American Express wants to enable small businesses to make even larger purchases and is offering a new credit card product to do so.
In an announcement on Tuesday (Jan. 19), American Express OPEN revealed its newest commercial card, the SimplyCash Plus Business Credit Card. According to the company, the tool allows users to spend beyond their credit limit when they need to make higher-value purchases for things like equipment and inventory.
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To allow this, American Express requires users to repay, at minimum, the amount that was spent above their limit in full each month. For purchases made beyond the spending limit, small business users can still earn cash back, the company added.
“We consistently hear that one of small businesses’ largest challenges is managing cash flow,” said American Express OPEN Senior Vice President and General Manager Audrey Hendley in a statement. “The SimplyCash Plus Card combines our charge and lending capabilities to provide a product that offers greater buying power to help with the ebb and flow of a small business, as well as more opportunities to earn valuable cash back, even on larger business expenses.”
According to American Express OPEN, a recent survey found that the majority of SMEs see card products as important to help grow their businesses. More than three-quarters added that they would welcome a spending limit increase at least once a year.
Further, 78 percent said that rewards from credit card purchases are important to their businesses, and nearly three-quarters said cash back rewards are the most beneficial.
“This card empowers small businesses to quickly and seamlessly seize and fund opportunities for growth,” Hendley added. The new card will be available to small business users this spring, American Express OPEN said.