Are you thinking of applying for American Express merchant financing? AmEx offersfine rates for small business loans and provides simple account management. This article will help you learn more about AmEx merchant financing and see whether it’s a good fit for your business. Also, you’ll discover a true funding expert in the industry.
American Express Merchant Financing
As you know, AmEx is usually associated with payment processing services. However, the company also offers small business funding solutions to approved business card holders.These include small business loans, merchant financing, as well as working capital loans.
AmEx’ merchant funding options are designed much like a merchant cash advance (MCA.)The payment is made through a percentage of a merchant’s daily credit card sales. With AmEx, you can get merchant funding at a fixed fee of 1.75 to 8% on a 6-month period of time, 3.5 to 12% on a 12-month period, and 7 to 20% on a 24-month period of time.
In fact, the loans offered by AmEx are for select members. For more details just keep on reading below.
Overall, to be eligible for an AmEx business loan, you must be:
- An AmEx Basic Card Member or an AmEx Card Member in good standing
- A US citizen or legally registered resident
- 18 or 18+ years old or the age of majority in your state
If you’re interested in American Express merchant financing, consider turning to a reputable alternative online lender in the space. With a respectable business financing provider and payment processorthat specializes in the high risk area, you can enjoy the most competitive rates and terms both for low and high risk businesses. This refer both to starters and larger businesses.
Look for a business funding provider that’s dedicated to offering excellent service, simple application processes, and the right financing solutions tailored to your own business wants and needs.
American Express Merchant Funding Review
AmEx merchant financing emerged in 2011 and came to add its contribution to theshort term business loan market. Today, AmEx offers business loans featuring 6-, 12-, and 24-month periods.
Pros of AmEx Merchant Funding:
- Hassle-freeloan application
- Quick funding
- Competitive terms and rates
- Suitable for small businesses
- No extra fees
- Prepayment discounts
Cons of AmEx Merchant Funding:
- Requires preapproval, so merchants who lack an AmEx business credit card, or those who aren’t in good standing, won’t qualify for available products besides the merchant financing.
- The preapproval requirement may exclude AmEx for emergency loan purposes.
- AmEx isn’t a traditional bank, so you can’t get comprehensive banking solutions such as checking, savings, branch locations, etc. from it. This means merchants looking for one-stop banking solutions may opt for another funding option for their long term banking and financing needs.
- Not a go-for option for startups.
As a business owner, you might be building your company on big ideas, but how can you do this if you lack the necessary working capital? Fortunately, with true professionals in the industry, obtaining the right business financing can never be an issue.
Author Bio: As the FAM account executive, Michael Hollis has funded millions by using American Express merchant financing solutions. His experience and extensive knowledge of the industry has made him a finance expert at First American Merchant.