Pay for only what you use: Unlike a term loan, a line of credit only charges you interest based on the money that you use.Builds credit: American Express reports your payments to the credit bureaus, which can help build your credit when you make on-time payments.
Borrower RequirementsĪmerican Express has specific borrower requirements that must be met in order to qualify for a business line of credit. The time it takes to receive money for disbursement will depend on your bank. Once approved, you’ll typically receive your funds within one business day. Otherwise, a manual review will need to be done, which can take longer. If American Express is able to automatically confirm your information, it’s possible to be approved within minutes. If you have an account, most of your information will be pre-filled for you. If you’re on the lower end of its creditworthiness scale, you’ll want to think carefully before drawing against a line of credit with this rate.Īpplying for an American Express business line of credit shouldn't take long, especially if you’re already an American Express customer. It’s important to note that while the lowest monthly fee-equivalent APR American Express offers is 5.80%, the maximum possible is 35.99%. This may be limiting if you need longer fixed-term repayments or larger sums of cash for your business. Types of Business Loans Offered by American ExpressĪmerican Express offers a line of credit to its business customers, but not a secured or unsecured term loan. For loan terms of six months, the total monthly fee incurred over the term is 3% to 9% of the amount borrowed for 12 months it’s 6% to 18% and for 18 months it’s 9% to 27%.
Because American Express charges monthly fees (rather than interest), it’s difficult to determine APRs. Potentially low APRs: American Express’ business line of credit features APRs as low as 5.80%, according to our research.