Beware of Amex Working Capital Terms program

[K-in-Boston]

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@SouthJamaica wrote:

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@K-in-Boston wrote:

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@SouthJamaica wrote:

Of course I am, but weren't the trillions of dollars funneled by the Fed to the banks supposed to encourage them to help those industries? What a scam. Those trillions should have been made directly available to the businesses, not to banks.

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Billions not trillions for small business, but the money is for specific uses and the money has been made available directly to the businesses.  Amex Working Capital Terms is a short-term loan between you and Amex, it is not part of a government-sponsored and backed direct business lending program.  American Express does not participate as a lender for those loans, and those loans were introduced after this thread began.

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You're talking about the laws authorizing SBA loans -- PPA and EIDL.

I'm talking about something completely different. The action the Fed took on its own at the start of the lockdown to restore liquidity in the financial markets. At the outset of the lockdown the Fed injected two giant infusions totalling around $3 trillion directly into the financial system. https://www.reuters.com/article/us-health-coronavirus-federalreserve-mar/federal-reserves-3-trillion...

Banks should have been making that money available to customers. Instead they tightened their lending standards.

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But the Fed didn't release those funds to help small businesses.  That's why things like the PPP and EIDL and industry-specific legislation was passed.  Did you have an IPO or massive trading of your company's stock at the beginning of the pandemic?

[SouthJamaica]

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@K-in-Boston wrote:

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@SouthJamaica wrote:

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@K-in-Boston wrote:

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@SouthJamaica wrote:

Of course I am, but weren't the trillions of dollars funneled by the Fed to the banks supposed to encourage them to help those industries? What a scam. Those trillions should have been made directly available to the businesses, not to banks.

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Billions not trillions for small business, but the money is for specific uses and the money has been made available directly to the businesses.  Amex Working Capital Terms is a short-term loan between you and Amex, it is not part of a government-sponsored and backed direct business lending program.  American Express does not participate as a lender for those loans, and those loans were introduced after this thread began.

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You're talking about the laws authorizing SBA loans -- PPA and EIDL.

I'm talking about something completely different. The action the Fed took on its own at the start of the lockdown to restore liquidity in the financial markets. At the outset of the lockdown the Fed injected two giant infusions totalling around $3 trillion directly into the financial system. https://www.reuters.com/article/us-health-coronavirus-federalreserve-mar/federal-reserves-3-trillion...

Banks should have been making that money available to customers. Instead they tightened their lending standards.

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But the Fed didn't release those funds to help small businesses.  ..............

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As a matter of fact that was one of the main reasons they released those funds.

“Importantly, and this often gets lost, our actions that ease financial markets spill into better rates for borrowers,” including businesses and households, she said."

https://www.marketwatch.com/story/feds-daly-defends-3-trillion-in-asset-purchases-saying-they-helped...

[K-in-Boston]

@SouthJamaica  That's a non sequitur.  "Spill into..." means she feels that it is a consequence of their actions.  There was nothing in those actions that directed those funds to be used to loan to small businesses.  Again, that was the reason for later legislation in regard to the SBA loans and other provisions.   The very next sentence after your quote describes the reason for the Fed influx:

"Since the beginning of March, the Fed’s balance sheet has expanded by just over $3 trillion, with the bulk of it from central bank purchases of Treasurys and agency mortgage-backed securities. These purchases have helped hedge funds and other firms from tail risks..."

[SouthJamaica]

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@K-in-Boston wrote:

@SouthJamaica  That's a non sequitur.  "Spill into..." means she feels that it is a consequence of their actions.  There was nothing in those actions that directed those funds to be used to loan to small businesses.  Again, that was the reason for later legislation in regard to the SBA loans and other provisions.   The very next sentence after your quote describes the reason for the Fed influx:

"Since the beginning of March, the Fed’s balance sheet has expanded by just over $3 trillion, with the bulk of it from central bank purchases of Treasurys and agency mortgage-backed securities. These purchases have helped hedge funds and other firms from tail risks..."

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So the statement of the San Francisco Federal Reserve President is a "non sequitur"?

[dbatl14]

The Amex Working Capital is a complete joke!

I've been enrolled for some years now and the inconsistency is ridiculous. Just last week my available credit consistently change every single day from $40K, the next day it went to $19K, then the next to $20K and then 2 days later back up to $40K and then now it's at 0. Who is willing to rely on that BS when you never know what they decide to make available to you and it consistently changes by the hour of what they willing to loan and how much they want to charge. There much better options than this. Plus requesting the funds is a pain the in the you know what as well. It takes several days just to add a new vendor.

completely useless in my opinion unless you catch it on a good day where you may hit the sweet spot that will only happen once a year.