BEVERLY HILLS, CA - SEPTEMBER 20: Barbara Corcoran attends the premiere of ABC's 'Shark Tank' Season 9 at The Paley Center for Media on September 20, 2017 in Beverly Hills, California. (Photo by Phillip Faraone/Patrick McMullan via Getty Images)
As of 2016, there were approximately 28.8 million small businesses, which accounted for 99.7% of all U.S. businesses, according to the Small Business Administration. That’s a tremendous economic force that is fueling the country’s growth and framing opportunity for more entrepreneurs and freelancers to join the ranks.
Even with positive signs that point to the ongoing growth in small businesses, challenges remain. For those already operating a business, the National Small Business Association found that growth can be slowed by economic uncertainty and limited access to credit. For example, Biz2Credit reported that small business loan approval rates at big banks remained at 24.1% in March 2017 while other lending institutions had similar levels of loan approval.
A New Credit Option for Small Businesses
That leaves many small business owners to fund their business purchases through credit cards, which typically only give them thirty days to repay before interest charges kick in and drive up the cost of repayment.
Recognizing the need to help these small business owners through additional options, American Express (AmEx) partnered with Amazon to introduce the Amazon Business American Express Card and recruited Shark Tank’s Barbara Corcoran to serve as spokesperson for the new credit option. Together, they created a business credit card option that alleviates many small business pain points.
Longer Repayment Terms
Available only in the U.S., the business credit card offers some incredible benefits like the most flexible payment terms and purchase with no annual credit card fee or minimum credit score requirements. Barbara Corcoran noted that having 30 days to repay especially large purchases can be detrimental to a business, so the 90 days that this AmEx card provides is a gamechanger.
“For example, one of my favorite companies I’ve backed is Daisy Cakes,” shares Corcoran, “and it’s doing extraordinarily well. However, Kim, the owner, used to send the cakes out in these beautiful tins. Now, shehas switched to boxes. The reason she stopped using the tins was because they were expensive unless she bought them in bulk. However, she didn’t have the cash flow to do it. With this AmEx card, Kim could probably think about going back to using those gorgeous tins. She personifies the type of small business owner who is a natural fit for this small business card.”
The 90 days of no payments for Prime Amazon members and 60 days for non-Prime customers mean no payments or interest during that time period. That can be a welcome relief for small business owners whose cash flow needs that kind of break to recover from any larger purchases that can help the business grow.
Amazon Rewards
Recognizing that small business owners are a significant part of their customer base, Amazon knew this partnership with AmEx would provide them with a way to reward and their small business customers and thank them for their loyalty.
If small business owners don’t need the longer repayment period, they can opt for the five percent back for eligible Prime members (including Business Prime) on U.S. purchases through Amazon’s brands, including Amazon Business, Amazon Web Services, Amazon.com, and Whole Foods Market. For those small business owners who aren’t Prime members, they can receive three percent back on U.S. purchases made through Amazon Business, Amazon Web Services, Amazon.com, and Whole Foods Market.
The Rewards Grow
And, if those incentives weren’t enough in terms of the cash flow assistance and savings, the card delivers further benefits. There is two percent back on purchases with the card from U.S. restaurants and gas stations and on wireless telephone services from U.S. service providers. Then, there are additional rewards of one percent back on other purchases that meet eligibility requirements.
The cardmember rewards can be used at Amazon Business and Amazon.com. Alternatively, small business owners can apply their rewards toward a purchase that’s already listed on their statement. Eligible Prime members who sign up for the new Amex card are treated to a $125 Amazon.com gift card while non-Prime customers receive a $100 Amazon.com gift card.
Tracking Functionality
Corcoran also explained that she sees the struggle that small business owners have in terms of recognizing the importance of organizing expenses but taking too much of their valuable time trying to get it done.
She added, “A standout feature is the immediate access to line-item explanations of what I spent on the card. The breakdowns are included in the monthly bill, making it easy to see cost per item, quantity, and the business expense category. This level of trackability solves a real dilemma for small business owners.”
Other Incredible Features
It’s hard to imagine that there’s further reasons to consider this business credit card, but there are additional features of note. Small business owners can get no fee employee cards. Also, they have access to Spend ManagerSM and Connect to Quickbooks®.
Certain Amazon Business American Express Card members may also receive a complimentary year of the Business Prime Essentials plan, which is a $179 value. This benefit is available to those who sign-up for a free trial and add a workmate to their Amazon Business account within 30 days of having their card approved.
A Boost for the Small Business Owner
This is a “prime” example of companies starting to take notice of what small businesses need in terms of assistance. In this case, the partnership between American Express, Amazon, and Barbara Corcoran offers small business owners pays off.
The business credit card option offers a way to improve cash flow, avoid interest expense, save money on purchases, and more efficiently organize their financial information. In return, this level of assistance gives these small businesses a greater chance to thrive and expand.
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