American Express Business Line Of Credit Review
3.00% to 27.00%
$2,000 to $250,000
1 year
$36,000
Pros and cons of American Express
American Express is a good financing option for current American Express Business cardholders looking for additional funding. The company used to offer small business loans and lines of credit, but a business line of credit is currently the only available option.
| Pros | Cons |
|---|---|
No prepayment, application or origination fees Low minimum monthly income requirements Can be used to consolidate business debt other than an American Express credit card balance | Must be in business for at least one year High late payment and insufficient fund fees Every loan requires a personal guarantee and collateral |
American Express small business loans review
American Express is best known for its suite of personal and business credit cards, but it also offers business lines of credit with reasonably competitive interest rates.
While you don’t have to be an existing American Express Business Card customer, if you do have an Amex account, you can log into your account to see if you’re pre-approved.
In 2020, American Express acquired the fintech lender Kabbage. Amex now issues all loans and lines of credit that were previously handled by Kabbage.
- Established businesses. Must be in business for at least one year.
- Business owners looking to consolidate business debt. Can be used to consolidate existing business credit card debt not associated with American Express.
- Those who want a loan without a lot of fees. No origination fees, application fees or prepayment penalties. You only pay a fee if your payment is late or you have insufficient funds in your connected account.
American Express small business financing at a glance
| Product | Loan amounts | Repayment term | Estimated APR range | Fees |
|---|---|---|---|---|
| American Express business line of credit | $2,000 to $250,000 | 6 to 24 months | 3.00% to 27.00% | Late fees up to $100 |
Business line of credit
American Express Business Lines of Credit are alternatives to short-term business loans that can provide working capital for your small business or consolidate existing business credit card debt. But there’s an important catch: You can’t use this line of credit to consolidate debt from American Express credit cards.
Line of credit amounts range from $2,000 to $250,000, although only select customers qualify for amounts over $150,000. These lines of credit have repayment terms of 6, 12, 18 or 24 months. Annual percentage rates (APRs) for these business lines of credit range from 3.00% to 27.00%, depending on your creditworthiness and the repayment term.
Amex doesn’t charge application fees, origination fees or prepayment penalties. But if you pay late or don’t have sufficient funds in your account, you’ll be hit with a late payment penalty ranging from $10 to $100, depending on your outstanding loan balance.
American Express Business Loan borrower requirements
| Minimum annual revenue | $36,000 |
| Minimum time in business | One year |
| Minimum credit score | 660 |
Like most lenders, American Express will look at your company’s income, revenue and credit when you apply for a business loan.
When applying for an American Express Business Line of Credit, you’ll need to provide a valid email address, your desired loan amount and repayment term and the financial reason your small business needs the funds. Once you’re approved, Amex will determine if you can borrow the amount requested and what your interest rate will be.
Required documents
American Express doesn’t provide a list of required documents on its website. It does require some basic information, including:
- Business EIN and business owner’s Social Security number
- The industry the business is in
- Estimated annual gross revenue
You’ll also need to link a business bank account to your application, but it doesn’t have to be an Amex account. Keep in mind that many lenders require documents such as personal and business tax returns, bank statements, financial statements and a business plan.
Alternatives to American Express
| American Express Business Loans | Bluevine | OnDeck | |
|---|---|---|---|
| Minimum credit score | 660 | 625 | 625 |
| Loan products offered | Line of credit | Line of credit | Term loans and lines of credit |
| Time to funding | 1 to 3 business days | Instant or up to 3 business days | Same business day |
| Starting APR | 3.00% | 7.80% (simple interest) | 27.30% |
| Maximum loan size | $250,000 | $250,000 |
|
| Minimum annual revenue | $36,000 | $120,000 | $100,000 |
American Express vs. Bluevine
With a lower minimum credit score, a Bluevine line of credit may be somewhat easier to qualify for than an American Express Business Line of Credit. The starting interest rate with Bluevine is also more straightforward: Rates start at 7.80% simple interest.
However, one factor that sets the American Express Business Line of Credit apart is the option for an 18- or 12-month term. Bluevine’s lines of credit are limited to 6 or 12 months. The maximum loan size and time to funding are about the same for both American Express Business Line of Credit and Bluevine.
American Express vs. OnDeck
OnDeck offers both term loans and lines of credit but at a much higher APR than American Express. However, OnDeck’s time to funding is much quicker, so this may be a better option for small business owners looking for fast cash.
OnDeck is also open to borrowers with credit scores of 625 and higher, which is less strict than American Express’s 660 minimum.