APR

APR (Annual Percentage Rate) is a standardized way to show the true cost of a loan or credit, calculated on an annual basis. It includes:

• Interest rate
• Any required lender fees (e.g., origination fees, service fees)
• Sometimes insurance or administrative charges

In Amazon’s ecosystem, you might encounter APR in:

• Amazon Lending – where Amazon offers financing to sellers to support inventory purchases or business growth
• Third-party financing options integrated into Seller Central
• Co-branded credit card offers (e.g., Amazon Business credit cards)

Why APR matters:

• It gives you a true apples-to-apples comparison between different loan offers
• A lower APR means a cheaper loan over time - even if monthly payments look similar
• It helps sellers assess profit margins after debt costs

Example:

• A loan offer with 8% APR means you’ll pay approximately 8% of the borrowed amount over the course of a year - assuming the full balance is held for that time

APR vs. Interest Rate:

• Interest rate = just the base cost of borrowing
• APR = interest rate + other required costs

In short:

APR tells you how much your loan really costs per year - not just the interest, but the full price of borrowing.