American Express Small Business Loan: 2025 Rates & Requirements

As an entrepreneur, your focus is on growth, expanding your team, launching new products or boosting your marketing. These goals often require capital, and for many small business owners, a business loan can provide the flexibility to cover unexpected expenses, manage seasonal cash flow or invest in expansion opportunities.

This article provides a comprehensive overview of the American Express Small Business Loan, which is offered as a flexible business line of credit. We will explore how this financing works, the specific American Express business loan requirements and the fee structure.

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Table of contents

Does American Express Offer Small Business Loans? Understanding the American Express Business Line of Credit Key Features and Benefits American Express Business Loan Rates and Fees How to Get an American Express Small Business Loan: Requirements and Eligibility American Express Business Loan Requirements How to Apply for an American Express Small Business Loan Benefits and Considrations of the American Express Business Line of Credit Frequently Asked Questions (FAQs)

Does American Express Offer Small Business Loans?

Yes, American Express (Amex) provides financing for small businesses, but it’s important to understand the structure of the primary offering. Instead of a traditional term loan where you receive a single lump sum, Amex offers the American Express® Business Line of Credit.¹ This product gives approved businesses access to a credit line that they can draw from as needed.

Each time you draw funds, you create a separate loan with its own repayment schedule.¹ This model provides significant flexibility, allowing you to borrow only what you need, when you need it. For small business owners seeking to manage fluctuating expenses or seize time-sensitive opportunities, this line of credit serves the same purpose as many traditional business loans but with a more adaptable framework.

When exploring financing options, it’s important to understand how they work. The American Express Business Line of Credit has unique features, so let’s dive in.

Understanding the American Express Business Line of Credit

The American Express Business Line of Credit is designed to be a simple, fast source of working capital. It helps businesses address short-term needs, from purchasing inventory to covering payroll during a slow month.

Key Features and Benefits

Benefits include:

1. Flexibility: Once approved for a credit line, you can draw funds whenever you need them up to your available limit. This is ideal for managing uneven cash flow or unexpected costs.²
2. Controlled Costs: You only pay fees on the amount you borrow, not on the entire credit line.¹
3. Variable Loan Amount: Businesses can access a line of credit ranging from $2,000 to $250,000. Amex notes that you may be eligible for a larger amount based on their evaluation of your business.¹
4. Simple Application: The online application is designed to be fully automated and can be completed quickly, a key advantage for busy entrepreneurs.

American Express Business Loan Rates and Fees

American Express uses a fee-based structure rather than a traditional annual percentage rate (APR). The fee you pay is determined by the loan amount, the repayment term, and your business’s financial profile.¹ It’s important for applicants to understand that these are fees, not interest rates.

Loans drawn from the line of credit fall into two categories:

Single Repayment Loans: These are very short-term loans that are paid back in one lump sum at the end of the term.

• 1-Month Term: Total loan fee ranges from 0.95% to 1.80%.¹
• 2-Month Term: Total loan fee ranges from 1.90% to 3.75%.¹
• 3-Month Term: Total loan fee ranges from 2.85% to 6.05%.¹

Installment Loans: These loans are repaid in equal monthly payments over a longer term.

• 6-Month Term: Total loan fee ranges from 3% to 9%.¹
• 12-Month Term: Total loan fee ranges from 6% to 18%.¹
• 18-Month Term: Total loan fee ranges from 9% to 27%.¹
• 24-Month Term: Total loan fee ranges from 12% to 18%.¹

For installment loans, a key benefit is that if you repay the loan early, you will not be charged the fees for the remaining months.¹ All loans require a personal guarantee and are secured by your business assets.¹

While flexibility is a major advantage, securing funding depends on meeting certain standards. Let’s take a closer look at the requirements and eligibility for getting an American Express Small Business Loan

How to Get an American Express Small Business Loan: Requirements and Eligibility

Meeting the eligibility criteria is the first step toward securing financing. Amex has clear, published minimums for its Business Line of Credit.

American Express Business Loan Requirements

To apply for the American Express Business Line of Credit, your business must meet the following criteria:

Credit Score: You need a FICO score of at least 660 at the time of application.¹

Time in Business: Your business must have been in operation for at least 12 months.¹

Monthly Revenue: You must have an average monthly revenue of at least $3,000.¹

Applicant Age: The business representative applying must be at least 18 years old.¹

Industry: Your business must operate in an industry eligible for this product.¹

These are baseline requirements, and final approval and the terms you’re offered depend on a holistic review of your business’s financial health, including your history with Amex.¹

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How to Apply for an American Express Small Business Loan

The application process is designed to be straightforward and digital. Follow these steps to prepare and apply.

