Originally posted on: https://www.marketwatch.com/press-release/bitx-funding-extends-3-million-line-of-credit-to-amazon-seller-2020-05-04
FAIRFIELD, Conn., May 4, 2020 /PRNewswire via COMTEX/ — FAIRFIELD, Conn., May 4, 2020 /PRNewswire/ — BitX Funding, the online lending marketplace known for matching small-business owners with optimal, non-bank lenders, is facilitating expansion for Amazon third-party (3P) sellers.
Fulfill by Amazon (FBA) sellers have a tremendous opportunity to grow with the online economy. According to Planet Retail RNG, “Amazon 3P sellers already account for over 50% of Amazon sales; it is predicted that by 2022 Marketplace sellers will account for $130 Billion of the total gross merchandise value.” Yet, financing is not easily supported through Amazon’s seller central and the business-lending environment is complex for Amazon FBA sellers looking to level up. While turnkey operations leverage warehousing and sales for online sellers, the process of FBA fulfillment does not substantiate the collateral (and other qualifications) required by traditional lenders. Add Amazon’s invitation-only loan option and inventory credit cap, and you have more obstacles to growth for third-party sellers.
“BitX Funding is committed to helping Amazon power sellers by providing the funding needed to take their e-commerce business to the next level,” said Todd Rowe, President of BitX Funding. “Amazon sellers start off with an Amazon Working Capital Loan, but over time they hit a wall as their growth is capped at $1 million in financing. The business owner may borrow from friends or family or obtain Merchant Cash Advances, which come at a price. It’s a chicken or egg situation for sellers; they can’t grow without inventory, and they can’t get inventory without capital.”
Amazon’s platform allows small business owners to reach millions of clients and increase revenue with new streams of business. The BitX Funding platform offers a transparent lending and frictionless approval process for business owners to tap financing for additional inventory. Rowe adds, “Large banks and other lenders don’t recognize the assets of 3P sellers, as their inventories sit with Amazon. Our lenders see it differently, so we recommend online sellers put in an application with BitX Funding to access funds for unlimited growth.”
Since 2013, BitX Funding has generated over $50 million in financing for small businesses nationwide by breaking down the barriers of traditional banking. Todd Rowe, President of BitX Funding, is an experienced non-bank lender within the fintech universe whose corporate initiatives support his mission of galvanizing the economy of small businesses. The high-speed trajectory of the Amazon Marketplace is a segment that has been under-resourced. BitX Funding can accelerate financing and working capital for FBA sellers.
By Nancy Klaiman Prentice / The Next Write