Selling on Amazon comes with its own set of challenges, and having bad credit can make things feel even more complicated. But here’s the truth: getting a business loan with bad credit is still possible.
You might not qualify for a traditional bank loan, but there are alternative financing options designed for sellers like you. In this blog, we’ll break down how Amazon sellers with bad credit can still access funding, what lenders look for, and which types of financing for Amazon sellers might fit your business best.
So, Is It Possible to Get a Loan with Bad Credit?
It is, but you’ve got to know where to look. If your credit score isn’t perfect, banks might not be eager to work with you unless you’ve got a long business history or solid collateral. But that doesn’t mean you’re out of options.
There are lenders out there who care more about your store’s performance than your credit score. They’ll look at your sales, your cash flow, and your overall potential. So yes, getting a loan with bad credit is possible—it just takes finding the right fit.
Why Bad Credit Makes Funding Harder for Amazon Sellers
A low credit score can make it much harder to get the funding you need to grow your Amazon business. Traditional lenders often make credit history their first filter, and if yours doesn’t check out, you could be rejected before they even look at your business performance.
And if you do get approved, the loan terms usually aren’t in your favor. Here’s what many Amazon sellers with bad credit often face:
Higher Interest Rates
Lenders tend to charge more when they see you as a credit risk. That means you’ll likely pay more in interest over time, which can shrink your margins and slow down your growth.
Shorter Repayment Terms
Instead of spreading payments out over time, you may only get access to short-term financing. This leads to larger, more frequent payments that can strain your cash flow, especially if your sales fluctuate.
Smaller Loan Amounts
Even if you’re approved, the amount offered might not be enough to cover the expenses you’re planning for. This becomes a bigger issue when you need inventory fast or want to invest in tools that could increase efficiency and sales.
Stricter Requirements
Traditional loans often come with a long checklist: a strong credit score, years of business history, financial statements, and even collateral. That’s a tough ask if you’re just starting out or operate as a solo seller.
How Business Loans Can Help Amazon Sellers Stay Ahead
Selling on Amazon moves fast. When orders spike or new opportunities pop up, you need cash to keep up. Business loans for Amazon sellers help you stay stocked, invest in marketing, and manage daily operations without putting your working capital at risk.
You can use business funding to:
- Reorder bestsellers before they sell out
- Launch new products or product lines
- Invest in PPC ads or listing optimization tools
- Cover surprise expenses like shipping delays or supplier price hikes
Loans give you room to grow and stay competitive, especially during seasonal surges or Prime Day promotions.
Where to Get a Business Loan with Bad Credit
Once you’ve decided a loan makes sense, the next step is finding the right lender. And if your credit isn’t perfect, that choice matters even more.
Traditional Banks
Banks tend to be more cautious. They usually require strong credit, a long business history, and a pile of documentation. If your credit score is low or your store is relatively new, it can be tough to get approved, and even if you do, the process may take weeks.
Alternative Lenders
Alternative financing platforms like Giggle Finance offer a more flexible route. Instead of focusing heavily on your credit score, they may look at your store’s performance, monthly revenue, and overall cash flow. That makes them a good option for sellers who are growing but may not meet a bank’s strict criteria.
Funding Options That Work Even If Your Credit Isn’t Perfect
Some lenders actually expect bumps in your credit history, especially when working with eCommerce sellers. That’s why a few financing options focus less on your credit score and more on how your Amazon store is performing. If your sales are steady or growing, these funding paths could be a great fit.
1. Amazon Lending
If you’ve been consistently selling on Amazon and your store has solid performance, you might get an offer through Amazon Lending. It’s an invite-only program that’s based on your sales activity, not your credit score.
Why it’s worth checking out:
Amazon already has access to your seller data, so the process is fast and straightforward. You won’t have to pull together tons of paperwork or stress about your credit history.
Heads up:
These loans are designed specifically for your Amazon business. So if you’re planning to spend funds on things outside the platform, like marketing off Amazon or other business needs, you might find this option a bit limited.
2. SBA Microloans
These are small loans—up to $50,000—offered through nonprofit lenders and backed by the Small Business Administration. They’re designed to help small businesses and startups grow, especially those that might not qualify for traditional financing.
Why it’s worth checking out:
SBA microloans tend to have low interest rates and longer repayment terms than many other options. Some lenders are also more flexible with credit requirements if your business shows potential and you can present a solid plan.
Heads up:
You’ll likely need to provide paperwork like a business plan or financial projections, and some lenders might ask for collateral. It’s not the fastest process, but it’s a dependable and affordable option if you're willing to put in a little extra effort.
3. Merchant Cash Advances
A merchant cash advance isn’t technically a loan. Instead, it’s a cash advance based on your future sales. You receive a lump sum upfront and repay it through a fixed percentage of your daily or weekly revenue.
Why it’s worth checking out:
MCAs are one of the easiest options for qualifying if you have bad credit. Lenders typically focus on your sales performance rather than your credit score. Plus, repayment adjusts with your income, which helps during slower sales periods.
Heads up:
That flexibility comes with a price. MCAs can be one of the more expensive financing options. Since payments are made frequently, it’s important to be confident that your business can handle the day-to-day cash flow demands.
4. Peer-to-Peer (P2P) Lending
P2P lending platforms match borrowers directly with everyday investors. Instead of going through a bank, you’re borrowing from people who are willing to support your business.
