American Express has taken a step backwards in it’s small business focus.
In recent years, American Express OPEN has significantly expanded the range of card products that [they] provide to small business owners, and those products are at the core of how [they] meet the purchasing needs of [their] customers. As a result of our increasing focus on this core set of products, American Express OPEN has decided to discontinue the Business Line of Credit and Business Capital Line program[s], effective January 15, 2009
Source: AMEX
This is bad news for small business owners in an already difficult time. It could be the death blow for some small businesses who’s only working capital left was the AMEX LOC. It’s a shame that AMEX needs to focus on revenue models (i.e. transaction fees charged to merchants at the point-of-purchase) that are best for them and not what’s best for the small business owners.
