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Frequently Asked Questions
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1-855-298-1209
Overview

What’s Merchant Financing?

Merchant Financing products are small business loans of $5K - $2M exclusively for eligible Merchants that accept American Express® Cards. Merchants benefit from a fixed fee, not an interest rate, and daily automatic repayment. These loans are offered in 6, 12, and 24 month terms and are secured by business assets, excluding real property and motor vehicles. Merchant Financing is not a purchase or discounting of receivables or a cash advance.

Am I eligible for Merchant Financing?

To be eligible for Merchant Financing, your business must:

  • Accept American Express Cards (to qualify for 24-month financing, you must have accepted American Express for the past 24 months)
  • Have a minimum of $50,000 in annual business revenue
  • Have a minimum of $12,000 in annual credit and debit receivables
  • Have been in business for at least 24 months

Please note that not all industries will be eligible for Merchant Financing. For the full list of ineligible industries, please contact a Merchant Financing Specialist at 1-855-298-1209.

How does getting a Merchant Financing loan work?

  1. Review the details of Merchant Financing on this website or by calling a Merchant Financing Specialist at 1-855-298-1209.
  2. Apply online or by phone.
  3. If approved, review and accept the terms of your loan agreement and then receive loan funds directly into your business bank account.
  4. Repay automatically from your receivables or business bank account.
  5. Pay off your loan—if you repay early you may be eligible for an early repayment rebate on your fixed fee.
  6. Apply to renew for additional funds.

How can I use Merchant Financing funds?

Merchant Financing funds are ideal for boosting cash flow, upgrading equipment, adding staff, or funding large projects. Because Merchant Financing is a commercial loan, proceeds may only be used for business purposes and will be disbursed only to the business account into which you receive settlements for your credit and debit card transactions. In addition, these funds may not be used to pay dividends to principals or pay off debts to an American Express affiliate, to purchase real estate or fund construction, or for personal, family or household purposes.

What do I need in order to apply?

Along with your basic contact information, you will be asked to provide the following when you apply:

  • Tax ID or American Express Merchant Account Number
  • Total Annual Credit & Debit Card Receivables
  • Credit Card Processor Name and Number
  • Total Annual Business Revenue
  • Total Annual Personal Income
  • Social Security Number
  • Date of Birth
  • Percentage of Ownership
  • Type of Business Entity
  • Business Bank Account Details (bank name, routing number, account number)

You may be asked to provide additional details and documentation depending on the size of your loan and your repayment method. A few examples are: business financials (such as tax returns, bank statements, or monthly statements from processors), personal credit score and proof of ownership. For a full list, please contact a Merchant Financing Specialist at 1-855-298-1209.

What does pre-approval mean?

After answering a few application questions, you may be notified that you’re “pre-approved” for your loan. Pre-approval means your business is qualified and meets our preliminary approval requirements, but it doesn't guarantee final approval. Approval of your application is subject to there being no material changes to the financial condition or creditworthiness of you and/or your business, fraud review and other conditions.

What loan terms does Merchant Financing offer?

Merchant Financing loans are term loans repaid daily over a set period of time. The specific terms of your loan—loan amount, fixed fee, term, and repayment method--will be determined following a review of the information you provide when you apply. We offer:

6-Month Term

  • Loans between $36K - $2M
  • 1.75% - 7% fixed fee

12-Month Term

  • Loans between $5K - $2M (for loans ≤ $35,000, a personal guaranty may be required)
  • 3.5% - 14% fixed fee

24-Month Term

  • Loans between $36K - $2M
  • 7% - 28% fixed fee
Fixed Fee

What’s a fixed fee?

A fixed fee is a percentage of your loan amount. It is the amount you pay for your loan and is fully earned by American Express when your funds are disbursed. The fixed fee is repaid automatically as part of your total repayment. With Merchant Financing, there’s no interest rate or variable APR. Fixed fees will vary by customer based on the creditworthiness of you and/or your business and other factors discussed below.

How is my fixed fee determined?

Your fixed fee is determined by American Express. Fixed fees will vary by customer and are based on the creditworthiness of you and/or your business and other factors, including your processing arrangements, referral source, and term. Fixed fees range from 1.75% - 28% of your loan amount and vary by the length of your term.

Fixed Fees by Term

  • 6-Month Term: 1.75% - 7% of your loan amount
  • 12-Month Term: 3.5% - 14% of your loan amount
  • 24-Month Term: 7% - 28% of your loan amount
Funding

How long does it take to get funded?

We do our best to disburse funds as quickly as possible, so you can get back to work. Timing depends, in part, on your processing arrangements, repayment method, loan amount, and term. While we can’t guarantee a set timeline for funding, for loans ≤ $35K, funds are typically disbursed on the next business day after your application is approved (if approved between 9am-6pm ET, M-F, expect Federal bank holidays). All other funds are typically disbursed 2-5 business days after your application is approved.

