- The new venture - Working Capital Terms - will approve loans in minutes for existing small-business cardholders. Amounts will range from $1K-$750K, with fees of 0.5% for a 30-day loan, up to 1.5% for a 90-day loan.
“It’s a big opportunity for us to go into an area where businesses want to pay vendors that don’t accept any credit cards," says Susan Sobbott, AmEx's (AXP -2.3%) president of global commercial payments.
- AmEx's edge, says former SBA head, now adviser to Working Capital Terms, Karen Mills, is its longstanding ties to small and mid-size U.S. businesses. "AmEx can do this because they have good credit knowledge."
- On Deck Capital (ONDK -3.2%), Square (SQ -2.2%)