The interesting part to me is that amazon gives out loans to small businesses. I never knew that. I’m curious how amazon will handle the situation. Will the merchant be required to pay back the stolen loan funds?
In the vast majority of cases money is released within 2 weeks of a sale. The exceptions are if an account gets suspended, or if there's a sudden increase in sales and it's flagged, in which case they might hold it for another week or two.
The only time money is held for over a month is if the account was suspended and not reinstated by then.
Presumably it helps with inventory management too - like the loanee indicates the inventory they're buying which means Amazon can factor that in.
Then they charge interest ...
However, whilst this sounds good for Amazon, is it more efficient - in economic terms - or does it just reduce Amazon's risks and costs.
They have an offer on my dashboard that's 10% interest for 3x monthly subscriptions (not total monthly revenue), 20% interest for 6x. To me, it seems rather aggressive. I'd have to be super desperate to accept those terms.