Business loans represent American Express’s latest effort to improve access to credit for small businesses through digital solutions.
Offering unsecured short-term loans of up to $ 50,000, American Express offers small businesses quick access to growth or debt consolidation opportunities.
The application process is 100% digital, with existing AmEx OPEN card owners following a three-step online system that uses pre-approved loan amounts and rates tailored to their business.
The move comes as big banks enter the online lending space, while their smaller rivals are making their mark in the SME landscape.
Goldman Sachs is a notable example, highlighting its online lending initiatives as the main driver of the bank’s revenue over the next three years. By 2020, they plan to generate more than $ 2 billion in net income from its lending and financing efforts.
This is not the first time that AmEx has embarked on online lending, having launched its Working capital conditions short-term lending platform in 2016.
As the latest addition to its online finance product line, business loans are launched in recognition of the need for smaller, faster loans that can cover generic business needs.
A study conducted by American Express this year shows that 74 percent of small businesses have a positive outlook on the economy, and 57 percent plan to invest in their business.
Gina Taylor Cotter, Managing Director and Senior Vice President of Global Trade Finance for American Express, said, “Small businesses need access to capital with a straightforward application process and competitive rates. We have designed business loans to help meet this need for smaller, general purpose loans.
