American Express is launching a suite of financial service products for small businesses as it aims build up its presence in the small business sector, according to an Associated Press report.
The services, called Business Blueprint, stem from the credit card giant’s acquisition of fintech Kabbage in 2020. American Express had been offering small business lines of credit and other services under the Kabbage moniker, but now it will replace those with a suite of products — from a cash flow management hub to business checking accounts and lines of credit — under the name American Express Business Blueprint.
Small businesses often have difficulty securing loans since they lack established credit scores and often don’t have a lot of capital on hand. Some fintech providers have stepped in to offer loans to small businesses, but often at steeper rates compared to traditional banks. Rates on AmEx Business Blueprint line of credit loans vary widely — from 2% to 9% for a six-month loan to 15.75% to 27% for an 18-month loan.
AmEx said Business Blueprint is about more than just loans, however. It is designed to let small businesses conduct a wide range of tasks they might otherwise do separately — taking out loans, paying bills and vendors, and accepting card payments — all in one place.
It’s free to sign up for Business Blueprint, and its digital financial products are available at varying rates.
