American Express OPEN updates Plum Card for small businesses

Helping small businesses manage cash flow and free up working capital

American Express OPEN is enhancing its Plum Card in an effort to help small businesses manage cash flow and free up working capital by taking advantage of the card’s built-in trade terms (view press release). A trade term is the agreement between a company and its supplier for the timing and amount of payments; this typically incorporates extra days to pay or, less frequently, early pay discounts.

The enhanced Plum Card provides access to these two benefits: when cardmembers pay a minimum of 10% of their balance within 10 days of the statement closing date, they earn a 1.5% discount on the portion they elect to pay; and when they pay a minimum of 10% of the balance, they can also take up to 60 days from the statement closing date to pay the remaining balance without penalties or interest charges.

The initiative comes after Spring 2012 American Express OPEN Small Business Monitor released its semi-annual survey which indicated that 50% of small business owners are concerned with having cash available to pay bills.

 

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