American Express Merchant Financing
American Express Merchant Financing loan products are commercial loans secured by the assets of a small business, excluding real estate and motor vehicles. Importantly, merchant financing is not a “merchant cash advance,” which involves the purchase of an agreed-upon percentage of a merchant’s future credit/debit card receivables by a lender.
Through its Merchant Financing division, American Express offers loans ranging from $5,000 to $2,000,000 to businesses that already accept the American Express Card. These are commercial loans that can be utilized for funding significant projects, upgrading equipment, hiring additional staff and for general cash flow purposes.
The Fixed Fee and Terms
Instead of American Express utilizing interest rates to generate associated expense to the borrower, American Express adds an upfront fixed fee assessed as a percentage of the loan principal while offering terms of six, twelve, and twenty-four months. The fixed fee percentage varies depending upon the creditworthiness of the business and its owner, as well as further considerations such as payment processor arrangements and the term of the loan.
Fixed fee percentages range from 1.75-7% (6-month term), 3.5-14% (12-month term), and 7-28% (24-month term). There are no origination fees. Importantly, there are no prepayment fees – in fact, American Express offers early repayment rebates of either 25% or 10% of the upfront fixed fee, depending on the date of early repayment and the corresponding loan term. small business.
The Application Process
American Express debt relief provides merchant financing to eligible businesses that already accept the American Express Card, generate minimum annual revenue of $50,000 and at least $12,000 in annual debit/credit card receivables, and that have been in business for at least twenty-four months. Applications are submitted online or completed over the phone with a merchant financing division representative.
Depending on the size of loan requested and the method of repayment, applicants may be asked to provide business financials including tax returns, bank statements and payment processor monthly statements. Additionally, for loans $35,000 or less, a personal guaranty may be required, and those businesses seeking a 24-month term loan must have been accepting the American Express Card for at least two years.
If approved, funds are disbursed directly into a business bank account, typically within five business days or less from the date of a completed application.
The repayment method is determined by American Express and involves an automatic daily repayment predicated upon creditworthiness, processing arrangements, loan amount, term, and client history with American Express. There are four possible repayment methods to an American Express merchant financing product.
The first involves a repayment rate, or percentage of daily American Express card receivables withheld by Amex, with all remaining amounts sent to the business bank account, per usual. A second payment method involves American Express partnering with a business’ payment processor to automatically send daily payments based on a repayment rate of total credit/debit card receivables from all cards, including those beyond American Express.
A third method, somewhat similar, involves an automatic daily payment based on a repayment rate of total credit/debit card receivables sent by the payment processor to a transfer account at Wells Fargo. Finally, the fourth repayment method involves a fixed amount automatically debited from the business checking account every business day.
Are you in debt? we can help
Time and again, I did not know how to handle my debt
Time and again, I did not know how to handle my debt. Even when I paid my credit cards off, a few months later I was back in the same situation. But this year is different. I contacted United Settlement...
Business debt relief is what I needed when I contacted the United Settlement crew
Business debt relief is what I needed when I contacted the United Settlement crew. They are committed to helping people like me who requires more help with business debt problems. I had several loans out...
Student loan debt was the reason that I reached out to United Settlement
Student loan debt was the reason that I reached out to United Settlement. I had about 200K plus in student loan debt for my business degree. I recognized that I had to do something when I struggled to make...
There is nothing worse than falling ill and then having to deal with super expensive medical bills
There is nothing worse than falling ill and then having to deal with super expensive medical bills that you really do not have the patience or experience to handle. I was pleased with my experience with...
I took out a few personal credit cards to open my boutique
I took out a few personal credit cards to open my boutique. When than money ran out, I went on to take out more loans for my business. However, this quickly turned into a disaster. Today, I now have a mountain...
Who knew that auto loans were so negative for your credit lines
Who knew that auto loans were so negative for your credit lines? Especially, if they are not paid off right away. As a married couple, we had vowed to keep auto loan debt at bay. But, we found ourselves...