For more information, please call 1-855-298-1209.

How do I get my funds?

Your funds will be direct deposited in one lump sum into the business bank account into which you receive settlements for your credit and debit card transactions.

Repayment

How do I repay?

Repayment is automatic through your receivables or business bank account. Your repayment method is determined by American Express. Repayment method will vary by customer and is based on the creditworthiness of you and/or your business and other factors, including your processing arrangements, loan amount, term, and history with American Express.

Below are the four possible repayment methods:

Please note: “Receivables” are amounts owed to your business based on American Express credit and debit card transactions. “Total Receivables” are your receivables from all credit and debit card transactions – including Visa, MasterCard, Discover, and Diners Club, as well as American Express.

1. Payback from American Express Receivables Only

A percentage of your daily American Express receivables will be used by American Express to repay your loan (everyday your business has receivables). This percentage is your repayment rate and is determined, in part, by the loan amount, term, and the volume of transactions at your business. Your repayment rate will remain constant so long as you remain current on your loan. All remaining amounts will be sent to your business bank account, as usual.

2. Payback from Total Receivables via “Split Funding” (processor dependent)

Merchant Financing will partner with your payments processor to have your processor send a percentage of your total receivables to American Express to repay your loan (everyday your business has receivables). This percentage is your repayment rate and is determined, in part, by the loan amount, term, and the volume of transactions at your business. Your repayment rate will remain constant so long as you remain current on your loan. All remaining amounts will be sent to your business bank account, as usual.

3. Payback from Total Receivables via Transfer Account

Merchant Financing will open a temporary transfer account with Wells Fargo on your behalf, to which your payments processor will send your total receivables (everyday your business has receivables). From there, Wells Fargo will send a percentage of your total receivables to American Express to repay your loan. This percentage is your repayment rate and is determined, in part, by the loan amount, term, and the volume of transactions at your business. Your repayment rate will remain constant so long as you remain current on your loan. All remaining amounts will be sent to your business bank account, as usual. Please note, this repayment method may be unavailable in Puerto Rico and the Virgin Islands.

4. Payback from Business Bank Account via Debit ACH

A fixed amount will be automatically debited from your business bank account(s) each business day. Fees for insufficient funds may apply.

What if I repay early?

There are no penalties for repaying early. Instead, your business could qualify for a rebate up to 25% of your fixed fee so long as there’s been no default on your loan and the following criteria are met:

6-Month Term

25% rebate if paid in full within 90 days of disbursement; 10% rebate if paid in full within 135 days.

12-Month Term

25% rebate if paid in full within 180 days of disbursement; 10% rebate if paid in full within 270 days.

24-Month Term

25% rebate if paid in full within 360 days of disbursement; 10% rebate if paid in full within 540 days.

What if I’m unable to repay on time?

We tailor your repayment plan to work for your business. If you begin to fall behind on your repayment schedule, we’ll help you catch up by increasing your repayment rate. We may also initiate a debit ACH from your business bank account on file for the past due amount, and take other action. In addition, if your loan becomes past due, you may incur a late fee of $39 or 2.99% of the past due amount, whichever is greater.

If, at the end of the term, the outstanding balance of your 6-,12-, or 24-month loan is not fully repaid, the repayment rate will increase to 100% until it’s repaid. We may also initiate a debit ACH from your business bank account on file for the unpaid amount, and take other action.

For more details, please refer to your Business Loan and Security Agreement.

Renew

How do I renew my loan?

You may be eligible to apply for more money once you’ve repaid at least 50% of your loan. The remaining balance of your loan must be paid in full before you can receive your new funds.

To apply, please call a Merchant Financing Specialist at 1-855-298-1209.

How can I repay my loan balance to get my renewal funds?

If you're approved to renew, we will offer you one of the following repayment options:

  1. Use a portion of your new funds to pay off your existing loan balance. The remaining funds will be deposited into your business bank account.
  2. Make a one-time payment to pay off your existing loan balance. Then the full amount of your new loan will be deposited into your business bank account.

If you repay your loan balance early enough, you will get a rebate up to 25% of your original loan's fixed fee so long as there’s been no default on your loan and the following criteria are met:

6-Month Term

25% rebate if paid in full within 90 days of disbursement; 10% rebate if paid in full within 135 days.

12-Month Term

25% rebate if paid in full within 180 days of disbursement; 10% rebate if paid in full within 270 days.

24-Month Term

25% rebate if paid in full within 360 days of disbursement; 10% rebate if paid in full within 540 days.

Your new loan will also be eligible for an early repayment rebate if the above criteria are met.

Get Started: 1-855-298-1209