Overview

Amazon has partnered with fintech provider ParaFi to embed a merchant cash‑advance (MCA) product directly inside Seller Central. The new offering lets qualified third‑party sellers request up to $5 million, with repayment tied to a percentage of their future sales rather than fixed monthly installments. Sellers who rely on rapid inventory purchases or seasonal spikes should watch this development because it adds a flexible financing option that stays within the Amazon ecosystem.

Key Points

• Integrated MCA option — The advance application lives under the Growth tab, so sellers never need to leave Seller Central to start the process.
• Funding ceiling of $5 M — Eligible accounts can receive a lump‑sum ranging from a few thousand dollars to five million, depending on sales history and account health.
• Revenue‑linked repayment — Repayment is calculated as a set percentage of daily sales, causing payments to rise when sales are strong and fall during slower periods.
• Eligibility driven by performance metrics — Amazon evaluates account health, recent sales velocity, and overall marketplace compliance before presenting the offer.
• Higher effective cost than traditional loans — The advance uses a factor‑rate model, which can translate into a larger total repayment amount compared with standard term loans.
• Targeted at mid‑size to large sellers — The program is designed for businesses that generate predictable revenue streams and need sizable capital quickly.

How Merchant Cash Advances Work

1. Eligibility Check — A seller logs into Seller Central, opens the Growth tab, and clicks the “Financing” tile. The system instantly reviews the seller’s account health score, last 12‑month sales volume, and compliance record.
   Example: A seller with a 98 % order defect rate, $350 k average monthly sales, and a 30‑day shipping performance of 99 % receives a green light and sees a preview of a $750 k advance.

2. Advance Offer Presentation — ParaFi displays a customized offer that includes the advance amount, the factor rate (e.g., 1.30), and the repayment percentage (e.g., 12 % of daily net sales). The seller can adjust the requested amount within the suggested range. The same seller selects a $1 M advance, sees that the total repayment will equal $1.3 M (factor rate 1.30), and that daily repayments will be 12 % of net sales.