American Express, known for its popular credit cards, also gives business financing options for small businesses. These include the American Express Business Loan and the American Express Business Line of Credit. In this piece, we’ll review both items to help you determine if they are a good fit for your business funding needs.

American Express Business Loan

The American Express Business Loan is an unsecured term loan offered to current American Express Business Card users. Here are the key features:

• Loan amounts from $3,500 to $75,000
• Repayment terms from 6 to 36 months – Estimated APR range from 6.98% to 19.97%
• $39 late payment or insufficient funds fee – No prepayment, application or transaction fees – Can be used to consolidate existing business credit card debt (except American Express)

To apply, you must be an American Express Business Card member for at least one year. American Express will review your reputation and business financial health to determine if you are accepted and for what loan amount[1].

The American Express Business Loan can be a good choice if you need a term loan for operating capital, debt reduction, or other business reasons. The interest rates are low, especially for current American Express users. However, the highest loan amount of $75,000 may not be sufficient for bigger financial needs[1].

American Express Business Line of Credit

In addition to term loans, American Express also gives a Business Line of Credit. This gives access to ongoing cash that can be used as needed. Key traits include:

• Credit amounts up to $250,000 – Repayment terms of 6, 12, 18 or 24 months – Competitive interest rates that change over time – No application, purchase or maintenance fees – Funds available as soon as the next business day after approval

To apply, you must be at least 18 years old, have been in business for at least one year, have a FICO score of at least 660, and have a minimum of $3,000 in monthly income. American Express will review your trustworthiness and business financials to determine your credit limit[2][3].

The American Express Business Line of Credit can be useful for meeting short-term financial needs like product sales, wages, or other running costs. The quick access to funds and variable payback terms are benefits. However, the monthly fees can be high if you don’t pay off the amount quickly[4].

Alternatives to Consider

While American Express gives cheap business credit choices, there are other companies to consider as well:

• Fundbox – Offers lines of credit and term loans from $1,000 to $150,000 with rates starting at 4.66%. Requires a minimum credit score of 600, 6 months in business, and $100,000 in yearly revenue[4].
• Bluevine – Provides lines of credit from $2,000 to $250,000 with rates starting at 4.8%. Requires a minimum credit score of 625, 6 months in business, and $10,000 in monthly income. Funding choices in 5 minutes and funds in 24 hours[4].
• OnDeck – Term loans from $6,000 to $250,000 and lines of credit up to $100,000. Requires 1 year in business and $100,000 in yearly income. Funding as soon as the same work day[1].

These companies may be good choices if you don’t meet American Express’ standards or want to compare options. However, American Express’ present users may find the application process and rates more favorable.