Quick answer
Amazon Lending does not use a factor rate. It quotes a fixed total dollar fee on top of principal, repaid over 3-12 months via automatic withholding from your Amazon disbursements. Reverse-engineered APR is typically 6-17%, materially cheaper than MCAs (40-90% APR-equivalent). Pricing varies by seller history and offer size, not by a published rate card.
Full answer
Amazon Lending uses a fixed-fee structure, not a factor rate. Each offer states the principal, the total repayment amount, and the term. Example: borrow $50,000, repay $52,500 over 9 months — total cost $2,500, no factor rate exposed in the contract.
Reverse-engineered APR: that example translates to roughly 11-12% APR using standard amortization math. Across observed 2026 offers, effective APRs cluster in the 6% to 17% range. The cheapest offers go to longest-tenured high-volume sellers; the upper end of the range goes to newer eligible sellers with smaller offer sizes.
Comparison to MCA pricing: typical MCAs run factor 1.20-1.45 over 4-12 months, which equates to 40-120% APR-equivalent. Amazon Lending at 6-17% APR is materially cheaper for the same dollar amount. The trade-off is that Amazon Lending is invite-only with limited offer sizes, while MCAs are broadly available and scale to larger advances.
Repayment mechanics: Amazon withholds a fixed dollar amount from each disbursement (every 14 days for most sellers) until the balance is paid. The withholding rate is typically 5-15% of expected disbursements depending on offer size and term. If your sales slow, the withholding still happens — Amazon does not reduce or pause for soft weeks.
Prepayment: most Amazon Lending offers allow early payoff with no prepayment penalty, and the unused portion of the fee may be waived depending on the program version. Confirm prepayment terms in the offer document before signing — terms have changed across years.
When Amazon Lending wins: established FBA sellers buying more inventory for the Amazon channel, where the cash use directly grows the disbursements that pay back the loan. The math is hard to beat for that exact use case.
When something else wins: if you need cash for non-Amazon use cases (other sales channels, payroll, real estate, equipment), an MCA or term loan keeps you out of Amazon's senior claim on disbursements. Even at higher APR, the channel-diversification value can be worth it.
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Methodology. Fundnode is an independent funding-platform that scores merchants against our 100-funder database. We earn referral fees from funders when merchants apply via Fundnode. Editorial rankings and answers are independent of fee structure. Updated 2026-06-25.