On Tuesday, Amazon (NASDAQ:AMZN) announced that it has launched a financing program for sellers on its platform. Eligible merchants will now be able to receive a cash advance for a fixed fee and flexible payment plans.
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The funding is provided by Parafin and will allow merchants to access up to $10 million. The program is aimed at small to medium businesses that tend to have more difficulty securing financing. As a result, it has been designed to provide more favorable conditions relative to traditional loans.
Aside from the fixed fee, borrowers don’t pay any additional interest on the loan. Furthermore, there are no minimum payments or fixed terms. Instead, payments are only made when sales are made, reducing the pressure on merchants during slower periods.
Is Amazon Stock a Buy, Hold, or Sell?
Turning to Wall Street, Amazon stock has a Strong Buy consensus rating based on 31 Buys and one Hold assigned in the past three months. The average Amazon stock price target of $140.29 implies 44.02% upside potential.
