American Express Partnership With Costco Ends, Shifts Gears to Fundera

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Looking for financing options to fund your small business? You now have a new option to consider on online marketplace Fundera.

A new partnership between American Express and Fundera sees Fundera expanding its small business funding marketplace to now include American Express OPEN charge cards. What this means is that next time you visit Fundera to review different types of funding for your business, you will find the OPEN charge cards featured on the platform.

By getting its OPEN charge cards onto the popular Fundera platform through this new partnership between American Express and Fundera, American Express is hoping to regain the business it recently lost after its credit card partnership with Costco Wholesale Corp. ended this year.

To have its charge cards featured on Fundera, American Express said it will pay an undisclosed amount to the online marketplace for small business loans.

Advantages of OPEN Charge Cards for Small Businesses

For a small business owner, there are several reasons to look at the OPEN charge cards option.

To begin with, there is no pre-set spending limit, which means unlike a credit card the spending limit on these cards can be adjusted depending on your use. Moreover, you get to pay off your balance in full every month.

Another of the features of the cards, according to American Express, is that they make it simpler for you to access funds without having to wait for your loan application to get approved. With a charge card, you get 30 days to pay back the balance without incurring interest. In other words, if you are in need of quick funds, the charge card option is the one you may want to look at.

Yet another feature that may make these cards appealing is the fact that they can be a complementary product to a traditional loan you’ve opted for. For example, if you haven’t qualified for the full loan amount you need, you may use the charge card to meet your financial requirements.

You may also use the card for your future funding needs without having to go through a loan application process all over again.

It’s worth noting that the OPEN cards come with some unique financial management products that are not found with other financing and credit products. Some of these include:

  • ReceiptMatch which allows you to easily add receipts, tags and notes to your transactions,
  • Employee cards that help you control your employee’s spending limits and keep a close eye on where the money is being spent,
  • An Account Management tool that allows you to invite your business partner, assistant, or someone else to manage your account.

American Express’ Growing Focus on Small Businesses

American Express has been eyeing small business lending for quite some time now. In an interview, David Rabkin, American Express’ senior vice president of small business customer acquisition said, “One of the very most important things we’re doing as a company is lending and funding.”

To attract more small businesses, the company has introduced a host of new financing products.

One of its latest offerings is the no annual fee SimplyCash Plus Business Credit Card, which provides greater buying power and more opportunities to earn cash back from a larger list of business expense categories.

Image: American Express

[“source-smallbiztrends”]