Our artificial intelligence evaluates your Amazon listing (bestseller rank, competition, price history, etc.) to determine the financing volume and monthly fees. Our starting point is your gross sales price. From this, we subtract costs that could incur, including
From these liquidation proceeds, we take a deduction, which is determined by our artificial intelligence. As a rule, we finance between 50% - 65% of the liquidation proceeds after deduction.
What affects the deduction?
There is a plethora of influencing factors that affect the deduction. They can be roughly divided into three categories:
Individual product characteristics
These involve looking at individual product parameters in isolation (e.g., sales period, price stability, product ratings, etc.).
Relative product characteristics
This involves looking at individual product parameters relative to the competition (e.g., sales period, price stability, product ratings, etc. compared to competitor products).
These are risk parameters that are considered at both category and product levels.
It may happen, for example, that a very large number of products are financed within the "Kitchen, Household & Home" category, so that the risk tolerance for further products from the same category decreases and thus leads to a larger deduction.
In the case of particularly large orders, the deduction may be greater, as liquidation would extend over a long period of time.
How can it be that the unit funding amount for a product varies from project to project?
Changes in prices and fees have an immediate impact on the liquidation proceeds and can therefore lead to fluctuations in your financing amount - both upwards and downwards. But even for a product that is stable in terms of prices and fees, there may be variations from project to project. The following scenarios, among others, are conceivable:
Individual product parameters have changed because, for example, product ratings have been added or deleted.
Your product performs better or worse relative to the competition.
We have fewer or more units of your product as collateral across all loans than in previous projects.
Your product is subject to a certain level of seasonality and the term of the credit spans different parts of the season compared to previous projects.
How is our approach compared to traditional product financing?
Traditionally, in product financing, your purchase price is used as the initial value, from which a deduction is sometimes made. This is done against the background of the usual utilization strategy of selling the products taken as collateral to bulk buyers, who in turn are oriented towards the purchase price that they themselves could achieve. This can lead to the fact that your product A, which costs 3€ (purchase price) but is sold for 20€, receives a lower financing amount per unit than your product B, which costs 8€ (purchase price) and is also sold for 20€. In the case of Myos, assuming the same costs and fees, both products would receive the same financing amount. This would be higher for product A than for product B in relation to the purchase price. As a rule of thumb, you can assume that we usually finance between 25% - 30% of the gross sales price.