Business finance for Amazon & marketplace sellers

2 min read

£10k–£250kTypical facility size

Payout cycleStock in, cash out, then paid

No PGLent to the company, not the director

Why marketplace selling ties up cash

Selling on Amazon and similar marketplaces has a working-capital problem built into the model. You pay a supplier for inventory, pay to ship it into a fulfilment network such as FBA, and wait for it to be received and go live — all before a single unit sells. The marketplace then pays out on a cycle, typically every couple of weeks, and holds a reserve against returns and disputes. Fees, storage and advertising come off the top. So cash leaves the business well ahead of the day the payout lands, and a fast-selling line empties the shelf before the money to replace it has arrived.

Where the cash gets stuck

The squeeze concentrates in three places: the lead time and prepayment on inventory bought from suppliers, often overseas; the cost of shipping and prepping stock into the fulfilment network before it earns; and the payout cycle plus held reserve that delays your own takings. Long-term storage fees punish stock that sits, while a sell-out punishes you the other way — go out of stock and you lose ranking and Buy Box position that is expensive to win back.

What marketplace sellers use funding for

The headline use is funding a restock ahead of a known peak — Prime Day, Black Friday and the Q4 run-in — when demand spikes and being out of stock is the costliest mistake you can make. Sellers also use a facility to place a larger supplier order at better unit pricing, cover FBA shipping and prep, fund pay-per-click campaigns that protect rank, and bridge the payout cycle between buying and being paid. Size the peak outlay with the seasonal cash buffer calculator.

What to weigh before borrowing

Plan around lead times: order and finance early enough that stock is live before the peak, not after it. Check your real margin after marketplace fees, FBA, shipping, ads and returns, and confirm it covers the borrowing. Tie repayments to your payout cycle, and avoid over-ordering slow lines that rack up storage fees. Read how to forecast cash flow first. This is general information, not advice on your accounts.

How short-term company finance fits — no personal guarantee

Credicorp lends to the limited company, not to you personally — no personal guarantee, so your home is not on the line. As an exempt business lender it provides working capital to UK companies rather than regulated consumer credit. A business loan or the flexible Credicorp Flex line gives a seller a controlled pot to restock ahead of a peak and ship into the network, repaid as payouts clear. You can apply online.

Frequently asked questions

Can I borrow to restock before Q4 or Prime Day?

That is a core use case. A short-term facility lets you buy and ship inventory in good time for the peak, then repay as the heavier payouts come through. Because being out of stock at peak is so costly, timing the borrowing to land stock early usually pays for itself.

Is finance assessed on my marketplace payouts?

The assessment looks at the company's overall trading and the cash that flows through the business, of which marketplace payouts are a clear and predictable part. A steady payout history and clean trading record support the application more than stock on hand.