Amazon (NASDAQ: AMZN) and Goldman Sachs (NYSE: GS) are wading deeper into the financial services market, reportedly partnering to offer small-business loans to Amazon's customers.
For Goldman Sachs, the partnership gives it access to a new market of borrowers who might not think of the Wall Street firm when looking to shore up capital. For Amazon, it furthers its mission to profit from other aspects of its vast marketplace and gets it around some of the regulatory requirements associated with lending. Amazon can also significantly extend the lending products to its customers without taking on more credit risk.
According to the Financial Times, Goldman Sachs started building technology that would enable it to extend loans to small and medium-sized businesses via Amazon's lending platform. The service could be up and running in March.