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Amazon Partners With Bank Of America On Small-Business Loans


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Amazon Lending, a business-lending service from Amazon , has reportedly partnered with Bank of America Merrill Lynch ( BAC ) to provide loans to small businesses.

[ibd-display-video id=3149216 width=50 float=left autostart=true] The move would follow efforts from other tech-oriented companies like Square ( SQ ) and PayPal ( PYPL ) to expand their lending business. Apple ( AAPL ) and Goldman Sachs ( GS ) were also said to be in talks to provide financing for people who want to buy Apple's products.

E-commerce giant Amazon's decision would also provide the lending service, which offers loans ranging from $1,000 to $750,000, a way to offer credit to businesses while shielding it from risk, according to CNBC,  which reported the development.

However, Amazon recently has pulled back on loan growth via Amazon Lending, as it weighs the dangers involved with a big lending operation, CNBC said.

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Amazon's program, which debuted in 2011, functions on an invitation-only basis, CNBC said. It is intended to help companies doing business via the e-commerce giant that might not easily qualify for standard business loans, CNBC said.

Bank of America rose 0.7% in the stock market today , continuing to rebound off its 50-day line on Friday. A day earlier, shares sank amid a broader market downturn.

Amazon rose 0.7%, its fourth straight gain.

Elsewhere in banking, JPMorgan Chase (JPM) climbed 0.4%, while Citigroup (C) advanced 0.5%. Morgan Stanley (MS) closed up 0.6%.

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.



This article appears in: Investing , Stocks
Referenced Symbols: BAC , SQ , PYPL , AAPL , GS



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