American Express Business Loans

American Express is one of the biggest credit card issuers globally and is well-known for its small business. American Express Business Loans offer capital to small business owners who need cash for their business needs.

The main reason that makes it popular globally is the advantages it gives to the customers, such as; zero fees and reasonable terms. Before moving further, let’s see how this loan works?

American Express Loans fall under the heading of American Express Merchant, but they are not merchant cash advances. The value of American Business Loans depends on your receivables of credit history and debit card every month.

Let’s get into it and explore more options for American Business Loans.

American Long-Term Business Loans

American Express offers long-term loans over one to a two-year term. The amount of a one-year term loan is $5000, to $2 Million. This amount is also based on your business performance and how much money it will bring with card receivables.

It also offers two-years term loans whose structure is similar to the one-year loan. But it is different from a one-year loan when it comes to the amount because it gives $36000 to $2 million in financing.

Purpose of Using an American Business Loans

Now, a question arises that how should you know that an American Small Business Loan is right for your business?

Short-term loans are best for well-established businesses with specific purposes and need to fulfill, such as; buying inventory, equipment, business expansion, or financing for any other business projects.

Moreover, if you qualify for a loan amount that is $2 Million, you will have a lot of cash to use for your business. Working capital is the best option if you need a more flexible option for the loan. However, if you repay the amount in advance each month, you can use that working capital for several other purposes.

Qualification Requirement for American Express Business Loans

The following are the essential requirements that you need to fulfill to qualify for American Express Business Loans.

Receivables

As you know, this financing depends on your credit and debit card sales; therefore, American Express will review your credit score in the past years. To qualify for the loan, you must have $12,000 receivables of credit and debit card annually.

Annual Revenue

If your business can produce a minimum of $50,000, the lender will happily approve your loan request.

Total Time in Business

If you have a well-established business, then there are more chances for approval. The minimum requirement is two years in your business.

Advantages and Disadvantages of American Express Business Loans

Let’s discuss the pros of cons of American Business Loans that you should keep in mind before applying for this loan;

Quick and Simple Application Process

The application process for this loan is entirely online, and you don’t have to visit a bank or a lender for this process. You must submit the required documents, such as tax returns—bank statements, and monthly installments from credit cards.

Affordable

The best thing about American Financing is that it is super affordable. As compared to other financing options, American Express Business Loans have a reasonable range.

Fast time to Funding

If you need an immediate business loan, you should choose an American business loan because the lender may approve your loan request every day, and you get your cash.

The speed of the Funding depends on the factors like loan amount, repayment method, and credit card processing.

Disadvantages

Now, let’s have a look at the downside of the American Express Business Loans;

Tight Cash Flow

You are at a loss if you have chosen a repayment method to get a fixed percentage of your daily credit card sales. Because that will cut your cash flow, and it would be difficult for you to manage.

Short Term

If the lender approves your request for a large amount of money, you have to repay that amount quickly. Thus, you cannot manage your operations because you will consider refunding all the payments on time to avoid any future risk.

What Happens if you can’t pay?

If you cannot pay for the loan, you have to bear the consequences, which are different in American Express's case. For instance, if you cannot pay in one month, that amount will b handed out to the next payment.

But, if you fail to pay the financing in the case of one to two-year term loans, it will result in a 100% repayment rate until you ultimately pay the remaining balance.

A Quick Wrap Up!

If you are interested in American Express Business Loans, you should know the basic and qualification requirements before applying. If you are still confused, then you need the advice of financial experts. BitX Funding is one of the leading financial platforms giving business owners helpful advice and suggesting the loan option that suits them best.