ll have to show OnDeck you’ve been in business for at least a year and provide a personal guarantee and a blanket UCC filing on business assets, while Amazon requires two years or a personal guarantee.

OnDeck Capital’s minimum qualifications include:

• Credit score: 600 or higher (check yours for free)
• Time in business: At least 12 months
• Annual revenue: At least $100,000 in the past 12 months

Meeting these minimum requirements probably won’t be enough to guarantee you Ondeck Capital’s best rates or highest available line of credit. You will need a higher credit score, longer time in business, and higher annual revenue to borrow the maximum at a lower cost.

What OnDeck Capital Is Missing

OnDeck Capital’s weighted average interest rate is 48.7% as of June 2018. That’s significantly higher than you’d pay with either Amazon Corporate Credit Line option. Prime borrowers can expect to pay about one percentage point higher on loans from OnDeck when compared with the Amazon corporate line of credit.

OnDeck Capital Reviews

We searched across the web for OnDeck Capital user reviews and found this lender has mainly positive ratings. Satisfied users say the application and funding process is fast and uncomplicated. Users who offered a negative review said the lender’s interest rates are too high and its fees uncompetitive when compared with other lenders.

How to Apply with OnDeck Capital

You can pre-qualify for a line of credit in as little as 10 minutes by applying at Ondeck Capital. The lender offers lines of credit of up to $100,000 with a six-month repayment term.

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Kabbage: Best Amazon Corporate Credit Line Alternative for Funds Access Using the Kabbage Card

Kabbage is best for businesses that need a line of credit up to $250,000, which is larger than you’re likely to get with all but BlueVine. This line of credit is more convenient to use on Amazon purchases than other options by using your Kabbage Card, which is connected to your line of credit. Each draw on your line of credit is considered a new loan repayable within a year with costs starting at 1.5% per month.

Kabbage vs Amazon Corporate Credit Line

Kabbage offers a line of credit for up to year with payments due monthly. This line of credit can be used to pay for Amazon.com or other purchases directly with your Kabbage Card for purchases of as little as $1. The expected APR of 30% to 50% is significantly higher than you’ll pay with the Amazon Corporate Credit Line, so this type of financing probably should be an option only if you need a big line of credit.

Kabbage Rates & Fees

OnDeck charges interest on its line of credit, but you won’t pay an origination fee or a monthly maintenance fee like OnDeck Capital charges if you don’t make an initial draw of at least $5,000. There’s also no prepayment penalty for paying off your line early.

The typical Kabbage rates and fees are:

• Interest: Starting APR is 18%, with and expected APR range of 30% to 50%
• Origination fee: None

Unlike Amazon, Kabbage provides interest rates on a monthly basis. The typical customer for a Kabbage line of credit should expect to pay at least 30% APR, which is significantly higher than the 12.99% APR Amazon charges for its revolving line of credit. Even though the APR is higher, you can reduce your financing costs by paying off advances sooner.

Kabbage Loan Terms

Kabbage lines of credit are meant for businesses with big-money capital needs. Loans must be repaid within a year, but every time you draw down on your line of credit, it’s considered a new loan. This could be a decent option for ongoing Amazon purchases or other long-term needs.

Kabbage offers business lines of credit with the following terms:

• Repayment time: Six months or a year
• Payment schedule: Monthly (one-sixth or one-twelfth of the loan advance plus interest amortized over six or 12 equal payments of principal plus interest)

Each draw from your line of credit is considered an independent six- to 12-month loan, which means you can continue to use this line for long-term capital needs. A personal guarantee to repay is required, as is a blanket UCC filing on business assets. You’ll also need to provide a personal guarantee on the Amazon Corporate Credit Line if you’ve been in business for less than two years or choose the revolving option.

Kabbage Qualifications

Kabbage has a minimum credit score requirement that’s lower than OnDeck Capital and some other options on this list, which could make this a decent alternative for business owners with damaged credit. Still, this line of credit isn’t open to new businesses, as it has both a time-in-business requirement and an annual revenue requirement.

Kabbage’s minimum qualifications include:

• Credit score: 550 or higher (check your score for free)
• Time in business: At least one year
• Annual revenue: At least $50,000 or at least $4,200 a month for the past three months

Meeting these minimum requirements probably won’t be enough to guarantee you Kabbage’s best rates, which are already fairly high compared with other loan options on this list.

What Kabbage Is Missing

Kabbage charges high interest relative to the Amazon Corporate Credit Line. You’ll pay the equivalent of 30% to 50% APR on each loan, which is significantly higher than the 12.99% APR you could be charged with the Amazon corporate line of credit. You may also want to consider one of Kabbage’s top competitors.

Kabbage Reviews

We found numerous Kabbage user reviews online. Users offer mostly positive experiences with this line of credit. Those who gave positive reviews said customer service was easy to navigate. Negative reviews focused on the lender’s high interest rates and short repayment terms.

How to Apply with Kabbage

You can complete Kabbage’s online application within 10 minutes and receive funding 24 hours after applying and winning approval. You’ll receive a line of credit up to $250,000 at a rate of 1.5% to 10% per month.

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Payability: Best Amazon Corporate Credit Line Alternative for Amazon Sellers

Payability isn’t a loan, but it offers businesses that sell on Amazon the ability to turn your twice-monthly Amazon payments into daily payments. Use that increased cash flow to fund your business or make your own Amazon inventory buys. Payability charges a flat monthly rate of 1% – 2% fee of your gross Amazon sales. Payability also offers an advance on future invoices of up to $250,000.

Payability vs Amazon Corporate Credit Line

Payability gets your own money to you faster, while the Amazon Corporate Credit Line is a loan. Payability requires no repayment since it’s your money, but just like the Amazon Corporate Credit Line, it could help with your cash flow. Funding is based on your daily Amazon sales, but use your Payability funds any way you like. Your Amazon Corporate Credit Line must be used for Amazon.com purchases.

