Business Finance in America

The various business enterprises in United States need finance for various activities like the expansion etc as it is needed in the other parts of the world. One cannot imagine a new business or the expansion of the business without the finance. In case of big industries, the requirement of finance becomes even more important. This is the reason why there are so many financial institutions like banks etc that extend finance to the various business houses and

enterprises in the United States. Also, it is not that only the finance is required but also at the right time. Thus, timely arrangements of finance are as important as the need for the finance. Keeping in view the above aspect, many a financial institutions in U.S provide finance very fast so that it can be utilized by the business house as soon possible and the purpose can be solved. One of such types of institution is the American Express. Let us discuss more about it in our next part of discussion.

American Express Business Finance

Understanding the need of finance, the American Express provides various types of loans to the business community in America. The remarkable aspect of these loans is that these are available in a very short span of time. Apart from the timely disbursal, other features of the American Express include the 100 percent financing, same day credit, simple one page application and the streamlined documentation that helps the customer to obtain the hassle free business finance. These features definitely makes the American Express one of the most sought after providers of the business finance in the United States. Also, it provides its customers the wide range of financial products so that their all the needs are fulfilled as far as the requirement of business are concerned. Let us discuss the various types of loans that are being provided by the American Express institution to the business community in U.S.

Various Types of Business Finance

The various types of business finance that is provided by the American Express are:

Equipment loan: This type of loan is basically meant for the purchase of different types of equipment that are used in the business procedures. It includes all the machinery, or even heavy vehicles used in the business like the truck etc. Also, these loans are available for the new as well as used

equipment. One of the features of this loan that makes it quite attractive is that a person can easily get the 100% of the purchase value of the equipment. As far as the repayment is considered, it can easily be repaid in the short term as well as the long term. The rate of interest that is being charged on these loans is generally fixed and thus, it does not fluctuate. The maximum time period allowed for the repayment of the loan is 15 years. So, if a person or the business house wishes to purchase the equipment for the business setup or the expansion, the American Express equipment loan is indeed one of the best options.

Unsecured loans: As the name suggests, the unsecured loans are those loans where no security is provided against the loans. Generally, the quantum of loan that is given by the American Express under the unsecured loans is not very big as it is in the case of secured loans. One of the striking features of the American Express unsecured loan is that it is approved very quickly as compared to the secured loans, which need the whole documentation process. This loan is available for any reason related to the business. Basically, the American Express unsecured loan has been designed for those businesspersons that needs finance for the purchasing inventory and materials etc. This type of loan can also be used for the purchase of machinery or vehicle etc. It is to be understood here that the unsecured loans are provided at a higher rate of interest as compared to the secured loans.

Real estate loans: Real estate loans are also provided by the American Express. These loans are provided for the financing of new or the existing commercial real estate. So, this type of loan is basically for acquiring the real estate assets. The maximum time period allowed in this type of loan is 20 years. There is also minimum quantum of loan that has to be availed. Also, it gives a chance to the borrower to get the amount in one lump sum or in installments depending upon the nature and the purpose of the loan. Thus, any business house can easily acquire any commercial real estate by means of this type of loan.

Vehicle loan: The American Express also provide vehicle loan to the customers. This loan is provided for the purchase of many types of vehicles that are used in the business. For example, a person can easily get a vehicle loan from the American Express for the purchase of car etc that is used in the business. It is of course a type of term loan. As far as the rate of interest is considered, it is available at fixed as well as floating rate of interest. The maximum repayment period allowed is generally 6 years. A person can easily get the 100% finance, i.e. it is possible to get the amount of loan that is equal to the purchase price of the vehicle.

Apart from the various types of business finance that is available from American Express, there are also other conventional type of loans like the cash credit facility, term loans etc. The cash credit is available by hypothecating the inventory where as in the case of term loans, the asset purchased out of the finance obtained from the American Express is mortgaged so that in case of non-repayment, the amount disbursed can be realized by selling the asset.

So, it can be said that there are many types of loans that can be availed for the business purpose from the American Express. Also, the loan disbursal program of American Express makes it one of the most sought after institutions in the United States.