Small businesses are benefited in many ways from American Express. This financing company has several options for small business, at the forefronts of which are the Term Loan and the Line of Credit. The main aspects of these two loans are as follows: 1. American Express Term Loan – The American Express Term Loan is suitable for long term investments on businesses. This loan is appropriate for investments up to $100,000 in dollar value, and can be payable in 24 to 36 months. If financing above $50,000 is required, then it is necessary to show additional documentation from the financial point of view.
2. American Express Line of Credit – The American Express Line of Credit is a loan suitable for covering the ongoing cash flow needs. The overheads included in this category are the payrolls of the employees, inventory purchases, seasonal fluctuation costs, payments to the vendors and such. For this loan, repayments have to be made in full at the end of each month. Again, the maximum dollar value of the loan is $100,000 and additional financial documentation is required for amounts over $50,000. For Generico, which is a startup company, the American Express Term Loan would be ideal.
This is because the company’s niche has shown that currently it is in a market low, but in the case of a commodity priced market such as Generico’s there is definite possibility that the prices will go up in respect of the manufacturing flexibility in the long term. For this reason, though Generico might not be able to make the repayments of its credit lines in the short term, in the long term it would be fairly easy to do. That is the reason why the Line of Credit may not work for Generico, as it requires that the payments need to be done in full at the end of each month.
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