Payability on Amazon Marketplace

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United States United States
D Spivey
Kudos: 15
Joined: Dec 30, 2016
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Payability on Amazon Marketplace
30 Dec 2016
What was good about this product or service overall?

I first heard about Payability a couple of months ago. I saw an ad on Amazon's seller central saying that I could get faster access to my Amazon monies. I used to do most of my sales on eBay. Boy, those were the days! When someone paid for something, I had access to the cash IMMEDIATELY! I could literally go to the bank THAT DAY and withdraw the cash from my Paypal account. Over the last few years, my business has all shifted over to Amazon and I've had to learn to deal with getting paid twice a month instead of getting paid instantly.

Anyway, the holidays are always tough because we sell items that are popular as gifts. We usually do 5 times our normal business or more at holiday time. We had a tough year this year! So going into the holidays, we were hurting for supplies AND money. Usually, we'll put whatever we need on a credit card if it gets to that point and then pay it off after the holidays. But I remembered Payability and set off to research it. I research everything before I buy.

I went and read the info on their site and recognized the business model. They call it 'Factoring'. It's simple really. Someone like me sells my accounts receivable to a 3rd party (known as a 'factor') at a discounted rate (in this case 99 cents on the dollar). In exchange, I get access to those receivables right away, and Payability will make one penny on the dollar in the form of a one-time fee. It's not a 'loan' so there's no interest compounding over time and no credit check.

I headed to the Amazon forums and started reading. PLENTY of people were posting things like "It's a scam!" "They're a payday loan company! Stay away"! etc etc etc. Several people said things like "they wanted my account information', they are trying to scam me"!

I was not seeing post after post where Amazon sellers were happily using the Payability service. What was I missing? I went and googled Payability. That's when I realized that they were still very new to the Amazon arena. They've been providing these services to folks who earn big bucks on youtube ads and whatnot for a while now. There is no shortage of people lauding not only the viability of factoring in these industries but the service they are receiving from Payability.

I decided to go for it. So I started the application process.

Now you have to understand something here. Payability has to place a certain amount of trust in you, and you will have to place a certain amount of trust in them. Here's how their service works.

1. You make a sale on Amazon Marketplace on Monday.
2. On Tuesday, around 9 am, Payability 'buys' the receivables for that sale and 80% of those funds become immediately available in your Payability account.
3. You log into your payability account and withdraw the monies that are immediately available to you. I use the free ACH method, and as long as I initiate the transfer request before 3:30, it's usually in my bank the NEXT DAY. They also offer wire transfer and debit card methods of withdrawal.

Anyway, that's how it works.

So Payability needs access to your Amazon account to set all this up. This is where the trust comes in on your part. Amazon will no longer make disbursements to YOUR bank account. They'll be making them to Payability's. So you will need to create Payability as a super-user on your Amazon account and change your bank info to reflect Payability's. Don't worry. They are not going to change any settings on your account. They need to be able to SEE your receivables if they are going to buy them. Giving them access to your account allows them to download your sales every day.

I've been with them for going on a month now. Couldn't be happier! It was nice having access to my funds through the holidays and not having to wait for Amazon disbursements! A great way to better manage cash flow! WELL WORTH THE 1% FEE
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