Amazon updated its Business Solutions Agreement effective August 24, 2024, introducing explicit restrictions on seller financing arrangements. These changes directly affect sellers using revenue-based financing (RBF), merchant cash advances, or similar credit facilities tied to their Amazon business.
What Changed
- Transfer & assignment ban: Sellers may no longer transfer their rights or obligations under the BSA to another party.
- Collateral pledge restriction: For the first time, Amazon explicitly prohibits sellers from pledging their BSA rights as collateral for any financing arrangement.
- Effective date: August 24, 2024 (announced May 29).
Who This Affects
Sellers relying on alternative financing methods tied to their Amazon seller account are at risk of non-compliance:
- Revenue-based financing (RBF) providers
- Merchant cash advance (MCA) lenders
- Any credit facility that uses Amazon seller rights as collateral or assumes account obligations
What Sellers Should Do Now
- Review existing financing agreements to confirm compliance with the new terms.
- Consult with your financing provider about restructuring arrangements if your current deal uses Amazon account collateral.
- Ensure your account documentation and financing contracts are aligned before the August 24 deadline.
- Consider alternative financing methods that do not pledge or transfer BSA rights.
How Squatio helps
Staying on top of account health and compliance is foundational to protecting your seller business. Squatio Decode (ASIN lookup, listing visibility & Sentiment IQ review analysis) gives you visibility into your account’s listing performance and standing, helping you monitor the health of your core assets. When you’re evaluating financing options or restructuring credit arrangements, understanding your true account value—listings, conversion rates, and reputation—is essential to making informed decisions about how to leverage your business responsibly.
Have you restructured any financing arrangements in response to BSA updates, or are you currently evaluating alternatives to collateral-based credit?
Source: Amazon's New Contract Terms Target Seller Financing Deals