Small business owners concerned with cash flow – how much money is available when – will be glad to hear that American Express is adding flexible payment options to their popular Plum Card for small business. Cardholders who pay early will earn a discount on their balance, even if they don’t pay in full, and if they pay at least ten percent of their balance, they’ll be given an extra 60 days to repay the rest.
Charge Card vs. Revolving Credit
The Plum Card is a charge card, not a revolving line of credit, meaning business owners who hold the card have to repay the entire balance each month rather than carrying it over from month to month. That saves on interest charges, but can sometimes cause a bit of a cash-squeeze for businesses, in case of unexpected interruptions in revenue. Payment flexibility eases that squeeze by giving businesses extra days to pay if they need them, and rewarding them if they pay early.
“When times are tight, the extended terms help us with cash flow,” says Michael Guevremont of EPS Safety, regarding his Plum card.
Extra Cushion, Extra Savings
Extra Time – If cardholders pay at least ten percent of their entire balance, they get an extra sixty days to pay the rest of the balance, with no penalty or interest charges.
Pay early and save – If cardholders pay at least ten percent of the full balance within ten days of the statement closing date, they get a 1.5 percent discount on the amount they pay – a benefit that was offered before only if cardholders paid in full.
Choose your own closing date – Plum cardholders are free to choose when they would like their billing cycle to close. Businesses that find it easier to pay at the beginning, middle, or end of the month can make their billing cycle match their payment preference.
Of these flexible terms, Federico Acuna, vice president of Charge Cards at American Express, says: “Our focus is to keep empowering small businesses with the right tools to allow them do more business and that includes helping them understand and manage cash flow. Plum Cardmembers have earned and reinvested hundreds of millions of dollars in their businesses. The current enhancement to the product is addressing the need for greater payment flexibility while still providing unique trade terms on a payment solution.”
AMEX Business Card Benefits
The American Express OPEN Savings program is their plan for small business owners, and gives discounts at partners like FedEx, Hertz, Office Max and Marriott, and more. The OPEN Savings program also syncs with Twitter, Foursquare, and other social media platforms to offer even more savings – something that American Express excels at as they use social media to give customers the biggest savings.
Plum Business cards, like other American Express business charge cards, have no pre-set spending limit, giving customers the option to spend as much as they need – something that helps high-volume, high-spending businesses. “The American Express Plum Card has been a valuable asset in our new business. It has allowed us to make large enough purchases over the past year to compete with larger companies in our area,” says a cardholder from Midwest Technology.