Overview

Amazon offers a lending program that allows eligible sellers to obtain financing directly through Seller Central. A key component of this program is the Automated Repayment Service, which automatically deducts loan payments from a seller's disbursements. Understanding how this repayment mechanism works is essential for any seller considering or currently using Amazon Lending, as it directly affects cash flow and payment scheduling.

Key Points / What Sellers Need to Know

• Payments come from your disbursements — When you enroll in the Automated Repayment Service, Amazon deducts your loan payments directly from your Seller Central disbursements before the remaining balance is sent to your bank account.
• Enrollment is irrevocable — Once you accept a financing agreement that uses automated repayment, you cannot opt out for the duration of that loan. Amazon notes that this irrevocable enrollment is what enables them to offer more favorable financing terms.
• You are responsible for shortfalls — If your disbursements are not sufficient to cover a scheduled payment, you must pay the remaining balance directly to the lender. Amazon is not liable for partial or missed payments.
• Grace periods may apply — If your payment due date and disbursement date do not align, your financing agreement should include a grace period so you are not charged late fees for the gap between those dates.
• Extra payments go through the lender — If you want to make additional payments, pay off the loan early, or handle any unscheduled payments, you must coordinate directly with the lending provider rather than through Amazon's automated system.

How Automated Repayment Works

The Automated Repayment Service connects your Seller Central account to the lending provider so that loan payments are handled seamlessly at each disbursement cycle. When your disbursements are scheduled, Amazon checks whether you have any payment due. If you do, Amazon transfers all or part of your disbursement funds to the lender. If your disbursement exceeds what you owe, the remaining funds are deposited into your bank account as usual. However, if your disbursement is equal to or less than the amount due, the entire disbursement goes to the lender and nothing is sent to your bank account for that cycle. The lending provider sends Amazon your payment details — including amounts due, due dates, outstanding balances, interest charges, and any changes to your loan terms — so Amazon can process deductions accurately.