If you’re a business owner, chances are good that you’ve wondered if it would be worth it to take out a line of credit. It’s also likely that, as soon as you heard that Amazon offered a corporate credit line, your interest was piqued because Amazon is such a big entity that does over 26 million transactions per day!
When it comes to Amazon’s corporate credit line, there are a few things you should know and consider before applying.
That’s why we’ve put together this guide. Consider this your ultimate guide for all things related to the Amazon corporate credit line. After reading this, you will know how Amazon’s corporate credit line works, how to use net 30 vendors to increase your business credit score (before applying), which credit line you should apply for, how best to pay it off, and more.
One of the most commonly mentioned pros of having Amazon’s credit line is the ability to shop for your business through Amazon and use your credit line. You can also customize your business account to what your company needs most. If you need to enable multiple users for the same account, you can do that, too.
The line allows businesses to pay off their card either by paying in full or revolving. We’ll discuss payment more within the guide.
Ready to take a deep dive into how you can grow your business capital using Amazon? Let’s begin.
How Does Amazon Corporate Line of Credit Work?
In short, Amazon’s corporate credit line works similarly to other credit lines. However, Amazon credit line has the additional bonus of being linked to the largest retailer in the world. In order to take advantage of the credit line, first you’ve got to apply and then you must be approved.
How to Get Approved
In order to be approved, you should meet the following factors:
- Your business should have been in business for at least two years
- You, or the business owner, must be willing to personally guarantee the account. This means that if the company were to be unable to pay off the credit line, you would be responsible for covering the cost.
- You should have an established business credit history and/or a business credit rating.
- You must agree that, once your business is approved, you will not use your Amazon account to purchase anything personal (you can still have an external personal Amazon account, but you cannot blur the line between the two).
Who is the Amazon Line of Credit Right For?
Small businesses will definitely benefit from the Amazon corporate credit account because it can help them to acquire capital in order to make business purchases as they work to grow their business.
How to Use Net 30 Vendors to Increase Your Business Credit Score
If you are a smaller business and your business credit score could benefit from a business credit score boost, you can use 30 day net vendors to increase your business credit score. This will help your odds of getting approved greatly.
When a business is just beginning and wants to build up a credit score, it can be difficult without any business credit history. Now, if this is you, you are likely wondering where to begin when it comes to building up your credit history. The solution? Establishing small vendor lines of credit with other companies who are reporting to business credit bureaus. In layman’s terms, small vendor lines of credit are 30 day net accounts. So, the money spent is owed in full in 30 days.
Because you are buying and paying off your credit line and the other companies are reporting to the business credit bureaus, your business credit score will begin to establish itself which can then make it easier to apply for credit lines in the future.
What does all of this have to do with Amazon? Amazon offers a net option (pay in full) for small businesses (it’s actually a “net 55”, meaning you have 55 days to pay it off). This means that you can make all of your business purchases on Amazon and then pay them off in 55 days which will make cash flow needs easier and it will help build up your credit at the same time.
Which Should I Apply For?
Not only does Amazon offer a net 55 pay-in-full credit option, but they also offer revolving corporate credit lines. As a small business, how do you know which one is the right choice for you?
We are going to break down each of these options a little bit more clearly to help you make the best decision for your business.
Pay-In-Full Credit Line
Pay-in-Full credit lines are credit lines where the company’s balance is required to be paid in full (hence the name) during each billing cycle. Net 30 and Net 55 business accounts are considered to be pay-in-full credit lines.
Revolving Credit Line
The biggest difference between a pay-in-full credit line and a revolving credit line is that you can pay minimum payments towards a revolving credit line as opposed to paying it off in full each month. However, keep in mind that a revolving credit line does come with the caveat of an interest charge.
Reviews of the Two Amazon Corporate Credit Line Accounts
The reviews are quite mixed, which is ironic since Amazon is well known for their incredible process of collecting reviews. So many people rely on seeing those yellow stars before purchasing, you would think Amazon would do a better job at trying to create a product and improve upon it based on customer feedback.
The average review for the pay in full account is 2.9 stars (out of 5) with 134 customer reviews. The biggest complaint being that the invoicing is too confusing.
The average review for the revolving credit line is just 2.5 stars (out of 5) with 70 customer reviews. The biggest issue that appears multiple times is difficulty making payments, including automatic payments and overall complaints about the website, user experience and customer service.
Hopefully, Amazon listens to their business customers and makes things smoother!
Amazon Business Prime American Express Card
Alternatively to the Amazon credit lines, which are more related to your Amazon Business account, you should also consider the Amazon Business Prime American Express.
As with most credit cards, the Amazon American Express Card comes with many perks like $225 in savings, a $125 Amazon Gift Card, an additional $100 statement credit after you spend your first $3,000 on the card, as well as cash back opportunities.
If your business already has an established credit line, the Amazon Prime Business American Express Card could be the best option for you and your business.
As a small, or mid-sized, business, if you are considering taking out an Amazon Corporate Credit Line, the consensus is that it can be incredibly beneficial for your business. Having a credit line through Amazon can help to free up additional cash flow, establish a business credit history, and unlock opportunities to purchase the majority (if not all) of your business needs at a fair price with speedy delivery.
As a consumer brand, Amazon is both beloved and trusted, and as a business owner, Amazon can be an incredible asset to you. Are you a small business owner with an Amazon Corporate Credit Line? Let us know your thoughts and how it’s helped your business to thrive!