Erik
Don't use if you sell on Amazon
OnRamp claims to help by giving you the highest loan possible, but in reality, they don't factor in the huge fees you're already paying to Amazon. When they approve you for a loan, they base it on your gross sales from Amazon, which sounds great at first. But here's the hard truth: They expect you to pay back that loan in just 4-6 weeks, which means you’re on a fast track to return a large chunk of money in a very short time. The problem is, Amazon takes 40-50% in fees, so that $40k in sales you made looks great on paper, but after Amazon's cut, you're left with about $20k—or even less, depending on your costs. OnRamp doesn’t seem to take that into account, and their repayment schedule doesn’t give you the breathing room you need to manage those fees. Instead of a partner helping you grow, it feels like they’re just speeding up your repayment with no real consideration for the massive slice Amazon is already taking out of your earnings. At the end of the day, it’s like you're running a business on a treadmill: you're constantly working to make sales, but it's hard to get ahead when everyone’s taking their cut, and OnRamp is just another piece of that puzzle, pushing you to pay back quickly when it’s the hardest time to do so. You might be better off using a credit card or looking for a more flexible loan that actually understands the cost structure of running an Amazon FBA business.
Response from Onramp FundsJan 7, 2025
Thank you for sharing your experience. At Onramp, we value transparency and always strive to provide clear terms and flexible solutions that support the unique needs of eCommerce businesses. To clarify for other potential customers, we structure our underwriting based on your total revenue, not just the deposits made after platform fees, reserves, and other variables. This allows us to optimize loans and offer better terms than when only considering net deposits, which can be highly variable, especially during periods when platforms like Amazon hold reserves for chargebacks or returns. All payment schedules, forecasted repayment timelines, and expected payments are clearly communicated before acceptance, giving you full visibility into how repayment aligns with your sales performance. Regarding your specific case, our team is aware of your situation and has been attempting to work with you to resolve the outstanding balance on your loan. We understand the challenges sellers face and are committed to working collaboratively to find a path forward that meets both parties' needs. If you’re open to working with us, we’d be happy to discuss solutions to help you move forward and get back on track. Please email us anytime at [email protected]. We appreciate the opportunity to address your concerns and welcome any borrower to reach out for further clarification or assistance.