AmEx Debuts Flexible Payments for Small Businesses

The new offering, announced in a Thursday (Feb. 5) news release emailed to PYMNTS, is aimed at giving businesses more control over their cash flow needs with an instant line of credit.

“We know that cash flow is vital for small businesses and that’s why we’re excited to launch the Flexible Payment Option feature, which will provide business owners the financial flexibility they need to survive,” said Ruchi Sharma, vice president for UK commercial at American Express.

“By providing an instant line of credit when needed, small business owners don’t have to use personal savings, take out a separate loan or miss out on the next business opportunity when it arises.”

According to the release, FPO is available for AmEx Business Gold and Platinum cardholders, giving them the option to repay their statement balances in full or pay in portions over time and with interest.

The new offering comes at a moment when cash flow timing is especially critical for small and medium-sized businesses (SMBs), as PYMNTS wrote last month.

“For much of the last decade, SMBs operated in a forgiving environment. Low rates extended runways and consumers spent freely,” that report said.

“Although capital was never abundant for small firms, it was available enough to cover timing mismatches. That cushion has increasingly disappeared. Higher borrowing costs, stickier inflation in inputs and more conservative lenders have exposed the fragility beneath SMB revenue growth and business viability.”

At the same time, recent PYMNTS Intelligence research shows that many small businesses are confident about accessing new credit. The research found that 83% of SMBs said they believed they would get approved for a new business credit card, an indication that underwriting is not the chief concern for many companies.

In addition, the research showed that business credit cards are used for planned spending, with 53% of business credit card use is mostly or nearly always planned, a sign that these cards are often viewed as a day-to-day operating tool instead of a last resort.

“New card models are drawing strong interest, as 56% of firms are very or extremely interested in a card that lets them choose between earning rewards or getting a lower APR each statement period,” PYMNTS wrote recently.

The research also “highlighted demand for options such as payment due dates aligned to cash flow or receivables, virtual card numbers for specific purchases and customizable spending limits by employee or department.”

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