Amazon’s corporate credit line is an alternative to conventional business loans. It’s a great fit for small to large businesses that rely on purchases from the online retailer to keep operations running smoothly.
We’ll go over the Amazon.com Corporate Credit Line program — what it is, what it’s for, how to apply and how much this financing will cost you. We’ll give you other business lending options that are worth exploring, too.
Amazon Corporate Credit Line: How It Works
Amazon’s business lines of credit only work with Amazon purchases, which isn’t a bad move if most of your business expenses come from Amazon anyway.
That said, there are certain products that you can’t buy using the Amazon Corporate Credit Line:
- Cellphones associated with a plan
- Textbook rentals
- Electronic documents
- Video games and software downloads
- Digital newspaper and magazine subscriptions
- Amazon Prime memberships
- “Subscribe & Save” and “Recurring Delivery” orders
- Print-at-home and emailed Amazon gift cards
Amazon offers 2 types of credit lines: revolving and pay-in-full.
Amazon’s Corporate Revolving Credit Line
The Amazon.com Corporate Revolving Credit Line is for small to midsize businesses that need flexible payment options. The benefits:
- Those enrolled in this program don’t need to pay in full each month. Instead, the balance carries over to the next month. However, this means you will accrue finance charges. You can always pay in full if you don’t want additional charges.
- You can give your staffers access to your account. That way, they’re able to buy supplies on your behalf.
- Members also are given some flexibility regarding their billing cycle.
Amazon’s Corporate Pay-In-Full Credit Line
The Amazon.com Corporate Pay-In-Full Credit Line may be more appealing to large businesses, schools, and government institutions and other organizations that can afford to pay in full. Some benefits:
- The program gives companies and organizations access to higher credit lines. However, they will need to pay their debt in full every billing cycle. Payments aren’t as flexible compared with the revolving credit line.
- Users have 55 days to pay their invoices.
- With a pay-in-full credit line, you have more control over your account. For starters, you receive a more comprehensive monthly billing statement. You’ll get a breakdown of every product you bought. This will improve your inventory management if used correctly.
- You also are given the opportunity to set up accounts by department or location. For example, the human resource department can order its own supplies when they need to. Or if you have 2 branches, the satellite office can order items without having to rely on the main branch.
- You also get a dedicated account manager to help you keep track of your credit or take care of your concerns.
What Customers Think
Amazon corporate credit line reviews have been mixed.
The revolving credit line users gave the service 3.3 stars out of 5 as of early December 2019. Most of the complaints range from an interface that’s difficult to use to problems with the credit limit.
The pay-in-full credit line, on the other hand, has 3.6 out of 5 stars. Based on the comments, users are having a hard time enrolling or logging in.
Synchrony Bank manages both types of credit line. If you have questions about the revolving Credit Line, you can call 1-866-634-8380 (24/7 hotline). For queries about the pay-in-full credit line, call 1-866-634-8381 (Mon-Fri from 7 a.m. to 6 p.m. Central Standard Time).
If you want to apply, head to Amazon’s corporate credit line page and select the plan that’s right for you.
Gaining Amazon Corporate Credit Line Approval
But before you apply, you have to understand the requirements and the costs involved. Below is a quick overview of what you can expect from Amazon.
Businesses that have been in operation for at least 2 years have a better chance of qualifying for Amazon’s Corporate Credit Line.
With the revolving credit line, however, you’ll need to provide a personal guarantee if you’ve only been operating for less than 3 years. This is also the case if your business is a sole proprietorship or a partnership.
If you’re willing to personally guarantee the account, you’ll have better success. It also helps if you have an established credit history or a business credit rating. Remember: You can’t use your credit line for personal expenses. Amazon only allows business-related purchases.
The good news is that neither plan charges an annual fee.
The pay-in-full credit line doesn’t charge an annual percentage rate. That’s because you’re expected to pay the balance in full at the end of each billing cycle. If you’re late, Moreover, a returned check fee will set you back $29.
As for the revolving credit line, there is a 12.99% purchase APR. In the event that you fail to make a minimum monthly payment, expect to receive a 29.99% delinquency APR indefinitely. Late payment fees can go up to $39.99. The returned check fee is $29.
Synchrony Bank, Amazon’s credit line service partner, processes all the payments made.
You can manage your credit line by logging into your Amazon.com Corporate Credit Line account.
With Amazon’s pay-in-full credit line, you have 55 days to pay once you get your invoice. Note that this is a longer time period than most credit lines offer. However, you have to come to terms with having to pay the full amount every time.
With the amazon revolving credit line, there is a minimum payment. As to how much the minimum cost is, you have to take into consideration the following:
- $50 (if you spend less than $50 on a given billing cycle, you have to pay the balance in full)
- One-twelfth of the new balance or the total amount of your finance charges
- The late fee (if applicable) plus 1% of your new balance
Amazon Corporate Credit Line Alternatives
Here are a few credit card alternatives to Amazon’s business credit lines:
The Amazon Business Prime American Express Card gives you 5% back or 90-day terms for purchases on Amazon Business, AWS, Amazon.com and Whole Foods Market with an eligible Prime membership.
There are other perks outside of Amazon. You get 2% back on purchases from U.S. restaurants, gas stations and wireless telephone services. For other purchases, you get 1% back. With this card, you can earn up to $225 in savings. Eligible Prime members get a $125 Amazon Gift Card upon approval. If you spend $3,000 in your first 3 months after approval, you get an additional $100 statement credit.
You can redeem rewards when you shop on Amazon.com or Amazon Business. Or you can apply them instead toward purchases on your balance statement. And when you’re using this Amazon business card, there are no foreign transaction fees.
The card comes with all the other features you expect from American Express such as expense management tools and 24/7 support.
The Amazon Business American Express Card has many of the same features as its Amazon Prime counterpart.
However, you only get 3% back or 60-day terms. Also, you can earn up to $200 in savings when using this card. You can get a $100 Amazon.com gift card upon approval.
While the Blue Business Plus Credit Card doesn’t offer Amazon-specific perks, it boasts attractive features.
First, you get double the reward points on everyday purchases regardless of what category it falls under (up to $50,000). Once you meet the maximum amount, the points go down to 1X. Also, there’s no annual fee. You get 10,000 extra reward points when you spend $3,000 on eligible purchases within your first 3 months of getting approved.
The Blue Business Plus Credit Card allows you to go over your credit limit. The amount you’re allowed to spend over the limit depends on factors such as payment history, credit record and other considerations. It also lets you buy from other retailers. You aren’t restricted to making Amazon purchases.
If you need to give other departments or personnel the ability to buy items on your behalf, you have the option to get employee cards. Or you can designate an account manager to help you manage your American Express credit card.