Amazon Lending launched in 2011. It had $863 million in small business loans on its balance sheet at the end of 2019 according to FT.
Goldman Sachs is in discussions with Amazon to offer small-business loans through the online retail and tech firm’s existing lending platform. According to Financial Times, Goldman Sachs is seeking new lines of business to boost revenue outside its traditional strengths in trading and investment banking.
If the deal goes through, Goldman will be adding itself to Amazon’s existing lending platform, in place for several years. Since 2011, the online retailer has offered financing solutions for small businesses through a lending program that focuses on providing working capital to small merchants who sell products in Amazon’s marketplace.
It’s the second time in the past year Goldman has sought out a tech giant to assist in its Main Street banking campaign. Goldman partnered with Apple to launch its first-ever credit card last March, Apple Card. And in 2018, Amazon partnered with Bank of America.
According to several reports, loans could begin as early as March, and the project will be branded as a partnership between Goldman Sachs and the Amazon Lending platform, the Financial Times reported on Monday (2.3.2020).