American Express Business Line of Credit (formerly Kabbage): 2023 Review
Pros and cons of American Express Business Line of Credit
| Pros | Cons |
|---|---|
Quick, online application Can receive funds between 1 to 3 business days No prepayment penalties | Each draw from the credit line is considered a separate installment loan Confusing fee structure Requires a personal guarantee |
On this page
American Express Business Line of Credit review
American Express Business Line of Credit is the rebranded line of credit formerly known as Kabbage. A business line of credit is a flexible form of funding you can borrow from as you need.
Who is American Express Business Line of Credit for?
- Small business owners with fair to good personal credit. You’ll need a personal credit score of 640 to qualify, so it’s not a good option for businesses with bad credit.
- Borrowers who need fast funding. Borrowers can receive funds as soon as 1 to 3 business days.
- Businesses needing additional funding for short-term expenses. Terms range from 6 months to 18 months, making this a good fit for businesses looking for short-term funding.
American Express Business Line of Credit at a glance
| Product | Loan amounts | Repayment term | Estimated monthly fee range |
|---|---|---|---|
| Line of credit | $2,000 to $250,000 | 6 to 18 months |
|
Line of credit
American Express Business Line of Credit offers a business line of credit ranging from $2,000 to $250,000. The term of the credit line can be 6 months, 12 months or 18 months, with fees varying for each. Each repayment term has a specific minimum borrowing amount: $500 is the minimum draw for a six-month term, $10,000 is the minimum for a 12-month term and $20,000 is the minimum draw for a 18-month term. It’s worth noting that each withdrawal from your credit line is treated as a separate installment loan. American Express Business Line of Credit lines of credit come with no prepayment penalties.
American Express Business Line of Credit borrower requirements
| Minimum annual revenue | $36,000 |
| Minimum time in business | 12 months |
| Minimum credit score | 640 |
American Express Business Line of Credit has fairly straightforward borrower requirements when applying for a line of credit. To be eligible, your business will need $3,000 in monthly revenue, be in operation for at least 12 months and have its own checking account. Your credit score and history will be one of the deciding factors for the repayment term available to you and the maximum amount you can borrow will be determined upon approval. A personal guarantee is also required for American Express Business Line of Credit lines of credit.
Required documents
When applying for a business line of credit with American Express Business Line of Credit, required documents to apply include:
- Business bank account statements
- Name and address of business
- Name and home address of the business owner
- Business industry
- Business tax ID
Alternatives to American Express Business Line of Credit
| American Express Business Line of Credit | Bluevine | OnDeck | |
|---|---|---|---|
| Minimum credit score | 640 | 625 | 625 |
| Loan products offered | Business line of credit | Business line of credit |
|
| Time to funding | 1 to 3 business days | 1 to 3 days or within hours for $15 wire fee | Can receive the same business day |
| Starting interest rates |
| 6.20% simple interest based on a 26-week repayment term | 35.40% APR |
| Maximum loan size | $250,000 | $250,000 |
|
| Minimum annual revenue | $36,000 | $480,000 | $100,000 |
American Express Business Line of Credit vs. Bluevine
With a minimum credit score of 625 and only six months in business to be eligible, a Bluevine line of credit may be somewhat easier to qualify for than American Express Business Line of Credit. The starting interest with Bluevine is also more straightforward: rates start at 6.20% simple interest for a 26-week repayment term. However, one factor that sets American Express Business Line of Credit’s line of credit apart is the option for an 18-month term; Bluevine lines of credit are limited to 6 or 12 months. The time to funding can be about the same for both American Express Business Line of Credit and Bluevine with one to three business days upon approval.
American Express Business Line of Credit vs. OnDeck
OnDeck offers a business line of credit, too, but unlike American Express Business Line of Credit, OnDeck also offers short-term loans. Both OnDeck products have a starting APR of 35.40%, which is easier to understand that American Express Business Line of Credit’s tiered monthly fee structure. With a minimum score of 625, OnDeck’s credit score requirements are lower than American Express Business Line of Credit’s minimum score of 640. But as a tradeoff, OnDeck’s line of credit only extends up to $100,000.