I’m not sure if this is new but American Express is offering some of their business credit cardholders access to working capital. Basically if a vendor you work with doesn’t accept credit cards (or American Express credit cards) they will pay the vendor on your behalf and then you pay a fixed flat fee. Fee structure is as follows:
- 30 days: 0.5%-1.75% fixed fee
- 60 days: 1%-3% fixed fee
- 90 days: 1.5%-5.25% fixed fee
American Express is making more of an effort to cross sell credit card customers on other auxiliary products so I’m not surprised to see them targeted high value business clients with this. It’s part of the reason Chase was able to lose money on acquiring Chase Sapphire Reserve customers initially, as they predicted they would be able to convert those customers to investment and home loans at a later date (although that still needs to be proven).
