Bohemia, NY (PRWEB) November 15, 2013
Lawrence Teicher, founder of CFO Consulting Services, responds to an article published by Forbes, which reveals that online retail giant Amazon.com has launched a small business lending service.
According to the Forbes article titled “Is Amazon’s New Small Business Lending Service The Right Choice For Your Business,” Amazon.com, once a small online bookstore, has branched out into the lending business. Amazon has just launched a small business loan service called Amazon Capital Services Inc., which is meant to provide an alternate source of funding to small businesses that cannot secure funding through more traditional lenders.
However, the article says not all small businesses are eligible for Amazon Capital Services loans. Businesses must have an active storefront on Amazon.com to be considered for a loan, and even then Amazon top performers will be much more likely to obtain the funding. Nonetheless, the article suggests that it may be worth the effort to try to get a loan through Amazon if more traditional options have been exhausted. The loans, which range from $1,000 to $38,000, have low interest rates when compared to the alternative, credit card interest rates. Amazon Capital Services is currently only available in North America, but plans to expand into the international audience sometime in the near future.
Lawrence Teicher, founder of CFO Consulting Services, a leading CFO services provider, believes there is a lot for small businesses to think about before accepting a loan from Amazon. “For businesses that plan to grow through sales on Amazon.com this approach might make sense,” he says. “However, the majority of companies do not use Amazon as a storefront. So then the question becomes, should I start selling products on Amazon in order to obtain a marginally cheaper loan than I can get through other sources? For companies who believe they can succeed on Amazon, it may be worth it.”
Teicher believes that a CFO should be involved in every small business’s loan process. “Before accepting any loan, I would recommend all small business owners consult a CFO or financial specialist. Accepting a bad loan can have dreadful consequences. Unlike Congress, small business owners must read and understand what they are agreeing to.”
CFO Consulting Services, LLC provides outsourced, part-time CFO services on an as-needed basis to both small and mid-sized businesses located in the NY metropolitan region. Founded by Long Island CPA and financial expert Lawrence Teicher, CFO Consulting Services follows four main principles: independence, objectivity, competence and confidentiality. These core values have led its clients to achieve lasting success in their businesses.