Goldman Sachs in talks with Amazon to offer small-business loans

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Goldman has begun building technology to facilitate the offering of loans to small and medium-sized businesses over Amazon’s lending platform, sources said.

Goldman Sachs Group Inc. is close to striking a deal with Amazon.com Inc. to offer small-business loans to its U.S. customers as the Wall Street bank turns to Big Tech to extend a push onto Main Street.

For Amazon, a Goldman deal would be in line with CEO Jeff Bezos’ push to turn the company into an infrastructure provider that profits from a growing chunk of online trade by charging for a host of commercial services offered to other companies.John Cronin, an analyst at brokerage Goodbody’s, said banking partnerships could enable Amazon to “significantly extend” its small- and medium-sized business lending platform “without any associated credit risk of regulatory obligations.

It had outstanding small-business loans of more than $863 million on its own balance sheet at the end of 2019. For the last eight years it has lent to small businesses that sell on its site, using the data it holds on their cash positions to offer quick-decision loans in a handful of countries.Last year Goldman struck a credit-card partnership with Apple Inc.

 

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Omg. Amazon is taking over the world

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Source: BusinessInsider - 🏆 729. / 51 Read more »