American Express launches business loan to assist SMEs

American Express is well known for its range of credit cards for the average Aussie or business owner. However, the credit card giant has now decided to move beyond plastic and enter the business loans market - a first for Amex outside of the United States. 

The decision to take on a new credit product like business loans came as a response to the rising number of small to medium enterprises (SMEs) planning to take out more than $130 billion of additional capital this year. 

“Many businesses are still feeling the full impact of the Covid-19 crisis, while others have rebounded with their sights firmly set on growth. We have taken a transformational step to evolve our business beyond our existing card offering to help support businesses on their journey forward,” said vice president of Global Services for American Express, Martin Seward. 

In order to make these loans a reality, American Express partnered with global organisations platform, ODX. 

“Given the dramatic shift in customer needs and preferences during the pandemic, it’s more important than ever to provide them with a digital and frictionless experience to tap into financing,” said president of ODX, Brian Geary. 

Jumping into the details, the American Express Business Loan will feature:

  • Unsecured funding from $5,000 to $250,000 
  • Annual interest rates from 10.95% p.a.
  • Terms of 6,12, 18 or 24 months 
  • Quick and simple online application process
  • No set-up or early repayment fees ($30 missed payment fee)
  • Delivery of funds within two business days once approved

The business loan product will initially be offered to a selected number of Amex business card members before inviting more members to apply within the first half of 2021.

SMEs struggling to find the right funding

In addition to the launch, American Express also conducted a ‘Recovery Survey’ to tap into how Aussie SMEs were feeling about the year ahead. 

The results found that 53% of SMEs are optimistic about 2021, however two in five businesses said they will need to seek access capital, such as a loan. The average loan request among SMEs has been around $97,225. 

Those that already sourced funds ran into a number of challenges, including complicated processes or being asked to use their personal assets as security. 

Want to find out how the American Express Business Loan stacks up to other offers in the market? Head on over to our business loans comparison tool.