No, You don’t (need to be in Vendor Express).
The email looks attractive enough, but once you check into the details on the website it is a bad deal.
They need to protect their interests by getting your deposit when they lend to you. And, it is a loan with your future deposit for collateral. That means giving them access to your account to receive your deposit instead. This is not a good choice.
1% does not sound like much, but if you did this every pay period, you would find out that the accumulated costs is way more than 1% interest. It is 1% interest for a period of less than 2 weeks, and that ads up. It is 26 times the annual rate (like more than 26%).
If you can establish a line of credit with your bank, you can do much much better. If you borrowed the same amount and paid it back when you received your payment, you would pay less than one-fifth of that amount. You can even get better terms from a credit card cash advance, but that is more than you need to pay.
Totally worth it! Considering you have the sales to justify the minimum fee, which is 250 a month.
This is NOT a ‘payday loan’. This is factoring, and there’s a big difference. They are not ‘loaning’ you money. They are purchasing your receivables from you, to be paid to them at a later date (your amazon payday). For this, they ask for a 1% fee (not ‘interest’ which is compounded, but a one-time fee for each dollar’s worth they purchase)
Basically, you create a user account for payability on your amazon account. You then change your deposit settings at Amazon so that your payments go into an account at payabilities bank (an account with YOUR name on it).
Once that is set up, Payability has everything they need to look at your sales for today, and make those funds available to you tomorrow. For me, it’s totally worth the 1% fee (again, not ‘interest’, FEE) to have access to my sales immediately. Each day, they give me access to 80% of yesterday’s sales. The other 20% is held in my payability account as a reserve against returns/refunds and is released on the day that amazon sends the funds to payability’s bank (my regular amazon payday).
Amazon has featured this service, it’s not like these guys are some shady fly-by-night company who’s looking to take amazon sellers for a ride. They started out helping youtubers get paid sooner. It just so happens that their business model ports nicely to Amazon sellers as well.
So to recap. THIS IS NOT A LOAN! THIS IS NOT A ‘PREDATORY’ SCHEME! Anyone who tells you it is simply hasn’t read the info or doesn’t understand how it works. Granted, Payability could probably do a better job of describing their service and how it works.
Bottom line, if it’s worth it to you to pay 1% of your sales for the convenience of having INSTANT access to those monies (well, 80% of them anyway), then Payability is a GREAT SERVICE!
Just remember that there IS a 250 dollar minimum monthly fee, so if you make LESS than 25,000 in sales each month, you’ll actually be paying more than 1%.
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