Talk About Loan Sharks!
I received my yearly invite to borrow money, which I do not need.
I borrowed a few years ago from Amazon for about 4% interest and paid it off within a couple of months.
Today I opened the email just to see what was being offered.
I was shocked: 18%, 20% and 30% interest rates with a 2% origination fee and other fees.
When did Amazon get into the loan sharking business?
If you borrow money at these rates, you will quickly lose your business.
The Fed is at 5%. They borrow from the Fed at 5% straight and loan back to you at 18% compounded.
Look at the banks. You loan them your money for about 2% and they loan it back to you at 22% through credit cards and such.
I am not a financial wiz so my figures may, probably off a bit.
We do not borrow money any more except above. We were selling our home so we knew we would be able to pay it back really quick.
Our policy is no cash no fun.
And in the current economy, we have not been having a lot of fun,
Talk About Loan Sharks!
I received my yearly invite to borrow money, which I do not need.
I borrowed a few years ago from Amazon for about 4% interest and paid it off within a couple of months.
Today I opened the email just to see what was being offered.
I was shocked: 18%, 20% and 30% interest rates with a 2% origination fee and other fees.
When did Amazon get into the loan sharking business?
If you borrow money at these rates, you will quickly lose your business.
The Fed is at 5%. They borrow from the Fed at 5% straight and loan back to you at 18% compounded.
Look at the banks. You loan them your money for about 2% and they loan it back to you at 22% through credit cards and such.
I am not a financial wiz so my figures may, probably off a bit.
We do not borrow money any more except above. We were selling our home so we knew we would be able to pay it back really quick.
Our policy is no cash no fun.
And in the current economy, we have not been having a lot of fun,
36 respuestas
Seller_LVZcgxAgZ2xBv
18%, 20% and 30% interest rates with a 2% origination fee and other fees.
Might as well run up debt on a credit card. Same rates and you'll get points or cash back.
Seller_0xdtD36hDLHBC
I borrowed a few years ago from Amazon for about 4% interest and paid it off within a couple of months.
Today I opened the email just to see what was being offered.
Amazon is out of the lending business. They are outsourcing it to companies that are looking for desperate people who are willing to pay these (frankly) stupid rates.
Seller_9vW7z7iS199uk
Amazon lending used to be a pretty good deal, we used them many times. Recently, they just dumped everyone with no advance warning at all. We found out that they had closed the program from an article online, not even an email from them. Those lenders that are now taking advantage of everyone know that people borrowed amazon money to try to expand their business and likely aren't liquid to pay the whole loan back in a few months. What amazon lending did was a disgrace, hurting many accounts who were essentially working for them, trying to build the platform and their own businesses.
Seller_PIYN6z6kWpV6M
Those who truly need it are too miserable
Seller_y7K2usRrDUAe8
I mean, a payday loan isn't a new concept in this country, so are we really surprised by a 3rd party loan with a 30% interest rate lol. Granted, as bad as it sounds - sharks love feasting on the desperate.
Seller_oDXVaydIpi3Hi
I'm going to guess that was something "lost in translation" from their name.
Seller_WKQcxV8GJk5T7
Totally Agree!! You have some sound advice, hope someone listens.
Seller_NzEmZKTEdcpPZ
I agree. Amazon Lending and Marcus by Goldman Sachs that Amazon used to offer had reasonable rates. Parafin and the other lender that Amazon now outsources this to are predatory lenders. That's a real shame for a company like Amazon to get mixed up with businesses like this.
Seller_pTj1n4z2Twkii
I would personally avoid taking out a loan for our business under any circumstances. However, given the unpredictable nature of Amazon, relying solely on this platform (for your business) poses significant risks. Taking on a loan would be riskier than paying interest unless Amazon provides assurances (unlikely) that no adverse events will affect our business until the loan is repaid along with all associated obligations.
Seller_3FXAl4uehXWDl
I heard Amazon themselves is no longer in the business of Lending. They are now sending you off to others for loans. Hence high interest lending companies. In the past you actually borrowed from Amazon directly. I saw a message a few months ago that said they were getting out of Lending. Please see below
Amazon's decision to discontinue its lending program marks a significant shift for Marketplace sellers. While existing loans will be serviced, new sellers will need to explore alternative financing options.
March 6, 2024
Amazon Loan Program Discontinued
This change applies to sellers in the United States and the United Kingdom, and took effect on March 6, 2024.
