American Express® Business Line of Credit review (previously Kabbage)

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:

American Express business line of credit customer reviews and complaints

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.