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  American Express Merchant Financing

American Express Merchant Financing

in Merchant Cash Advance from American Express National Bank

Claimed

American Express Merchant Financing

Claimed

in Merchant Cash Advance from American Express National Bank

Net Recommendation Score +100

SUPERMONEY NET RECOMMENDATION SCORE

This product is strongly recommended by SuperMoney users with a score of +100, equating to 5 on a 5 point rating scale.

+100

Recommendation score measures the loyalty between a provider and a consumer. It's at +100 if everybody recommends the provider, and at -100 when no one recommends.

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Highlights
Community Rating

Rating not yet determined  

Factor Rate 1.0175 - 1.28
Loan Amount $5,000 - $2,000,000
Minimum Revenue $50,000
APR  (Fee or Charge Based Product) 1.75% - 28%

American Express Merchant Financing Review

American Express Merchant Financing is offered by American Express National Bank, a bank founded in 1850 and based in New York, NY. American Express Merchant Financing is available in 50 states (and Washington, DC).

American Express Merchant Financing FAQ

What APRs does American Express Merchant Financing offer?

The cost of merchant cash advances is typically marketed as a factor rate, not an APR. American Express National Bank offers merchant cash advance with a factor rate starting from 1.0175 to 1.28. The higher the factor rate, the higher the fees. For example, an advance of $20,000 with a factor rate of 1.5 will have a total repayment of $30,000, which includes $10,000 in fees.

However, we ran the numbers and we estimate it has an equivalent APR that ranges from 1.75% APR up to 28% APR.

Does American Express Merchant Financing charge a late fee?

Yes, American Express Merchant Financing charges borrowers with a late payment fee of up to $39 or 2.99% of the past due amount, whichever is greater.

Does American Express Merchant Financing charge prepayment fees?

No, American Express Merchant Financing does not charge prepayment fees. This means you will not have to pay additional fees if you decide to pay the American Express Merchant Financing off early.

How much cash can you advance from American Express Merchant Financing?

Cash advance amounts start at $5,000 and go up to $2,000,000.

What types of repayment method does American Express Merchant Financing accept?

American Express Merchant Financing accepts the following repayment method from the Merchant:

  • Split withholding
  • ACH withholding

How often does American Express Merchant Financing process payments?

American Express Merchant Financing processes payments monthly based on your business's credit card transactions. This means that a percentage of your transactions will automatically be sent to American Express Merchant Financing as payment for your cash advance until the full amount is paid.

Does American Express Merchant Financing charge an origination fee?

No, American Express Merchant Financing does not charge an origination fee. A origination fee is what some lenders charge for processing, underwriting, and funding a business financing product. Typically fees range from 0.5% to 5% of the total amount advanced. Whenever possible, go with lenders that don’t charge origination fees.

What is the minimum repayment amount required by American Express Merchant Financing?

There is no minimum repayment ammount.

What is the estimated funding time for a merchant cash advance via American Express Merchant Financing?

American Express Merchant Financing can approve (or deny) a merchant cash advance application within 168 hours and fund your merchant cash advance within 2 business days of approval.

What are the business financing requirements for American Express Merchant Financing?

To apply for American Express Merchant Financing, you need to provide the following business documentation:

  • Business license
  • Business bank account

What do you need to qualify for American Express Merchant Financing?

Applicants with a credit score of at least 625 and up to 850 may be eligible for American Express Merchant Financing.

American Express Merchant Financing does not have or does not disclose a minimum annual income eligibility requirement.

The Military Lending Act (32 C.F.R. § 232) prohibits lenders from charging service members more than 36% APR on credit extended to covered borrowers. Active duty service members and their covered dependents are eligible to apply for a loan via American Express Merchant Financing. Their rates fall within the limits of The Military Lending Act.

U.S. citizens are, of course, eligible for the services offered by American Express Merchant Financing. Permanent resident / green card holders are also eligible to apply. An uncommon feature is for lenders to offer their services to non-residents. American Express National Bank is one of the few that does.

To qualify, applicants may need to provide the following documentation:

  • Proof of income
  • Recent bank statements
  • Business formation documents
  • Proof of identity
  • U.S. tax identification number

What limitations does American Express Merchant Financing set on the purpose of the merchant cash advance?

