If you have an outstanding loan with Amazon, the reserve balance is a combination of a reserve for your daily sales (10%-30%, depending on your advance rate) and a reserve for the loan repayment.
Amazon will deduct your loan payment from your bi-weekly payment, so we account for this by not advancing a set amount each day to cover your loan payment.
To calculate the loan provision reserve, your loan payment is divided by the number of days in your payment period.
If you are on a 14-day payment period your loan payment will be divided by 14-days and that amount will be accrued daily in your loan provision reserve. With this example, if your loan payment is $1,400 every 14-days, an additional $100 will be added to your reserve balance daily.
Once Amazon posts the loan payment to your statement, the loan payment will be posted in the ‘Marketplace Charges, Refunds & Holds’ transaction and the loan provision reserve will be released to net out the loan payment.