Amazon Flexes Its Loan Muscles
Over the past couple of weeks, bits and pieces have leaked out about a new commercial loan pilot program from Amazon Inc. and how the online retail behemoth’s entry into the small business lending could put credit unions, banks and other lenders on high alert.
Releasing very few details, the Seattle-based company did confirm it rolled out its Amazon lending program through Amazon Capital Services Inc. at the end of 2011 to serve sellers of all sizes.
“The credit union business lending model is based on intimacy and service, not one size fits all global scale, and it’s certainly possible that the two can co-exist, maybe even work together, to help small businesses succeed,” Beardsley offered.
While Amazon may be seen by some as a foe encroaching into unchartered territory for the company, credit unions might still have an edge.