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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