- Competitive terms & fees
- Excellent customer support
- Prepayment discount
- No additional fees
- Relaxed borrower qualifications
- Easy application process
- Only available to ecommerce sellers
It’s not uncommon for marketplace sellers to encounter financial hurdles. Slow payouts, in particular, can affect your cash flow and have a negative impact on your business. Maybe you’re ready to grow your business, but you just don’t have the funds available in your bank account. Sound familiar? If so, Payability may offer the financial solution you’ve been searching for.
Payability provides funding to sellers on Amazon and other online marketplaces with two financial products: Instant Access and Instant Advance. Instant Access works much like invoice factoring, by providing you with daily payouts for your marketplace sales. With this product, you no longer have to wait for weeks to get the money that you’ve earned from your sales.
With Instant Advance, Payability purchases future sales and provides you with an immediate lump sum payment. This means that you can get the money you need today to grow and scale your marketplace business.
Of course, these products do come at a cost. However, Payability’s fee structure makes it easy to understand your cost of borrowing, and the fees are competitive with similar lenders. Qualifying for Payability’s financing is easy. There’s no credit check required. Instead, Payability analyzes the performance of your business to determine if you qualify.
Since 2016, Payability has helped thousands of online marketplace sellers grow their ecommerce businesses by providing over $1 billion in funding. Could you be the next seller to get the business financing you need in as little as 24 hours? Read on to learn more to determine if Payability is the right lender for your business.
Table of Contents
- Who Owns Payability?
- How Payability Works
- Borrower Qualifications
- Payability Terms & Fees
- Application & Funding Process
- Sales & Advertising Transparency
- Customer Service & Technical Support
- User Reviews
- Final Verdict
Who Owns Payability?
Payability is a private fintech company that was founded in 2014 by Scott Lynn and Keith Smith. The company originally worked with mobile app developers before shifting its focus to providing funding for online marketplace sellers in 2016.
How Is Payability Associated With Amazon?
Payability provides financial solutions for Amazon Marketplace sellers. In 2016, Payability partnered with Amazon Launchpad to provide financial solutions to startup businesses. Since its launch, Payability has expanded its business to provide financing to businesses on additional online marketplaces, including Walmart, Jet, Newegg, Tophatter, Etsy, and Shopify. One thing to note is that even if you have received funding through Amazon, such as the Amazon Business Prime American Express Card or a loan through Amazon Lending, you probably still qualify for one of Payability’s products.
How Payability Works
Whether you want instant access to your marketplace payments or you want an advance to grow your business, Payability has the solution for you. Read on to find out how Payability’s products work for marketplace sellers.
How Instant Access Works
As a marketplace seller, you’re probably already aware of the challenges that arise from waiting for your payments. You may wait for weeks to receive your marketplace revenue, and this delay in cash flow could negatively impact your business if you need cash now. With Payability Instant Access, you can access your funds whenever you need them.
Payability will pay up to 80% of your sales revenue from the previous day. The remaining percentage will be paid on the marketplace’s regular schedule, less any fees charged by Payability. For example, if your payout is $1,000 on Monday, Payability can provide you with up to $800 on Tuesday. Then, the remaining balance — less Payability’s fees — will be paid out on the marketplace’s typical schedule.
Once approved for an Instant Access account, you can have access to funds in less than 24 hours. Every day, your sales will be added to your account, so you can transfer additional funds to your bank account or the Payability Seller Card. There are no limits to how often you can transfer your sales revenue.
How Instant Advance Works
Instant Access gives you immediate access to the sales revenue you’ve earned, but what if you need additional funds to purchase inventory, create a new product, or otherwise grow your business? Enter Payability’s Instant Advance.
With Instant Advance, you may be eligible to receive up to $250,000 to grow your marketplace business. Payability looks at your sales history to predict your future earnings. Once this amount has been determined, you’ll receive 80% immediately. For example, if Payability advances $10,000, 80% of this amount — $8,000 — will be sent to your Payability Available Balance. Over a period of 16 to 20 weeks, you’ll repay the full $10,000 with 25% of marketplace sales. When your marketplace releases funds, 25% of the funds will be applied toward your Instant Advance and the remaining balance will be released to you. If your advance is paid off early, you’ll receive a rebate on all remaining fees.
How The Payability Seller Card Works
As a Payability customer, you’ll be eligible to receive the Payability Seller Card. This card makes it faster and easier to use your Instant Access or Instant Advance funds.
With the Payability Seller Card, you don’t have to wait on bank transfers. You can use your card as soon as your payout is available, even on weekends and holidays. Your card can be used online or in person anywhere that Visa cards are accepted.
One of the major benefits of using the Payability Seller Card is that you can receive up to 2% cash back on all purchases. You can also receive up to 20% cash back by signing up for software and services through Payability’s partners, including Feedbackwhiz, SellerCare, SellerApp, Shopkeeper, and AMZShark.
There are no credit checks required to receive the Payability Seller Card.
