American Express Business Loan Review of 2024

American Express offers a business line of credit that comes with attractive interest rates, a few charges, and a simple application process, primarily for current American Express customers. But, it’s only the business line of credit. If you’re looking for another type of business finance You’ll have to search elsewhere.

Pros Explained

  • Possible lower APRs: American Express’ business line of credit offers rates of as little as 5.80 percent, based on our analysis. Since American Express charges monthly fees (rather than interest) It’s not easy to calculate APRs.
  • No additional charges Beyond that monthly charge (and late payment charges), American Express doesn’t charge any additional fees, such as the cost of origination prepayment fees, or draw fees.
  • No collateral is needed In contrast to different lenders American Express doesn’t require you to use collateral to ensure the security of your line of credit.

Cons Explained

  • There are a few loan options: American Express only provides its credit line for business. If you’re in search of a term loan or an SBA loan invoice factoring, other borrowing services then you’ll need to find a different source.
  • A personal guarantee is required While there is no need for collateral the personal guarantee is required. The borrower must sign this guarantee for approval.
  • The monthly fee that is complicated Instead of charging an interest rate that is standard on the money you take out, American Express charges a monthly fee that is calculated as some percentage of the amount you borrowed and the repayment period. For loan terms that last six months, the monthly cost for the duration is 3%-9 percent of the loan amount in 12 months; between 6% and 18%, and for 18 months, 9 to 27 percent.

Types of Business Loans Offered by American Express

American Express offers a line of credit to its business customers however, it does not offer a secured or unsecured credit line. This can be limited if you require more long-term time-bound repayments or larger amounts of cash to fund your business.

It’s important to remember that the lowest monthly fee equivalent APR American Express offers is 5.80 percent, and the highest achievable is 35.99 percent. If you’re on the lower side of the creditworthiness scale, it’s best to be aware before committing against a credit line at this rate.

Time to Receive Funds

The process of applying to get the American Express business line of credit won’t take too long Particularly if you are currently an American Express customer. If you already have an account, the majority of your details will be filled in for you.

When American Express can instantly verify your details then you could be approved in a matter of minutes. If not, a manual review must be conducted which may take a bit longer. 1 Once approved, you’ll receive your money within one working day.

The time needed to receive funds to be disbursed will be contingent on the bank you use.

Borrower Requirements

American Express has specific borrower conditions that must be met to be eligible for the Business line of Credit. 2

  • Credit score of 640
  • Monthly income of $3,000; $36,000 a year
  • One year of the business
  • A business checking account for business.
  • Have at least 18 years of age.
  • Employment in an industry that is eligible

American Express Business Loan Features

  • Improves credit: American Express reports your transactions to credit bureaus. This can improve your credit score if you pay on time.
  • Pay only for what you need unlike the term credit, a line credit charges interest only determined by the amount you spend.
  • The term lengths that are rotated: American Express offers three distinct lengths of term. When you take an account and pay, you’ll have the option to choose a new repayment period for your money.
  • Mobile application: American Express maintains its app specifically for its business offerings. The app lets you apply for a credit line or accept payments, as well as check your expenses.

Can You Refinance a Business Loan With American Express?

The line of credit isn’t the typical business loan, therefore refinancing won’t perform in the same manner. Each time you draw money from your credit line, you’ll be able to choose the length of your loan and the amount that you’d prefer to take. It is possible to draw the funds from the new draw to repay the money you received previously.

Customer Service

American Express is well-known for its customer support, which can be seen in the many ways you can reach the company. It includes mail, phone social media, mail live chat. 3

  • Hours of business 24 hours a day
  • Phone: 1-800-528-4800
  • Chat Log into your online account and then hit”Chat” in the upper right corner “Chat” icon.
  • X (formerly Twitter): @AskAmex
  • Facebook: @AmericanExpressUS

Customer Satisfaction

Many know about American Express thanks to its credit card offerings, not the business credit line which can make it difficult to gauge the level of satisfaction among customers.

However, J.D. Power’s U.S. Small Business Credit Card Satisfaction Study has placed American Express number one for two consecutive years, which indicates the quality of service you’re likely to get. 4

Applying for an American Express Business Loan

Making an application to get an American Express small business loan is fast and simple.

  1. Fill out an online application. If you’re an American Express customer, you can log into your account and get the majority of your application filled in. If not, you’ll have to enter your personal information and join an account for business checks.
  2. You should wait for a reply. After you’ve submitted your application, three things could happen. You could be swiftly approved but you could also be rejected or your application might require manual review.
  3. Sign documents. After you’ve been approved for your business loan you’ll be capable of finalizing your details including your initial draw amount as well as the account for disbursement. Additionally, you’ll need to be able to sign loan paperwork.
  4. Receive money. Once all paperwork has been completed and the withdrawal has been made You can expect to be able to see the money in your accounts within a period of one up to 3 business days.

Alternative Business Loan Lenders

KapitusOnDeckBluevine
Line of Credit AmountUp to $250,000Up to $250,000Up to $250,000
Loan Terms3-18 months24-months or more6-12 months
Recommended Minimum Credit Score650625625

Final Verdict

American Express’ business line of credit may not be a good fit for everyone and especially for those seeking longer repayment terms. It is, however if there is a good score on your credit report and a proof of income, American Express provides some of the most beneficial advantages available with lower APRs and no additional fees for draw, origination or for prepayment.

What Is the Minimum Credit Score Required for American Express Business Loans?

American Express requires that borrowers must have a minimum credit score of at least 640 to be eligible for an account with a business line of credit.

How Long Does American Express Take to Review a Loan Application?

The time required to receive a loan approval is contingent on the application you submit and the documents you submit. If the automated system of American Express can verify the information you’ve supplied it will approve your application in a matter of minutes. If it isn’t, your application will require an examination by hand and could take longer.

Is an American Express Business Loan Unsecured?

There is no collateral requirement for opening the American Express business loan and, therefore, it’s not secured. However, you’ll have to give an individual guarantee when you apply for the credit line.

Is an American Express Business Loan a Line of Credit?

American Express’ business loan choices are limited compared to other lenders for business. One loan American Express provides is a line of credit that has variable repayment times of between 6 to 18 months.

Leave a Comment