Payability Rates & Fees

With Payability, you’ll receive payments for your Amazon.com sales daily instead of twice a month. There are no set-up fees, transaction fees, or monthly fees. You’ll pay 1% – 2% of your total Amazon sales to receive early payments.

If you have cash flow needs, but don’t want or need a loan, Payability could offer an alternative to a line of credit. You’ll pay no interest and there’s no principle to pay off because this isn’t a loan.

Payability Loan Terms

Payability deposits your Amazon sales income into a bank account daily. You’ll get 80% of your daily Amazon revenues deposited into a bank account or onto a prepaid Mastercard. The company holds 20% in reserve to cover returns or chargebacks. What’s left in reserve will be released to you on Amazon’s regular 14-day payment schedule.

Payability Qualifications

To qualify for Payability, you must have sold on Amazon for more than 90 days and average at least $2,000 in monthly sales. Since this isn’t a loan, there are no credit score requirements and there is no credit check.

What Payability Is Missing

Payability is an advance on your daily sales revenues, not a loan. If you need additional capital — not just better cash flow — Payability isn’t right for you. Consider one of the other options on our list, but keep in mind that nearly all of the lines of credit we highlighted come with costs greater than the 1% – 2% you’ll pay for using Payability. Learn more in our article about alternative funding options to Amazon Lending.

Payability Reviews

We found hundreds of Payability online reviews, and most are glowing. Users say the customer service is excellent and they appreciate getting paid sooner for their Amazon sales. Those who gave negative reviews said they disagreed with holding so much of the daily revenue in reserves; others said they’ve had their reserves held for longer than promised.

How to Apply with Payability

You can complete Payability’s online application process and get funded within the same day. There are no credit checks required, and you can apply for an instant advance of up to $250,000.

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Pros and Cons of the Amazon Corporate Credit Line

The Amazon Corporate Credit Line allows users to access a line of credit to pay for Amazon.com purchases. You can apply for either a pay-in-full credit line that requires you to pay your bill in full each cycle or a revolving line that allows you to carry a balance indefinitely. The Amazon corporate line of credit is ideal for regular Amazon.com shoppers, but cannot be used to make purchases outside the online retailer.

Pros of the Amazon Corporate Credit Line

Some of the pros to consider with the Amazon Corporate Credit Line are:

• Many businesses can benefit: Amazon offers credit lines tailored for businesses large and small. Choose the revolving line of credit for easier credit approval for small businesses or the pay-in-full line for larger businesses that need flexible spending controls.
• Fees are low: You’ll pay no interest or annual fee with the pay-in-full option and an APR of just 12.99% with the revolving line. That APR is lower than most business credit cards charge and considerably cheaper than other lines of credit.
• Extra time to repay: If you qualify for the pay-in-full option, you’ll have a minimum of 55 days from invoice to repay your balance. That’s a longer net repayment time than most other options on our list.

Cons of the Amazon Corporate Credit Line

Some of the cons to consider with the Amazon Corporate Credit Line are:

• Good for Amazon purchases only: The Amazon corporate line of credit can only be used to purchase goods on Amazon.com. This is an inflexible option if you need access to credit to purchase goods and services outside of the online retailer.
• There are Amazon purchasing restrictions: There are certain products on Amazon.com itself that you can’t use your corporate line of credit to purchase, including games and digital magazine subscriptions.
• You’ll earn no rewards: Other options on our list allow you to earn up to 5% back on Amazon purchases. The Amazon Corporate Credit Line offers no rewards. If you use a small business credit card that offers rewards for Amazon purchases — and you pay off your bill in full each month — you’ll earn a handsome return.

If you need short-term financing for both Amazon purchases and other goods and services your company needs, consider opening both an Amazon Corporate Credit Line and a credit card like the American Express Blue Business℠ Plus, which pays 2x points per dollar spent on all purchases, up to $50,000 annually.

Amazon Corporate Credit Line Frequently Asked Questions (FAQs)

This article compares the Amazon Corporate Credit Line with a half dozen alternatives, including other lenders’ credit lines and small business credit cards tailored to Amazon spending. Below, we’ll answer some of the most frequently asked questions about the Amazon credit. If you have further questions, please visit our Fit Small Business forum and we’ll provide an answer.

The most frequently asked questions about the Amazon Corporate Credit Line are:

What is the Amazon Corporate Credit Line?

The Amazon Corporate Credit Line allows businesses to finance Amazon purchases over time. You can apply for either a pay-in-full line of credit that requires full payment at least 55 days after you’re invoiced or a revolving line that allows you to carry a balance and pay interest.

Does Amazon have a business credit card?

Amazon offers the Amazon Business Prime American Express Card, which pays 5% back on Amazon.com spending. Amazon Prime members could opt instead to 90 days of free financing on Amazon purchases.

Does the Amazon Store Card build credit?

The Amazon Store Card is a personal credit card. The issuer, Synchrony Bank, reports payment information to consumer credit bureaus. With responsible use, you could build credit using your Amazon Store Card. Conversely, late payments will have a negative effect on your credit.

Bottom Line

The Amazon Corporate Credit Line is an inexpensive financing option for both small and large businesses that frequently make business purchases at Amazon.com. Qualification requirements vary based on whether you apply for a pay-in-full line of credit or a revolving line, which allows you to carry a balance from month to month.

If you’d prefer to earn rewards on your Amazon.com purchases, consider the Amazon Business Prime American Express Card, which offers 5% cash back on Amazon business purchases, 2% back on purchases at U.S. restaurants and gas stations, and on wireless telephone services purchased directly from U.S. service providers.

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