Amazon's Other Business
Amazon, the massive online retailer that just purchased Whole Foods, has another business model you may not have heard of. Amazon Lending, an arm of Amazon, has issued over $1 Billion in loans to merchants on its website. The service started in 2011 when Amazon identified creditworthy merchants using the website and extended a line of credit. Amazon then charges a commission on sales as the means of repaying the loan. Algorithms are used to identify the merchants and loan values go as high as $750,000. All in all, it's just another way in which Amazon is cornering their market and expanding their busienss.
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