AMEX Introduces New Credit Card for Small Business Owners

The use of your credit card for business purchases allows you to collect points for all these purchases and it makes good business sense to have one as part of the financial management of your business. American Express Canada announced the launch of the American Express Business Edge Card where you can earn three times the points on a variety of business purchases like  office supplies , electronics, gas, and food and drinks.  American Express Business Edge Cardmembers can earn up to 42,000 Bonus Points in the first year. The Card also offers a suite of business expense management tools and resources to help business owners stay on track.

The Card also offers Cardmembers the choice, convenience and flexibility to redeem points on what matters to them most, whether that’s business trips, personal travel, employee gift cards, or statement credits to offset business expenses. The points are also redeemable on Amazon.ca

“We know a one-size-fits-all approach doesn’t work for today’s small business owners,” said Paul Roman, Vice President and General Manager, Global Commercial Services, American Express Canada. “Every business is unique, and this Card reflects that. With this launch, we’re backing business owners by offering them a Card that supports their evolving cash flow needs while truly rewarding them for the way they do business every day.”

American Express Business Edge Card Overview:

  • Annual fee: $99, Annual interest rate: 19.99% on purchases and 22.99% on funds advances
  • Earn 3 times the points for Card purchases on eligible business essentials including office supplies & electronics, rides & gas, and eats & drinks, and 1 times the points on all other purchases charged to the Card
  • Earn up to 42,000 Bonus Points in the first year (1,000 points per month with $3,000 monthly spend plus an additional 30,000 Welcome Bonus Points when Cardmembers charge $5,000 in purchases to their Card in the first three months)
  • American Express Invites including Front Of The Line Advance Access, Front Of The Line Reserved Tickets, Front Of The Line E-Updates, Special Offers & Experiences for all Cardmembers and Social Access for all Cardmembers
  • Comprehensive insurance coverage including Employee Misuse Card Protection, Car Rental Theft & Damage, Purchase Protection and Buyer’s Assurance Protection 
  • 24/7 Customer Service, Emergency Card Replacement and Fraud Protection Guarantee

The launch of the new card is a marketing campaign primarily targeted at entrepreneurs. The campaign focuses on small business owners and includes digital content, online video, social media activities and an influencer component. The creative features Fred VanVleet, professional basketball player and founder of FVV Shop, Taylor Frankel, co-founder of beauty products firm Nudestix, and restaurant owner Grant van Gameren, among 40 other Canadian business owners. 

“At its core, both the new card and the campaign recognize and celebrate what makes business owners unique,” said David Barnes, vice-president of advertising and communications at American Express Canada. “That’s why we chose to put a spotlight on real stories from real entrepreneurs, showcasing their unique business journeys and those who have backed them along the way.”

AMEX Small Medium Business (SMB) Report

AMEX has produced market surveys for SMBs to get a sense of their business prospects and their latest report was released in September 2019 , American Express Global SME Pulse Survey, revealed that SMBs forecasts slower revenue and profit growth this year. This survey was conducted In October and November 2018 and Oxford Economics surveyed senior executives at 3,000 SMEs ranging in size from 10 to 250 employees across 12 countries and 16 industries. (Note AMEX like s to call SMBs , SME – Small Medium Enterprise)

When asked about revenue projections, only 6 per cent of SMEs forecasted a 5.1-10 per cent growth rate in 2019, a significant decline from 2018 where 28 per cent of respondents forecasted the same rate. Similarly, SMEs are forecasting lower profit margins. Last year, 22 per cent of SMEs reported a 5.1-10 per cent net profit margin and in 2019 that number dropped to only 5 per cent.

According to the survey, 61 per cent of SMEs say their customers are demanding new or tailored products and services, and 61 per cent agree that understanding customer demands is important for revenue growth. While adapting to these evolving needs can be challenging, businesses are making it a long-term priority. In fact, 71 per cent of SMEs agree they will work hard to address the challenges associated with changing demands over the next three years.

“From declining profit margins to shifting customer demands, today’s SMEs face pressures that are no doubt putting a strain on their business,” said Paul Roman, Vice President and General Manager of Global Commercial Services, American Express Canada. “Despite these challenges, Canadian SMEs are resilient and it’s clear from our study they’re staying nimble and making strategic shifts to drive future growth.”

According to the survey, 40 per cent of SMEs agree using technologies to redesign products and services is important for revenue growth. Likewise, just under two-thirds (62 per cent) say digital technology provides them with new business opportunities. Canadian SMEs are also relying on technology to help drive efficiencies. In fact, 38 per cent of SMEs say they plan to prioritize technology to modernize processes and 35 per cent agree they plan to incorporate workplace productivity tools, both over the next three years.

Despite these lower forecasts, the majority of SMEs (78 per cent) believe their role is important to the overall health of the economy. They also remain optimistic about the state of global and local economies and are putting strategies in place to drive revenue growth, increase efficiency and boost bottom lines. Adapting to meet ever-changing customer expectations