American Express Merchant Financing considers merchant cash advance applications for business purposes, such as:

  • Business debt refinance
  • Equipment purchase
  • Hiring
  • Inventory
  • Lease improvement
  • Payroll
  • Product or service expansion
  • Technology investment
  • Working capital
American Express Merchant Financing Disclosure: Must be a qualified American Express accepting Merchant. Because Merchant Financing is a commercial loan, proceeds may only be used for business purposes. In addition, these funds may not be used to pay dividends to principals or pay off debts to an American Express affiliate, to purchase real estate or fund construction, or for personal, family or household purposes. If you pay the loan off early, your business could qualify for a rebate on up to 25% of your fixed fee so long as there’s been no default on your loan and the following criteria are met: •6-month term: 25% rebate if paid in full within 90 days of disbursement; 10% rebate if paid in full within 135 days. •12-month term: 25% rebate if paid in full within 180 days of disbursement; 10% rebate if paid in full within 270 days. •24-month term: 25% rebate if paid in full within 360 days of disbursement; 10% rebate if paid in full within 540 days.
SuperMoney Disclosure: SuperMoney.com is an independent, advertising-supported service. The owner of this website may be compensated in exchange for featured placement of certain sponsored products and services, or your clicking on links posted on this website. Read more...
Editorial Disclaimer: Editorial and user-generated content on this page is not provided or commissioned by the issuer. Opinions expressed here are the author’s alone and have not been approved or otherwise endorsed by any financial institution, including those that are advertising partners.

Message From American Express Merchant Financing

American Express' Merchant Financing offers greater capacity than our business loans product that can be used for any purpose to invest and grow a client's business: equipment, direct expenses, debt. We offer a fixed fee, not an interest rate, with no hidden costs at a highly competitive rate and daily automatic payments.

Contact

Hours of Operation

  • Sunday 7:00am - 12:00pm
  • Monday 7:00am - 12:00pm
  • Tuesday 7:00am - 12:00pm
  • Wednesday 7:00am - 12:00pm
  • Thursday 7:00am - 12:00pm
  • Friday 7:00am - 12:00pm
  • Saturday 7:00am - 12:00pm

Other Services by American Express National Bank

Availability

  Available in 50 states and Washington, D.C.
  • Alabama
  • Alaska
  • Arizona
  • Arkansas
  • California
  • Colorado
  • Connecticut
  • Delaware
  • Washington, DC
  • Florida
  • Georgia
  • Hawaii
  • Idaho
  • Illinois
  • Indiana
  • Iowa
  • Kansas
  • Kentucky
  • Louisiana
  • Maine
  • Maryland
  • Massachusetts
  • Michigan
  • Minnesota
  • Mississippi
  • Missouri
  • Montana
  • Nebraska
  • Nevada
  • New Hampshire
  • New Jersey
  • New Mexico
  • New York
  • North Carolina
  • North Dakota
  • Ohio
  • Oklahoma
  • Oregon
  • Pennsylvania
  • Rhode Island
  • South Carolina
  • South Dakota
  • Tennessee
  • Texas
  • Utah
  • Vermont
  • Virginia
  • Washington
  • West Virginia
  • Wisconsin
  • Wyoming

Feature Breakdown

No Origination Fee
No Prepayment Fee
Late Fee Amount $39
Business Financing Requirements
  • Business License
  • Business Bank Account
Credit Score Range 625 - 850
Immigration Status Considered
  • U.S. Citizen
  • U.S. Permanent Resident
  • Non-Resident
Military Status
  • Active Duty Military
  • Non-Military
  • Veterans
  • Military Dependent
Minimum Months in Business 24
Minimum Revenue $50,000
Verification Documents Required
  • Proof of Income
  • Proof of Identity
  • Business Formation Documents
  • U.S. Tax Identification Number
  • Recent Bank Statements
  • Social Security Number
  • Business Tax Return
  • Employer Identification Number
Collateral Requirement
  • Secured
Intended Use of Funds
  • Equipment Purchase
  • Lease Improvements
  • Product or Service Expansion
  • Working Capital
  • Business Debt Refinance
  • Inventory
  • Payroll
  • Hiring
  • Technology Investment
Approval Speed 168 hours
Credit Bureau Reporting
  • Experian
  • Equifax
  • TransUnion
Funding Time Range 2 - 10 days
Payment Frequency Monthly
Payment Options
  • Automatic Payments
  • Bank Transfer
Repayment Methods
  • Split Withholding
  • ACH Withholding
APR (Fee or Charge Based Product) 1.75% - 28%
Factor Rate 1.0175 - 1.28
Loan Amount $5,000 - $2,000,000
Loan Term 6 - 24 months

American Express Merchant Financing Community Reviews

 

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SUPERMONEY NET RECOMMENDATION SCORE

This product is strongly recommended by SuperMoney users with a score of +100, equating to 5 on a 5 point rating scale.

+100

Recommendation score measures the loyalty between a provider and a consumer. It's at +100 if everybody recommends the provider, and at -100 when no one recommends.

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