The Plum Card® is a business credit card offered by American Express, designed for small business owners who want flexibility and rewards. This card is particularly attractive to businesses that need extra time to pay their bills and those that are looking for a way to optimize their cash flow. With benefits such as a generous 1.5% cashback on all purchases and the ability to carry a balance with no interest for up to 60 days, the Plum Card® offers valuable financial tools for entrepreneurs and small business owners.
Key Features of The Plum Card®
The Plum Card® offers a host of benefits that cater to businesses looking to manage their expenses more effectively. Below are some of the most important features of the card:
- Flexible Payment Terms: One of the standout features of the Plum Card® is its flexible payment options. Cardholders can take advantage of a 60-day payment period without incurring any interest charges, provided they make the minimum payment. This flexibility is ideal for businesses that might experience fluctuating cash flow and need a bit more time to pay their bills without the pressure of accumulating interest.
- 1.5% Cashback on All Purchases: The Plum Card® rewards businesses with 1.5% cashback on all purchases, with no limits on how much you can earn. This makes it a great option for businesses that make a variety of purchases, as the rewards are earned regardless of the type of expense. Cashback can be applied as a statement credit, helping businesses reduce their monthly bills or save money on future purchases.
- No Annual Fee for the First Year: When you first get the Plum Card®, you won’t have to pay an annual fee for the first year. After the first year, there is a fee of $250, which is reasonable given the card’s benefits and rewards structure. For businesses that can take full advantage of the card’s features, the fee may be outweighed by the cashback and financial flexibility it provides.
- Advanced Reporting and Expense Management Tools: The Plum Card® comes with a suite of tools to help business owners manage their finances more effectively. American Express provides detailed spending reports, which can be integrated with accounting software, making it easier to track and categorize expenses. This is especially useful for businesses that need to manage multiple purchases and keep track of expenses for tax purposes.
- Purchase Protection: Purchases made with the Plum Card® are protected against damage or theft for up to 90 days after purchase. This protection can be invaluable for businesses that need to make substantial investments in equipment or inventory and want to ensure they are safeguarded against potential risks.
- Access to American Express Offers: Cardholders can take advantage of special offers and discounts from American Express’s vast network of partner merchants. These offers can range from discounts on office supplies to promotional offers on travel bookings, giving businesses opportunities to save on both everyday and large-scale purchases.
- No Foreign Transaction Fees: The Plum Card® does not charge foreign transaction fees, which is particularly beneficial for businesses that travel internationally or have suppliers overseas. This can help reduce the costs of international purchases and make it easier to manage cross-border transactions.
- Business-Specific Customer Support: American Express offers dedicated customer support for business cardholders, including 24/7 access to live representatives. This ensures that business owners can get help whenever they need it, whether it’s for troubleshooting issues, reporting lost or stolen cards, or managing their account.
- Build Your Business Credit: Using the Plum Card® responsibly can help build your business’s credit history, which can be vital for securing financing or expanding your business in the future. American Express reports to business credit bureaus, allowing your timely payments to improve your credit score over time.
How to Apply for the Plum Card®
Applying for The Plum Card® is a straightforward process, but there are some key steps and criteria to be aware of before you begin the application:
- Eligibility Requirements: To apply for The Plum Card®, your business needs to meet certain requirements. These include:
- You must have a U.S.-based business with a valid business address.
- Your business should be a legal entity (LLC, Corporation, Sole Proprietorship, etc.).
- A strong credit history for both the business and the individual applying may be necessary.
- Application Process: You can apply for The Plum Card® online through the American Express website. The application will require you to provide:
- Basic information about your business (business name, legal structure, and industry).
- Financial details such as your annual business revenue, business expenses, and tax identification number (TIN).
- Personal information such as your name, address, and social security number (SSN) to assess your creditworthiness.
- Approval and Credit Limit: Once you submit your application, American Express will review your business’s financial situation and credit history. The approval process can take anywhere from a few minutes to a few days. The credit limit you receive will depend on your business’s financial profile and creditworthiness. Businesses with strong credit may be approved for higher credit limits, allowing for more substantial purchasing power.
- Receiving the Card: After approval, you will receive your Plum Card® within 7-10 business days. You can then activate it and start using it for your business purchases.
Important Considerations
While the Plum Card® offers several benefits, there are some important considerations to keep in mind:
- Annual Fee: As mentioned earlier, the Plum Card® charges a $250 annual fee after the first year. Businesses should carefully evaluate whether the rewards and benefits of the card justify this fee.
- Late Payments: Although the card offers 60-day payment flexibility, it’s important to note that late payments can still incur fees and may impact your credit score. To avoid this, businesses should make at least the minimum payment on time to maintain the card’s benefits and avoid penalties.
- Interest Rates: The Plum Card® offers no interest for the first 60 days, but after that period, the interest rate on carried balances can be quite high. It’s essential to pay off the balance within this period to avoid paying interest.
- Eligibility for Rewards: To qualify for the cashback rewards, businesses must ensure they use the card for eligible purchases. Some transactions, like cash advances or balance transfers, may not be eligible for cashback rewards.
Conclusion
The Plum Card® from American Express is an excellent tool for business owners seeking financial flexibility, rewards, and robust expense management tools. With its generous cashback program, extended payment terms, and useful business-specific features, it can be a valuable addition to a company’s financial toolkit. However, it’s essential for businesses to understand the fees and interest rates associated with the card and evaluate whether its features align with their spending habits and financial needs.
If you believe The Plum Card® aligns with your business needs, applying for the card is a simple process. By providing the necessary business and personal information and meeting eligibility requirements, you can start taking advantage of the card’s benefits right away.