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This merchant cash advance gives retail businesses that accept American Express cards an advance on their future sales. With rebates for customers who pay ahead of schedule, this could be a good choice if your business brings in a lot of revenue but experiences some cashflow disruptions. But you’re going to have to back it with business assets. And it might require a personal guarantee as well.
$5,000
Min. Amount
$2,000,000
Max. Amount
| Product Name | American Express Merchant Financing |
|---|---|
| Min. Amount | $5,000 |
| Max. Amount | $2,000,000 |
| Loan Term | 2 years to 6 months |
| Requirements | Accept American Express credit cards, $50,000+ annual revenue, $12,000+ annual credit and debit card receivables, in business 2+ years Restricted uses, if applicable No real estate, construction, personal or family use. Also can't use it to refinance debt from an American Express affiliate. |
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Anna Serio is a staff writer untangling everything you need to know about personal loans, including student, car and business loans. She spent five years living in Beirut, where she was a news editor for The Daily Star and hung out with a lot of cats. She loves to eat, travel and save money.
American Express Merchant Financing could be a good cashflow solution for businesses with high but spotty revenue. It’s one of the few providers that offers a rebate if you pay back your advance early. And its flexible repayment options means your daily cash flow won’t take a hit.
However, your business needs to accept Amex cards to qualify. And it’s not the fastest merchant cash advance out there — it could take up to five business days to receive your funds. You also need to be in business for at least two years to qualify.
Not sure this is right for you? Compare your other business loan options below.
Your business must meet the following criteria to meet American Express’s minimum requirements:
American Express might also have restrictions on your industry. Contact a customer service representative if lenders typically consider your industry to be high risk.
American Express Merchant Financing offers flexible repayments you might not find with other similar products. You can choose whether you want repayments to come from just your Amex sales or all credit and debit card sales. This lets you choose between payments that have a smaller impact on your cash flow or an advance that you can pay off early.
It’s also one of the few providers that rewards early repayment by offering a 10% or 25% rebate on your advance.
American Express Merchant Financing is an advance on your business’s future credit and debit card sales. You can borrow between $5,000 and $2,000,000 and repay it with a percentage of your daily sales over six, 12 or 24 months — plus a fee.
Fees range from 1.75% to 20%, depending on the loan term you choose:
If you pay back your advance ahead of schedule, you can get a rebate on the fee. How large a rebate you get depends on how early you pay it off and your loan term:
| Term | 25% rebate | 10% rebate |
|---|---|---|
| 6 months | 90 days | 135 days |
| 12 months | 180 days | 270 days |
| 24 months | 360 days | 540 days |
You can estimate your fixed fee, daily and total cost, and rebate amounts by using the calculator on the American Express merchant cash advance website.
Since this is a secured form of financing, your business needs to have assets to back your advance. If you borrow less than $35,000, you and other business owners may need to back it with a personal guaranty. This means you’re responsible for the debt if your business defaults on the advance.
From its transparent rates and fees to its early repayment rebate, here are a few perks of borrowing from American Express:
Consider these potential drawbacks before taking out an advance with American Express:
You can apply online through the American Express Merchant Financing website. Check the eligibility requirements first to make sure your business can qualify before following these steps:
After you submit your application, American Express reaches out with a preliminary offer and instructions on how to complete the application. It’ll reach out with a final offer once you submit your full application. Typically, businesses receive funds in their account in two to five business days.
You might have to provide the following documents to apply for American Express Merchant Financing:
You’ll start repaying your loan with a percentage of your business’s daily sales. You have a few options when it comes to how you make repayments:
If you fall behind on repayments, you could be charged a late fee of $39 or 2.99% of the payment amount — whichever is greater. Reach out to customer service as soon as possible if you have any questions or concerns by calling 855-298-1209.
If Amex’s merchant financing isn’t right for your business, consider its fixed-term business loans. Explore other ways to finance your company with our guide to business loans.