American Express has introduced a new suite of financial products called Business Blueprint, aimed at small businesses as it seeks to strengthen its position in this sector. The launch follows the company’s acquisition of fintech Kabbage in 2020.
Previously, American Express offered small business lines of credit and other services under the Kabbage name, but now it is replacing these with a comprehensive range of products, including a cash flow management center, business checking accounts, and lines of credit, all under the American Express Business Blueprint brand.
Small businesses often face challenges in securing loans due to a lack of established credit scores and limited capital. While some fintech providers have stepped in to offer loans to these businesses, the rates are usually higher compared to traditional banks.
The rates for the American Express Business Blueprint line of credit loans vary, with a six-month loan ranging from 2% to 9% and an 18-month loan costing between 15.75% and 27%.
Business Blueprint offers more than just loans. The platform offers small businesses a convenient and streamlined platform to go about managing finances, including borrowing money, paying bills and vendors, and accepting cards.
The company’s Group President of Global Commercial Services and Credit & Fraud Risk, Anna Marrs, stated that American Express would be a “digital one-stop shop to meet small business financial needs.”
The announcement marks the beginning of an era for American Express, allowing small businesses to do business with the company and run their businesses through Amex.
Business Blueprint offers digital financial products at varying prices. It is free to sign up for, and its digital products are available at varying rates. The launch of the service will take place on Tuesday.
Alenka Grealish, Principal Analyst of Emerging Tech at research firm Celent, said that this move is part of a broader trend among financial service companies to shift from product-based offerings, such as one-off loans, to a more comprehensive suite of services.
American Express recently reported a 9% drop in fourth-quarter profit, as the company had to set aside more money to cover potential bad loans. The company is seeking to diversify its revenue sources beyond the fees charged to merchants accepting its card and fees paid when customers do not pay their entire charge card balance each month.
The introduction of Business Blueprint by American Express is a major step towards providing small businesses with the financial support they need to grow and succeed.
With its comprehensive range of services, including cash flow management, business checking accounts, and lines of credit, small businesses can streamline their financial operations and access the resources they need to grow.
The service is designed to be user-friendly, with a simple sign-up process and digital financial products accessible at varying rates.
In addition to providing financial services, Business Blueprint also offers small businesses the convenience of conducting multiple financial tasks in one place.
This saves time and effort and helps small businesses maintain better control and visibility over their finances.
As Alenka Grealish pointed out, this move by American Express is part of a larger trend among financial service companies to offer a more comprehensive suite of services rather than just product-based offerings.
This shift is driven by the growing demand from small businesses for financial services tailored to their specific needs and providing a seamless experience.
The launch of Business Blueprint marks a new chapter for American Express, and it demonstrates the company’s commitment to supporting small businesses in their growth and success.
With its comprehensive range of services, user-friendly platform, and accessible rates, American Express is poised to become a leading provider of financial services for small businesses.
