Question 1

What is Merchant Financing?

Accepted Answer

Merchant Financing products are small business loans of $5K - $2M offered to eligible businesses that accept American Express&#174 Cards. These loans are offered in 6, 12, and 24 month terms and are secured by business assets, excluding real property and motor vehicles.

Question 2

How can I apply for a Merchant Financing loan?

Accepted Answer

At this time, American Express is no longer accepting applications for new Merchant Financing loans. Existing customers can log in here to manage their Merchant Financing loan.

Question 3

How can I use Merchant Financing funds?

Accepted Answer

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.

Question 4

What loan terms does Merchant Financing offer?

Accepted Answer

For loans > $35K and &#8804; $2M, we offer 6-month, 12-month, or 24-month terms, and for loans &#8804; $35K, we offer a 12-month term and may require a personal guaranty. Your repayment options will be determined following a review of the information you provide when you apply.

Question 5

What's a fixed fee?

Accepted Answer

A fixed fee is a percentage of your loan amount and is repaid automatically over the course of your term as part of your total repayment. With Merchant Financing, there's no interest rate or variable APR.

Question 6

How is my fixed fee determined?

Accepted Answer

Your fixed fee is determined by American Express and is based on the creditworthiness of you and/or your business and other factors, including your processing arrangements, referral source, and the length of your term. Fees range between 1.75% and 7% for a 6-month term, 3.5% and 14% for a 12-month term, and 7% and 28% for a 24-month term.

Question 7

How do I contact customer service about my existing loan?

Accepted Answer

Please call a Merchant Financing Specialist at 1-855-298-1209, Monday through Friday, 8 a.m. - 8 p.m. ET.

Question 8

How do I repay?

Accepted Answer

Your repayment method is determined by American Express and is based on the creditworthiness of you and/or your business and other factors, including your processing arrangements, loan amount, term, and history with American Express.

Below are the possible repayment methods:

Repay with debit ACH

A fixed amount will be automatically debited from your business bank account(s) each business day. Fees for insufficient funds may apply.

Repay with receivables

A percentage of your receivables will be used by American Express to repay your loan (every day your business has receivables) and the rest will be sent to your business bank account, as usual. This percentage, also called your repayment rate, is determined in part by the loan amount, term, and volume of transactions at your business, and will remain constant so long as you remain current on your loan.

Receivables-based repayment can work in three possible ways:

Receivables from only American Express transactions. We’ll use a percentage of your daily American Express transactions to repay your loan.
Receivables from all credit and debit card transactions via split funding. We’ll use a percentage of your daily transactions from all credit and debit cards including Visa, MasterCard, Discover, Diners Club and American Express to repay your loan. We will partner with your payments processor to have them send us the percentage owed.
Receivables from all credit and debit card transactions via transfer account

We'll use a percentage of your daily transactions from all credit and debit cards including Visa, MasterCard, Discover, Diners Club and American Express to repay your loan. We will open a temporary transfer account with the transfer account bank on your behalf, to which your payments processor will send your total receivables. From there, Wells Fargo will send us the percentage owed. Please note, this repayment method may be unavailable in Puerto Rico and the Virgin Islands.

Question 9

Can I repay early?

Accepted Answer

Yes; there are no penalties for repaying early. In fact, 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.

Question 10

What if I'm unable to repay on time?

Accepted Answer

If you begin to fall behind on your repayment schedule, we'll help you catch up by increasing your repayment rate. We may also initiate a debit ACH from your business bank account on file for the past due amount, and take other action. In addition, if your loan becomes past due, you may incur a late fee of $39 or 2.99% of the past due amount, whichever is greater.

If, at the end of the term, the outstanding balance of your 6-, 12-, or 24-month loan is not fully repaid, the repayment rate will increase to 100% until it's repaid. We may also initiate a debit ACH from your business bank account on file for the unpaid amount, and take other action.

COVID-19 Update:

American Express^® Merchant Financing

American Express is not accepting new customers for Merchant Financing. Existing customers can log in to manage their accounts.

COVID-19 Update:

American Express® Merchant Financing

American Express is not accepting new customers for Merchant Financing. Existing customers can log in to manage their accounts.

American Express^® Merchant Financing