Amazon is set to begin offering its customers small business loans as it closes in on a deal with banking giant Goldman Sachs.
Small and medium sized business loans could be offered to Amazon customers via its lending platform in the US as soon as March, according to anonymous sources speaking to the Financial Times.
Though Amazon says that lending is already part of the services it provides to its third-party sellers, this deal would allow it to dramatically increase its lending capabilities “without any associated credit risk of regulatory obligations”, Goodbody’s analyst John Cronin explained.
This deal would push Amazon further towards its goal of becoming an ecommerce infrastructure provider, charging online retailers for a range of services including its cloud computing arm Amazon Web Services (AWS) and use of its high-tech warehousing and logistics network.
READ MORE: Apple Card begins official launch
It also falls neatly in line with Goldman Sachs ambitions to transform itself into a more mass-market financial services group.
The bank is understood to already have begun building technology ahead of the deal to allow small business loans to be made through Amazon’s platform.
Unlike other banks Goldman Sachs, which said last week it aimed to expand its revenues through new sources like consumer banking, lacks physical branches where small businesses usually turn to for loans.
A deal with Amazon would provide it easy access to thousands of small businesses who have all of Amazon’s tools available to expand.
Amazon has been lending its customers small business loans for nearly 10 years, using the data it holds on them to make quick-decision loans.
Last year Amazon had outstanding small business loans of $863 million.