Business Loans Provide Small Dollar Loan
Amounts at Competitive Rates – Addressing a Key Financing Need for
Small Businesses
American Express (NYSE:AXP) has announced a new addition to its
suite of business financing products, which are designed to help
businesses with access to working capital and short-term financing:
Business Loans. Business Loans offer small businesses quick access
to unsecured loans up to $50,000, to grow their business or to
consolidate debt1. Businesses can apply for the loans through a
simple online process and receive a decision in as little as 60
seconds.
“Our research shows that nearly three-quarters (74%) of small
businesses have a positive view of the economy, and more than half
(57%) have plans to make capital investments2,” said Gina Taylor
Cotter, General Manager and Senior Vice President, Global
Commercial Financing for American Express. “Small businesses need
access to capital with an easy application process and at
competitive rates. We designed Business Loans to help address this
need for smaller, general purpose loans that can help businesses
make critical equipment purchases or renovations to keep up with
growing demand, or consolidate business debt to help with cash
flow.”
Business Loans provide versatile funding that small businesses
can use to pay for purchases, pursue growth opportunities,
consolidate debt and even lower their monthly payments3. Select
American Express OPEN® Card Members receive an invitation to apply
that includes a loan amount and rate (which can be as low as 6.98%
APR4), personalized for their business. They choose to pay back
their loan over one, two, or three years. Funds are disbursed
typically within 3 to 5 business days upon approval and come with
the safety, security and customer service of American Express.
American Express OPEN Card Members can apply for a Business Loan in
three easy steps: 1. Log in to their American Express online
account to see their pre-approved loan amount and APR, then apply
for their loan at their pre-approved rate. 2. To apply, customers
indicate how much they want to borrow and choose one of three
repayment periods that best meets their needs, then see what their
monthly payment could be. 3. If approved, the customer reviews the
terms of their loan, and if they accept, their funds are
distributed.
Additional Business Financing Solutions from American
Express
Merchant Financing, launched in
2011, is available to qualified American Express Card-accepting
merchants5. Loans are offered in six-month, one- and two-year terms
and are designed to fund large projects such as expanding to new
locations or major building renovations. Loans range from $5,000 to
$2 million and offer flat, fixed fees6. Merchants can repay
automatically from their credit and debit card receivables or
business bank account, making it easy and hassle-free. Terms apply.
More information can be found here.
Working Capital Terms offers short
term financing to pay vendor invoices designed to help small
businesses manage cash flow. First launched in 2016, this
invitation-only product provides low cost, commercial financing to
American Express OPEN Card Members with direct payment to vendors.
Terms are offered at 30, 60, and 90 days with loan amounts ranging
from $1,000 to $750,000 and flat fees7. Terms apply. More
information can be found here.
Business Loans are the latest
addition to this suite of products, and were made available to
pre-approved American Express OPEN Card Members earlier this
year.
About American Express OPEN
American Express OPEN offers the money, tools and know-how to
help you get business done. Through innovative products and
services, we help businesses with short-term financing, business
management tools, cross border payments, global currency solutions
and travel. Learn more about American Express OPEN
at www.OPEN.com.
About American Express
American Express is a global services company, providing
customers with access to products, insights and experiences that
enrich lives and build business success. Learn more
at americanexpress.com and connect with us
on facebook.com/americanexpress,
foursquare.com/americanexpress,
linkedin.com/company/american-express, twitter.com/americanexpress,
and youtube.com/americanexpress.
Key links to products, services and corporate responsibility
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cards, prepaid cards, merchant
services, Accertify, corporate card, business
travel and corporate responsibility.
1 OPEN Card Members must be pre-approved for an American
Express® Business Loan offer in order to apply. Their pre-approved
loan amount is based on the creditworthiness of the OPEN Card
Member and that of their business as well as other factors. Not all
customers will be pre-approved for the highest loan amount. The
OPEN Card Member, together with its business, are jointly and
severally liable for their Business Loan.2 American Express OPEN
2017 Small Business Monitor3 Consolidating multiple business card
balances into a single monthly payment may not reduce or pay off
your debt sooner in all cases. If the monthly payment on your
Business Loan is lower than the combined minimum due on the cards
you are consolidating, it may be because of a lower interest rate
on your Business Loan, a longer loan period, or a combination of
both. Longer loan periods may result in more interest charged over
the life of the loan. Business Loans can be used to consolidate
business cards only at eligible U.S. banks (American Express Cards
are excluded).4 The pre-approved maximum APR is based on the
creditworthiness of the OPEN Card Member and its business as well
as other factors. Pre-approved APRs are between 6.98% APR and
19.97% APR, as of 8/1/2017. Not all customers will be pre-approved
for the lowest APR.5 To qualify for Merchant Financing, the minimum
eligibility requirements for a business are as follows:
- Accepts American Express Cards.
- Have a minimum of $50,000 in annual
business revenue.
- Have a minimum of $12,000 in annual
credit and debit receivables.
- Have been in business for at least 24
months.
In addition, to qualify for Two-Year Financing, a business must
have accepted American Express® for the past 24 months.6 Loan fees
are between 3%-7% of the loan amount for a 6-Month Term, 6%-14% for
a One Year Term, and 12%-28% for a Two Year Term. Loan fee will
vary by customer; eligibility for lowest available loan fee is
based on a variety of factors, including processing arrangements,
referral source, creditworthiness and history with American
Express.7 The amount you can borrow and your fee are based on the
overall financial profile of the OPEN Card Member and its business.
Working Capital Terms Program fees are between 0.5%-1.0% for 30
days, 1.0%-2.0% for 60 days, and 1.5%-3.0% for 90 days. Not all
customers will be eligible for the lowest fee. Fees are subject to
change.
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version on businesswire.com: http://www.businesswire.com/news/home/20171012005364/en/
American ExpressFelicia Mowll,
212-640-1709Felicia.A.Mowll@aexp.comorM BoothSamantha Coulombe,
212-539-3272Samanthac@mbooth.com
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