I didn’t have a ton of debt when I contacted United Settlement
I didn’t have a ton of debt when I contacted United Settlement, but what I wanted from them was some information about how to handle my debt management. I knew that I needed some more information to get...
Federal student loans were the reason I ended up at United Settlement
Federal student loans were the reason I ended up at United Settlement. I had about $200K to pay back and I was not quite sure where to tackle that debt once I got out of school. But I reached out to that...
Everyone knows how horrible student loans are
Everyone knows how horrible student loans are. For me and my family, they had become more than just an annoying monthly bill. They had taken over our lives. That’s why I decided to take action and find...
I wanted to be more informed about my own personal and business debt
The number one reason I chose to contact United Settlement was I wanted to be more informed about my own personal and business debt. When you have credit card debt, it can be extremely frustrating. Especially...
I cannot believe I was finally able to find a company to actually help me pay off my debt
I cannot believe I was finally able to find a company to actually help me pay off my debt! I thought I would forever be chained to debt. But United Settlement offered me multiple solutions for paying off...
What your money can do for you.
The great reviews that you have thanks.
Dealing with high interest auto loan debt was difficult for me and my wife
Dealing with high interest auto loan debt was difficult for me and my wife. We thought we got a good deal, but it actually was a horrible loan. So, we reached out to United Settlement, and they got to work...
No one really wants to go bankrupt, and neither did my family
No one really wants to go bankrupt, and neither did my family. But fortunately, we did not have to go that route. It was our last resort, but United Settlement helped us figure out a way around bankruptcy...
I had been through about 5 different credit counseling agencies before I found United Settlement
I had been through about 5 different credit counseling agencies before I found United Settlement. I had read through their reviews and made the decision to move forward with them. I also was so impressed...
Save time and money
Just what I needed, already had a company I was working with and I switched because I was able to same some money. Brian and Alfred were really nice and helpful
As a business facing some unwanted financial difficulties
As a business facing some unwanted financial difficulties, we were at a loss for what to do next when our debt started to soar. We took a closer look at our financial situation by contacting United Settlement....
I had no clue how to create a debt management plan
I had no clue how to create a debt management plan and in fact, I didn't even know what a debt management plan was. Fortunately, I reached out to United Settlement before I had too much debt to tackle....
Being burdened by debt is one of the biggest struggles we faced as a family
Being burdened by debt is one of the biggest struggles we faced as a family. But these people at United Settlement were very helpful in deciphering the different debts we had and then coming up with a debt...
Student loan debt was my worst enemy before I ran into United Settlement
Student loan debt was my worst enemy before I ran into United Settlement. I really thought I would just have terrible credit for the rest of my life because I will never get out from underneath it. It was...
Business Debt Settlement
If you are a business owner feeling the strain of daily repayment of American Express Merchant Financing or other forms of business debt, pursuing debt settlement could make sense for you.
Debt settlement occurs when a debtor successfully negotiates a payoff amount for less than the total balance owed on a debt. This lower amount is agreed to by the creditor and is fully documented in writing. Though creditors are under no legal obligation to accept debt settlement offers, negotiating and paying lower amounts to settle debts is far more common than you may realize.
United Settlement and American Express Merchant Financing
American Express recently entered the merchant financing marketplace. At United Settlement, we are proud to help those small businesses truly in hardship. We do not deal with businesses that are not already behind on payments and / or on the brink of closing shop. Our core values, integrity, and ethical approach helps us maintain strong working relationship with juggernauts such as American Express.
Our experienced debt settlement professionals have successfully negotiated business debt settlements with American Express for clients who truly were facing serious financial hardship and stress that have resulted in large saving the total balance owed. At United Settlement, our experienced business debt settlement specialists possess past relationships with American Express and more small business lenders.
Our team has an expert level understanding small business landscape, we know when a business is facing hardship and can help get you to financial freedom. See if you qualify for small business debt relief.