Why It’s Worth Checking Out:
Some platforms are more flexible with credit requirements, especially if your Amazon store shows solid growth. You might even land rates better than what traditional lenders offer.
Heads Up:
You’ll likely need to share your business story and explain how you plan to use the funds. A strong pitch and repayment plan can go a long way. Just keep in mind that approval and funding can take a bit longer compared to other options.
5. Inventory Financing
Inventory financing lets you use your current stock as collateral to get the funding you need. If your shelves are full but your cash flow isn’t, this can help cover new inventory, shipping costs, or other business expenses.
Why It’s Worth Checking Out:
Approval is based on the value of your inventory, not your credit score. That makes it a smart option if your credit isn’t great but you’ve built up solid stock.
Heads Up:
Your inventory is the lender’s backup plan. If you fall behind on payments, you could risk losing part of it. Before moving forward, make sure you’re comfortable with that trade-off.
Why So Many Amazon Sellers Trust Giggle Finance Instead
Traditional loans aren’t always built for Amazon sellers. Between inconsistent income and strict credit checks, getting approved can be a hassle, especially if you don’t have a typical 9-to-5 or perfect credit. That’s why Giggle Finance offers a faster, more flexible alternative designed specifically for self-employed sellers.
No Credit Check Required
Instead of digging into your credit score, Giggle Finance reviews your sales and bank activity. If your Amazon store brings in steady income, you could qualify even with bad credit.
Quick, Easy Application
Apply online in just a few minutes from your phone or laptop. Most applicants get a same-day decision, and approved funds can land in your account right away.
Made for Sellers Like You
Whether Amazon is your full-time business or a growing side hustle, you don’t need to jump through hoops to explain your income. Giggle gets how self-employment works.
Flexible Repayments
Repayments automatically adjust with your earnings. If sales slow down, your payments scale back, giving you more breathing room.
Great for Short-Term Needs
From supplier deals to restocking before big sales, Giggle is ideal when you need fast access to cash to stay competitive.
Simple Terms, Real Support
No hidden fees or confusing fine print. Just straightforward funding and a support team that understands the ups and downs of running an Amazon store.
If you’ve been turned down by banks or just need a faster, simpler way to fund your business, Giggle Finance can help. Apply today and keep your Amazon store moving forward.
What Do Lenders Look At? Understanding Your Eligibility
A low credit score doesn’t automatically disqualify you from getting funding. Many lenders, especially alternative ones, are starting to look at the bigger picture when evaluating Amazon sellers.
Here’s what they focus on:
Credit Score Isn’t The Only Factor
While some lenders still consider your credit score, others (like Giggle Finance) care more about your current business performance. If you're bringing in steady income, you're still a strong candidate.
Consistent Sales on Amazon
Lenders want to see stability. If your store brings in regular sales, that shows your business is active and dependable, which builds trust.
Positive Cash Flow
It's not just about how much you earn, but how well you manage your money. If your income covers your expenses and leaves room to spare, that’s a good sign for lenders.
Strong Seller Metrics
Things like positive reviews, reliable shipping, and low return rates show you’re serious about your business. These signals help lenders feel more confident about working with you.
Simple Ways to Boost Your Chances of Getting Approved
Bad credit doesn’t mean you're stuck. With a little prep and the right habits, you can make your application much more appealing to lenders who care about more than just a number.
Give Your Credit Score Some Love
Your credit score doesn’t need to be perfect, but raising it—even slightly—can help open more doors. Start by pulling your credit report and checking for any errors that may be dragging you down. Mistakes happen more often than you think. From there, pay bills on time, settle old debts if possible, and avoid maxing out your credit cards. These small steps will improve your credit score over time and show lenders that you're financially responsible and actively working to improve your profile.
Keep Your Amazon Business in Good Shape
A strong, consistent business can make a huge difference. Lenders want to see that you’re not just making sales, but that your store is well-managed. Update your listings regularly, respond to customer messages quickly, and aim for great reviews. A solid track record on Amazon, like high ratings, few returns, and reliable shipping, tells lenders that your business is dependable, even if your credit isn’t.
Get Your Paperwork in Order
You don’t need a mountain of paperwork, but being ready helps a lot. Bank statements, recent tax returns, and Amazon performance reports give lenders a clearer look at how your business is doing. It also speeds up the process and shows that you take your business seriously. Think of it as making their job easier, which helps them feel more confident lending to you.
Build Relationships with Lenders
Building a good relationship with a lender can go a long way. Ask questions, learn about your options, and get clear on the terms before you sign anything. If a lender knows you’re engaged and serious, they’re more likely to work with you, even if your credit isn't perfect. And over time, that relationship can lead to better offers, larger funding amounts, or more flexible repayment terms.
Don’t Let Bad Credit Slow You Down
Your Amazon store deserves to grow, even if your credit isn’t perfect. Whether you're restocking inventory, launching new products, or covering a surprise expense, access to fast funding can make all the difference.
With Giggle Finance, you can get the cash you need—no hard credit checks, no long waits. Just a simple, flexible way to keep your business moving forward.
Disclaimer: Giggle Finance provides Revenue-Based Financing programs for business purposes only. Any mention of any loan product(s), consumer product(s), or other forms of financing is solely for marketing and educational content purposes and to help distinguish Giggle Finance’s product from other comparable financing options available in the market.