Our Take
The bottom line:
American Express Business Blueprint™ is a good option for business owners with fair credit who want access to working capital.
American Express® Business Line of Credit
Max Loan Amount
$250,000
Min. credit score
660
Pros & Cons
Pros
- Streamlined application process with minimal paperwork.
- Financing from $2,000 to $250,000 available.
- Accepts borrowers with a minimum FICO score of at least 660 at the time of application.
- Monthly repayment schedule (as opposed to daily or weekly).
- No prepayment penalties, account maintenance fees or draw fees.
Cons
- Must have online checking or PayPal account to verify cash flow.
- Personal guarantee required.
- Complex monthly fee structure makes it difficult to compare costs to other lenders.
Compare to Other Lenders
OnDeck - Line of credit | Bluevine - Line of credit |
|---|---|
Max loan amount $100,000 | Max loan amount $250,000 |
Min. credit score 625 | Min. credit score 625 |
Full Review
Kabbage rebranded to American Express Business Blueprint™ in February 2023. Business Blueprint includes the American Express® Business Line of Credit, among other products.
The American Express® Business Line of Credit is available to borrowers with a minimum FICO score of at least
660
at the time of application. (Note that the required FICO score may be higher based on your relationship with American Express, credit history, and other factors.) This product is known for its streamlined application process in which borrowers can connect their business checking accounts to avoid application paperwork. Keep in mind that all businesses are unique and subject to approval and review when applying for a line of credit.How Much Do You Need?
The American Express® Business Line of Credit is best for borrowers who:
- Don’t have perfect personal credit: While underwriting your loan, American Express focuses on less traditional information like banking, accounting and e-commerce data. That makes it a good fit for business owners with rocky credit histories.
- Prefer a short repayment period: American Express Business Blueprint™ offers business lines of credit from $2,000 to $250,000 with repayment terms of six, 12 or 18 months.
American Express® Business Line of Credit
Loan amount | $2,000 to $250,000. |
Monthly fees | Instead of traditional interest, American Express charges monthly fees depending on your loan's term. Total monthly fees incurred over the loan term range are:
|
Additional fees |
|
Terms | 6, 12 or 18 months. |
Repayment schedule | Monthly. |
» MORE: Compare working capital loans
Where American Express® Business Line of Credit stands out
Streamlined application process
The application process for the American Express® Business Line of Credit doesn’t require paperwork. Instead, you connect a business checking account, bookkeeping software or payment solution (such as PayPal or Square) to the American Express Business Blueprint™ platform and the company uses data from these accounts to evaluate your eligibility.
Available to startup businesses and business owners with fair credit
Although the American Express® Business Line of Credit may not be as startup-friendly as some competitors (who work with companies with only six months in business), borrowers who have started their business at least a year ago can qualify for this product. Startup business lines of credit can be used to manage cash flow gaps, cover short-term expenses or take advantage of unexpected opportunities.
Similarly, if you have fair credit — and can’t qualify for a bank small-business loan — the American Express® Business Line of Credit can be a good choice for access to working capital. Although American Express requires a minimum FICO score of at least
660
at the time of application, the company primarily considers data from the accounts you link, your average monthly revenue and the number of years you’ve been in business to evaluate your application, determine your credit limit and set your fees.No extra fees
Whereas some lenders may charge draw fees or account maintenance fees with their line of credit products, American Express does not charge any extraneous fees. With an American Express® Business Line of Credit, you’ll pay a monthly fee (equivalent to interest) during the months you have an outstanding balance. American Express does not charge application fees, origination fees, annual fees or monthly maintenance fees.
You also have the option to pay back your loan early; American Express does not charge any prepayment penalties.
Where American Express® Business Line of Credit falls short
Complex fee structure
American Express charges a fee each month that you have an outstanding balance — instead of a more traditional interest rate. You’ll pay this fee in addition to your monthly loan principal payments.
The specific fee you receive will vary based on your loan term, as well as your creditworthiness and other factors. Total monthly fees incurred over the loan term range are:
- Six-month term: 3% to 9%.
- 12-month term: 6% to 18%.
- 18-month term: 9% to 27%.
Each time you draw from your line of credit, American Express issues you a separate installment loan with its own loan agreement. You’ll then pay fees on each individual loan.
American Express' proprietary fee structure makes it difficult to compare their costs to other lenders. You should always calculate these types of fees into an annual percentage rate to understand the total borrowing costs.
Not suitable for all businesses
American Express offers small-business loans only in the form of lines of credit and doesn’t offer any other products, such as term loans or invoice financing. If you’d prefer a different type of business loan, you’ll have to consider other lenders.
The American Express® Business Line of Credit is also available only in small amounts — from $2,000 to $250,000 — with short terms of six, 12 or 18 months. Businesses that are looking for larger loan amounts or longer terms will want to explore alternative options.
American Express® Business Line of Credit requirements
Minimum borrower eligibility requirements include:
- A minimum FICO score of at least660at the time of application.
- You started your business at least a year ago.
- Average monthly revenue of at least $3,000.
You must be able to link a bank account that shows business revenue to qualify for an American Express® Business Line of Credit. It's also important to keep in mind that all businesses are unique and subject to approval and review.
How to apply for an American Express® Business Line of Credit
You can apply for an American Express® Business Line of Credit online. First, you’ll need to create and log in to your American Express account. Then, you will connect your business checking account and any additional accounts to the American Express Business Blueprint™ platform.
American Express will also ask for basic information about you and your business including:
- Your name, home address and phone number.
- Your business name, address and phone number.
- Your business industry.
- Your business tax ID.
- Your Social Security number.
Before you submit your application, American Express will ask you to consent to a hard pull on your credit.
If you are approved for an American Express® Business Line of Credit, you’ll receive a loan agreement that lays out your credit line amount, term length and monthly fees.
You will have to sign a personal guarantee as part of your loan agreement.
Keep in mind that when you draw on your credit line, American Express does have minimum withdrawal requirements based on your term length. For six-month terms, the minimum withdrawal amount is $500, for 12-month terms, the minimum is $10,000 and for 18-month terms, the minimum is $20,000.
Alternatives to the American Express® Business Line of Credit
OnDeck
Like American Express, online lender OnDeck has a streamlined application process. OnDeck offers business lines of credit of up to $100,000 and term loans of up to $250,000. OnDeck lines of credit can have weekly or monthly repayments, whereas American Express’ repayments are monthly, but OnDeck will accept a minimum credit score of
625
. Interest rates on both products run high compared with American Express, however.For more details on how they compare, read our American Express Business Blueprint™ vs. OnDeck comparison review.
Bluevine
Bluevine offers a business line of credit up to $250,000. And similar to OnDeck, Bluevine can approve applications in just minutes.
Interest rates on a Bluevine line of credit range from approximately
20
% to 50
% APR with terms of six or 12 months. You may be able to qualify with a credit score of 625 or higher.Learn more about these products in our Bluevine small-business loans review.
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To see and compare loan options, check out NerdWallet's list of best small-business loans.
Our recommendations are based on the market scope and track record of lenders, the needs of business owners, and an analysis of rates and other factors so that you can make the right financing decision.
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