Step 1: Assess Your Business Needs

Before applying, define exactly why you need the funds and how much you need. Whether it’s for a marketing campaign, equipment purchase or bridging a cash flow gap, having a clear plan will help you determine the right loan amount and term.

Step 2: Check Your Eligibility

Review the American Express business loan requirements listed above. Check your personal FICO score and confirm that your business’ monthly revenue and time in operation meet the minimums.

Step 3: Prepare Your Documentation

While the Amex application is automated, it’s good practice to have your business documents ready. This may include:

• Business tax returns and your employer identification number (EIN)
• Recent business bank statements
• Business registration and license information
• Basic financial statements such as a profit and loss statement

Step 4: Complete the Online Application

Visit the American Express website to start the application. You will be asked to provide information about yourself and your business. The process is designed to be quick, often taking just a few minutes if you have your information on hand.

Step 5: Review and Accept Your Offer

If approved, you will receive an offer detailing your credit limit and the fee structure for various loan terms. Review this carefully to ensure you understand the costs. You can then accept the offer and begin drawing funds as needed.

Understanding the requirements is only part of the decision-making process. To determine if this financing option is the right fit for your business, it’s important to weigh the pros and cons.

Benefits and Considrations of the American Express Business Line of Credit

Benefits

1. Fast and Simple Application: The entire process is online and automated, providing quick decisions
2. Flexible Funding: Draw funds as needed, giving you control over your debt and expenses
3. Trusted Brand: Working with American Express provides a level of security and reliability
4. No Prepayment Penalty (Installment): You can save on fees by paying off installment loans early¹
5. Clear Fee Disclosure: You see the exact fee before you commit to drawing a loan

Considerations

1. Fee-Based Structure: Can be difficult to compare to traditional APR loans, and fees for longer terms can be high
2. Not a Term Loan: Not suitable for businesses needing a large, single lump sum for a major one-time purchase
3. Strict Requirements: A 660 FICO score and one year in business can be barriers for new or struggling companies
4. Personal Guarantee Required: You are personally liable for the debt if your business cannot pay it back¹
5. Secured by Business Assets: Defaulting on the loan could put your business assets at risk¹

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Frequently Asked Questions (FAQs)

What is the minimum credit score for an American Express business loan?

The minimum credit score required for the American Express Business Line of Credit is a FICO score of 660 at the time you apply.¹ Lenders consider credit history to assess risk, and meeting this minimum is a crucial first step for eligibility.

How much can I borrow with an American Express business loan?

The American Express Business Line of Credit offers a loan amount ranging from $2,000 to $250,000.¹ American Express states that some businesses may be approved for a higher credit line based on a comprehensive evaluation of their financial profile, credit history, and existing relationship with Amex.

Is the American Express business loan an actual loan or a line of credit?

It is a business line of credit. This means you are approved for a maximum credit limit and can draw funds from that line as you need them. Each draw creates a separate loan with its own repayment term and fee. This differs from a traditional term loan, where you receive the entire loan amount in a single disbursement.

What is the easiest small business loan to get?

The "easiest" loan depends on your business's qualifications. Generally, merchant cash advances and some online short-term loans have less stringent credit and time-in-business requirements than traditional bank loans or even the Amex line of credit. However, this accessibility often comes at a high cost, with steep fees and interest rates. For businesses that meet the criteria (660+ FICO, 12+ months in business, $3k+ monthly revenue), the American Express Small Business Loan application process is very easy and fast, making it a strong contender for qualified applicants.

How are the American Express business loan interest rates structured?

American Express does not use a traditional interest rate or APR. Instead, it charges a fixed "loan fee" for each loan you draw from your line of credit. The total fee is calculated upfront based on the amount you borrow and the repayment term you select. For installment loans, this fee is spread across your monthly payments.¹

Can an expat with a U.S.-based business apply?

The requirements state that the business representative must be at least 18 years old.¹ The focus is on the business being established and operating in the U.S. An expat who is a legal resident and has the necessary U.S. credentials, such as a Social Security Number or Individual Taxpayer Identification Number needed for a credit check, can typically apply. The business itself must meet all other criteria, including being in operation for at least 12 months with U.S.-based revenue.

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Sources:

1. American Express Business Line of Credit | American Express
2. US Small Business Loans | American Express