Amazon and a major bank offer digital loans


Amazon and Goldman Sachs launch new products to help SMEs


E-commerce giant and technology giant Amazon has tied up with Goldman Sachs, one of the world’s largest investment banks. As part of the partnership, a digital credit line will be launched for small and medium-sized businesses.

Here’s how it works: Amazon merchants can get loans of up to $ 1 million from digital bank Marcus (Goldman Sachs) with an annual interest rate of 6.99% to 20.99%. Obtaining and repaying such a loan will be as easy as a credit card. Filing an application is online, takes just a few minutes, and confirmation is usually done in real-time. If users do not pay the minimum on time, they will be overdue. In addition, if merchants do not use at least 30% of their credit line, a service fee will be added.

According to experts, the deal with Amazon is profitable, firstly, for Goldman Sachs, as the company will have access to thousands of Amazon sellers. Initially, the internet retailer planned to create an online platform, where banks would compete for lending to small and medium-sized businesses. However, Amazon abandoned this strategy in favor of working exclusively with Goldman.

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In April, it became known that Amazon was suspected of illegally collecting private information about platform vendors. Amazon reportedly used third-party platform vendors for personal purposes to develop its own competing products. This is contrary to company policies.

The company itself noted that they track sales data so that customers get the best experience. But he prohibited employees from using non-public, specific data from vendors to launch their products, and promised to conduct internal investigations.

Read: Giants clash: Musk calls for Amazon to break monopoly

According to the content Cnbc


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