Startup backed by Altman, JPMorgan announces capital lending partnership with Amazon

Slope, an innovative lending startup harnessing artificial intelligence, has announced a strategic partnership with Amazon. This collaboration, set to launch on Tuesday, will provide Amazon sellers in the U.S. with a reusable line of credit, supported by a credit facility from JPMorgan Chase. Eligible sellers can now apply for and receive capital directly through their Amazon Seller accounts, benefiting from real-time approvals. Slope, co-founded by CEO Lawrence Lin Murata and Alice Deng, emerged from Lin Murata's personal experiences assisting his parents at their long-standing toy shop in São Paulo, where he observed the financial struggles faced by small businesses. "Cash flow is a significant challenge for many small business owners," Lin Murata stated. This insight inspired the creation of Slope, which aims to simplify the lending process through AI technology. He emphasized, "Our platform allows us to underwrite businesses effectively, managing the complexities of risk assessment while providing a seamless experience for our users." The lines of credit will begin at an annual percentage rate of 8.99%, with eligibility criteria stipulating that vendors must have been in business for at least one year and generate over $100,000 in annual revenue. Once approved, sellers can draw funds as needed and select repayment terms that align with their inventory cycles, ranging from three months to a year. Deng highlighted the importance of independent sellers in the e-commerce ecosystem, noting that they constitute over 60% of Amazon's sales. She explained that while other financing options exist, they often cater to smaller sellers. In contrast, Slope targets more established businesses, some of which generate hundreds of millions in revenue and require more substantial financing. Amazon previously ventured into lending about four years ago, with an estimated market size of $1 to $2 billion. With Slope now at the helm, the company anticipates significant growth in this sector. An Amazon spokesperson remarked, "This partnership enhances the financing options available to our selling partners, which is crucial for small business growth." Sellers can apply for capital in just a few minutes via Amazon Seller Central, receiving nearly instantaneous approval based on their performance data and Slope's proprietary AI model. Lin Murata pointed out that this streamlined process offers a more enticing alternative compared to traditional bank loans, as the AI can make more informed financing decisions using detailed sales data. With this new partnership, Slope expands its clientele, which already includes major brands like Samsung, Alibaba, and Ikea. The initial integration trial has reportedly seen a remarkable 300% weekly increase in applications, showcasing the demand for such services. "We aspire to be an essential credit intelligence source for businesses, helping them thrive through accessible and fair financing options," Lin Murata concluded.