The borrower requirements for Payability are based on the product you apply to receive. For the Payability Instant Access product, you must meet these requirements:
|Time In Business:||At least 90 days of sales history|
|Personal Credit Score:||N/A|
If you apply for the Payability Instant Advance, you must have:
|Time In Business:||At least eight months of sales history|
|Personal Credit Score:||N/A|
For both products, you must be a seller on a supported marketplace. Payability supports the following marketplaces:
Payability Terms & Fees
To use Payability’s Instant Access, you’ll pay a single flat fee of 1% to 2% of your gross sales. Your fee is determined by your monthly sales and selling history.
|Advance Amount:||80% of daily receivables|
|Fixed Fee:||1% – 2% of gross sales|
Let’s break this down with an example. If your fee is set at 1% by Payability and your gross sales are $10,000 in a payment period, you’ll pay a $100 fee to receive daily payouts. Marketplace sellers with revenue of over $100,000 per month can contact Payability directly to find out if special rates are available.
Payability does not charge application fees, origination fees, or annual fees for its services.
If you’re interested in applying for Instant Advance, you’ll receive an upfront payment for the purchase of future receivables. You’ll have 16 to 20 weeks to repay the money advanced to you by Payability. You’ll also pay a weekly fee starting at 0.75% of the total receivables purchased by Payability.
|Advance Amount:||Up to $250,000|
|Term Length:||16 – 20 weeks|
|Interest Rate:||Weekly fee starting at 0.75% of purchased receivables|
Let’s take a look at an example. Let’s say that Payability purchases $9,500 of your future receivables. You are paid $8,000 up front and are given 20 weeks to repay the full $9,500. Your weekly fee is 0.75% — or $75. Over the full 20 weeks, your total fees will be $1,500. Now, let’s say that Payability collects payments sooner than expected. If your advance is paid off over 15 weeks, you’ll receive a rebate for every week it’s early. In this example, the advance is paid off 5 weeks early, resulting in a $375 rebate to you.
If you’re making sales of over $100,000 per month, you can contact Payability directly to learn about special rates for Instant Advance. Payability also has a Loyalty Program, which provides borrowers with higher advances and lower fees over time.
Application & Funding Process
Ready to get the funding you need to boost sales and grow your business? The next step is to submit your application to Payability to get started. Let’s take a look at what to expect during the application process and when accessing your funds.
How To Set Up Payability
To get funded through Payability, the first step is to fill out the secure application on the Payability website. To start the application, you’ll provide basic information, such as your legal name, the name of your business, date of birth, Social Security Number, business start date, and contact information. Your SSN is only used to verify your business and is not used to conduct a credit check.
Next, you’ll choose your supported marketplace and provide funding details. You’ll connect to your seller accounts so that your sales history and the performance of your business can be assessed by Payability. The full application process takes approximately 10 minutes.
After your accounts have been assessed, you’ll be provided with an approval decision. If approved, you’ll have access to funds as quickly as the next day.
How To Use Payability
After you’ve been approved for Payability Instant Access, you’ll have access to your Payability dashboard. This can be accessed at any time using the email address and password you selected during the application process. Each day, your sales from the previous day will be loaded into your Payability account. You can transfer these funds to your linked bank account, or you can access them using your Payability Seller Card.
Using your Payability Instant Advance is similar. Once approved, you’ll have same-day access to your funds. You can transfer your cash advance to your linked bank account or use your Payability Seller Card.
Sales & Advertising Transparency
Payability’s rates, terms, and fees are very clearly explained on its website. The company provides information for all of its financial products, including YouTube videos which break down exactly how Payability’s Instant Access, Instant Advance, and Seller Card work.
Customer Service & Technical Support
Current and prospective customers with questions about Payability’s products can contact the company by phone. Payability can also be reached by email.
Payability can also be reached through social media. Its social media accounts are also a good source for current company news and updates. Payability has accounts on Facebook, Twitter, LinkedIn, and Instagram. The company also has a YouTube channel featuring videos that explain its financial products.
Negative Reviews & Complaints
The majority of customer reviews of Payability are positive. However, there are a few negative reviews and complaints, including two complaints on the Better Business Bureau website and a handful of negative reviews on Trustpilot. Complaints included:
Frozen Accounts: Customers reported that when Payability changed the bank account on marketplace accounts, access to the marketplace account was temporarily frozen.
Risk-Free Trial: Some customers misinterpreted the risk-free trial that could be canceled within seven days as a free trial. During this trial, Payability’s flat fees still apply — something that some customers did not fully understand.
Limited Hours For Tech Support: The business hours for the Payability Seller Card were reported as being very limited. However, customer support is available Monday through Friday from 9 AM to 6 PM EST, which is fairly standard for customer support.
Positive Reviews & Testimonials
Payability has overall favorable reviews with its customers. The company has been accredited by the BBB since 2017 and has an A+ rating. The company has a customer rating of over 4.5 stars on the BBB website and a 4-star rating on Trustpilot with 200 customer reviews.
Customers praised Payability for:
- Easy qualification
- Excellent customer service
- Fast & easy application process
- Fast transfers
- Easy-to-read reports
As a marketplace seller, a delay in payments or a lack of capital to scale puts your business at a disadvantage. Payability offers a solution and helps you get the capital you need today.
Payability’s products are designed exclusively to meet the needs of marketplace sellers, eliminating many of the challenges sellers face when seeking financing. Even sellers with past credit challenges may qualify to receive the funds they need today — whether they’re seeking an advance of future receivables or just want to access daily payouts. Payability has received glowing reviews from its borrowers who have used these financial products to take their businesses to new levels. If you need daily payouts or a cash advance to purchase inventory, create a new product, or just keep sales flowing, consider giving Payability a shot.
To learn more about how we score our reviews, see our Business Loan Rating Criteria.