Friday, November 16, 2007

The Plum Card from American Express

I hadn't heard about it until today, but the image of the new Plum Card from American Express immediately caught my attention. Once I saw the image and clicked for more information, I was even more impressed.

According to American Express, the new card has the following unique features:

"Pay early, get up to a 2% discountPay your balance in full within 10 days of your statement closing date and get a 2% discount when your month's total spending is above $5,000 and 1% when it's $5,000 or below. The discount is applied to all new eligible charges in that month, and will appear as a credit on your following month's statement.Example: Charge $10,000 monthly and regularly pay your bills in full within 10 days, and your monthly savings will be $200 (Your yearly savings will be $2,400).

Pay 10%, defer payment up to 2 months, interest–freeTake up to two months from the closing date on your monthly statement to pay your new balance in full – all without interest or finance charges. Just make an initial payment of at least 10% by the Please Pay By date on your billing statement and you can extend payment on the rest until the next month's Please Pay By date.Example: If the new balance on your statement is $5,000, you can pay $500 by the Please Pay By Date and the rest by the Please Pay By Date on your next month's billing statement.

Set Your Own Billing CycleSelect when your monthly billing cycle closes — at the beginning, middle, or end of the month."

You can get more information about the card here (I'm not selling it, it simply looks like a potentially helpful program).

I'm always excited to see the major companies competing for the opportunity to finance small business activities. Such is good for the economy and business in general.

Virtually everything I have seen so far has been "marketing" in its approach, so I cannot yet vouch for the card. But I will keep my eyes open and report back my findings in the future. Meanwhile, I would love the comments of others on the viability of the program when it comes to their business.

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Anonymous Anonymous said...

The card is helpful for wholesalers. You can purchase goods from your vendor using the plum card (so you have basically 60 days to pay for the purchase) and turn around and sell the goods to your customers allowing them 30 days to pay you back or NET30. You will receive your money from your customers well in advance of the 60 days that you need to pay off the initial purchase of the goods. This really helps with cash flow especially in the wholesale business where we are always dealing with accounts receivables.

12:42 PM  

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