Amex has had a fixed fee, short term, loan program, called "Working Capital Terms" which could be used to pay vendors by ACH. I used to use it occasionally, as the fixed fee was decent, equating to 6% or 9% APR, and the payments to vendors were fast and easy. Then Amex started raising the rate, or at least the rate that was available to me. So I stopped using it. And then, although it continued to appear in my online profile, there was never any available borrowing power, so I stopped monitoring it regularly.
I had a number of theories as to why there was no borrowing power.
1. The lack of borrowing power seemed to occur more or less around the time I closed my business platinum card, so perhaps this was tied to having a business charge card.
2. They just didn't like me any more.
3. They had discontinued the program altogether.
Well I can now eliminate theories numbered 1 and 3, because I happened to see that I now have some borrowing power again.
I was wondering if anyone else has had experience within the past few years with the Working Capital Terms program.
Hey @SouthJamaica I don't know what the time-line for all of this was but 2 years ago at the start of the Pandemic I noticed almost all of these short term lenders on the business side started shutting down these programs. We had a couple if them available in case we had to produce a huge amount of product quickly and they all dried up... for a time. Now I can't stop the calls offering us money. Crazy.
Actually I think Amex bought Kabbage and started fine tuning that program.
Yeah, they were great for a quick infusion for large projects. 30, 60 days and get out. Interest was high tho. Amex actually gave us $100,000 at 4% back in 2018 and it worked great. Pandemic caused alot of reshuffling in that space