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American Express® Business Line of Credit
4.4
★★★★★
Finder score
Min. Amount
$2,000
Max. Amount
$250,000
APR
N/A

Our verdict

Enjoy minimal paperwork and a straightforward application as Amex introduces its line of credit for business and retires its former branding with Kabbage.

Funding from American Express Business Line of Credit, formerly Kabbage Funding, offers a line of credit for small businesses. It features a quick, doc-free application if you can link your business accounts. Each draw on your American Express business line of credit becomes a short-term installment loan, and instead of interest, these loans come with a flat monthly fee. But it requires a personal guarantee, meaning you'll have to repay the loan from your personal accounts if the business defaults. Its repayment terms are fairly short, with a maximum of 24 months, and its fee structure makes it difficult to compare against other lenders.

Best for: Fair credit borrowers in need of a no-doc business line of credit.

Pros

  • Considers credit scores as low as 660
  • Straightforward application with minimal paperwork
  • No prepayment penalties or origination fees

Cons

  • Requires a personal guarantee
  • Complex fee structure
  • Limited customer reviews and feedback

In this guide

  • Our verdict
  • Details
    • Product details
  • Your reviews
  • Ask a question

Details

Product details

Min. Amount $2,000
Max. Amount $250,000
Loan term 6, 12, 18 and 24 months
Min. Credit Score 660
APR N/A
Financing fee 3-9% 6-months
6-18% 12-months
9-27% 18-months
12-18% 24-months
Requirements Minimum FICO score of at least 660 at the time of application, have started your business at least a year ago, and an average monthly revenue of at least $3,000

What is the American Express business line of credit?

The American Express business line of credit is for businesses that want ongoing access to a source of funds rather than a lump-sum payment as with a traditional business loan.

With this line of credit, you can be approved for a borrowing limit of $2,000 to $250,000. Simply withdraw your desired amount and repay it over a set term, either 6, 12, 18 or 24 months. In other words, each withdrawal becomes its own short-term loan.

Rates and fees

The American Express business line of credit has few fees compared to other business loans, including no origination fees and no prepayment penalties. However, its rate structure is a little more complicated than most competitors. American Express business line of credit charges a total fee that is allocated as a monthly fee over the term of the loan, and is based on the term of your loan. Here’s a snapshot:

Loan amount$2,000 to $250,000
Term length6, 12, 18 or 24 months
Repayment scheduleMonthly
Fees
    3-9% 6-months
    6-18% 12-months
    9-27% 18-months
    12-18% 24-months

No origination fees, application fees, annual fees, maintenance fees or prepayment penalties.

Turnaround time
  • Approval as fast as a few minutes
  • Funding within 1-3 business days

Some applications or funding may take longer if additional paperwork is required.

AvailabilityAll 50 states and US territories

American Express business line of credit customer reviews and complaints

BBB accredited No
BBB rating Not accredited
BBB customer reviews 1.08 out of 5 stars, based on 474 customer reviews
BBB customer complaints 4 customer complaints
Trustpilot Score 1.5 out of 5 stars, based on 4,340 customer reviews
Customer reviews verified as of 16 May 2024

The majority of reviews for American Express focus on their credit cards and suite of other products. Since the business line of credit is a newer offering, reviews specifically mentioning it are sparse.

A few customers on Reddit have claimed that Amex closed their former Kabbage accounts without any support to transfer to the new format, costing them many hours of administrative work.

American Express business line of credit eligibility requirements

The minimum requirements for the American Express business line of credit for business include:

  • Be 18 years old
  • Have one year in business
  • Have a FICO score of 660 or higher
  • Have average monthly revenue of at least $3,000

However, American Express states that each business is unique, and other requirements may apply depending on your specific situation.

How the application works

Follow these steps to apply for the American Express business line of credit:

  1. Create an account if you’re new to American Express, or log in with your existing credentials if you’re already a customer.
  2. Connect your business checking account and any additional accounts to the platform.
  3. Complete the application by providing your personal and business information.
  4. Consent to a hard inquiry on your personal and business credit.
  5. Wait for a decision from American Express.
  6. Review and sign the loan agreement if approved.

Funds typically arrive in your account within three business days of signing the loan agreement.

Amex requires a personal guarantee, and you need to secure your loan with business assets. It also does a “hard pull” on your credit file during the application, so your credit score may lower slightly after applying.

Amex verifies your business and revenue by connecting to your business’s bank accounts digitally. This means you’ll need to share your login information for your accounts, but this process also saves time and paperwork since you won’t need to upload or submit bank statements.

Is American Express legit?

Yes, American Express is a global leader in credit cards and other financial products. Its business lines of credit are issued by American Express National Bank, which is recognized by the Federal Deposit Insurance Corporation.

It employs advanced fraud protection systems and smart technology to help protect its customers and offers 24/7 emergency phone assistance.

However, it hasn’t been without its issues. In 2012, the Consumer Financial Protection Bureau ordered Amex to pay more than $85 million to customers harmed by its illegal credit card practices across three subsidiaries.

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Holly Finder

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