American Express Merchant Financing

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 are 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.

Does American Express Merchant Financing charge a late fee?

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?

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 and permanent resident / green card holders are eligible to apply for the services offered by American Express Merchant Financing. 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