Overview

Amazon offers an automated repayment service for select financing options available through its lending program. This service automatically applies a portion of your Amazon sales proceeds toward loan payments owed to your financing provider. For sellers who use Amazon's lending options, understanding how this repayment mechanism works is essential to managing cash flow and staying current on financing obligations.

Key Points / What Sellers Need to Know

• Automated deductions from sales proceeds — When you enroll in an eligible financing option that includes automated repayment, Amazon will automatically direct a portion of your disbursement toward your loan payment before sending the remaining balance to your bank account.
• Enrollment is tied to your financing option — You cannot sign up for automated repayment as a standalone service. It is only available when you select an eligible financing offer that includes it.
• You cannot opt out mid-loan — Once you enroll in a financing option with automated repayment, the service remains active for the entire duration of your loan. It only ends when the loan is fully paid off.
• Insufficient funds are your responsibility — If your sales proceeds do not cover the financing payment due, you are still responsible for making that payment directly to your financing provider.
• Better terms may be available — Financing providers may offer more favorable rates, larger loan amounts, or longer repayment periods when automated repayment is enabled, since it gives them greater confidence in timely repayment.

How Automated Repayment Works

When a financing payment is due, your lending provider notifies Amazon of the upcoming payment amount. On your scheduled sales proceeds disbursement date, Amazon automatically deducts the required financing payment from your proceeds and directs it to your financing provider. This transfer is typically processed within three to five business days. Any remaining sales proceeds after the deduction are sent to your designated bank account as usual. If your loan payment comes due before your next disbursement date, your financing provider will generally extend a grace period so that you are not charged late fees, provided the payment is made at the next disbursement cycle.