Came across an interesting article on the growth of Amazon's lending business:
Amazon loaned SMEs $3 billion since 2011, $1 billion in the past year alone | VentureBeat | Commerce | by Paul Sawers
I haven't read their filings to dig deeper- but I assume they have a massive float from the 2 week delays in seller payouts that they're using to loan to their customer's at favourable rates vs "risk-free"/bank notes.
Part of the beauty is the level of data they have on their sellers- I'm sure the algorithms are quite robust and likely good at predicting/avoiding write-offs.
So, grow your sellers sales (and your top line profits as a result), make solid returns on the interest, all with manageable risk. Nice model!
Anyone been invited to this elusive club?
Amazon loaned SMEs $3 billion since 2011, $1 billion in the past year alone | VentureBeat | Commerce | by Paul Sawers
I haven't read their filings to dig deeper- but I assume they have a massive float from the 2 week delays in seller payouts that they're using to loan to their customer's at favourable rates vs "risk-free"/bank notes.
Part of the beauty is the level of data they have on their sellers- I'm sure the algorithms are quite robust and likely good at predicting/avoiding write-offs.
So, grow your sellers sales (and your top line profits as a result), make solid returns on the interest, all with manageable risk. Nice model!
Anyone been invited to this elusive club?
Dislike ads? Remove them and support the forum:
Subscribe to Fastlane Insiders.
