The Plum Card® from American Express is a unique and powerful business credit card designed for business owners who need flexibility with their finances. Known for offering exceptional cash flow management features and a range of useful benefits, this card is ideal for those who need to pay off large purchases over time or take advantage of extended payment terms. In this comprehensive guide, we will delve into the key features of The Plum Card®, its benefits, how to apply, and why it might be the right choice for your business.
1. Overview of The Plum Card®
The Plum Card® is a charge card rather than a typical credit card. This distinction means that users are generally expected to pay off their balance in full each month. However, the Plum Card offers unique flexibility in how and when you pay off your balance, giving business owners the ability to manage their cash flow with ease.
The card comes with a no annual fee for the first year and is specifically designed to benefit small business owners who want to extend their payment terms. With The Plum Card®, you can enjoy the flexibility of paying off your balance over 60 days with a 1.5% early pay discount when you pay within 10 days of your statement date. This makes the Plum Card an excellent choice for managing larger business expenses or taking advantage of early payment discounts from vendors.
2. Key Benefits of The Plum Card®
2.1 Flexibility in Payment
One of the standout features of The Plum Card® is its unparalleled flexibility in payment. The card offers up to 60 days to pay off purchases with no interest, and if you make early payments, you can receive a 1.5% discount. Here’s how it works:
- Early Pay Discount: When you pay off your balance within 10 days of the statement date, you will receive a 1.5% discount on the balance. This is a valuable tool for businesses that want to save on expenses and improve cash flow.
- No Interest Charges: For purchases made with the Plum Card, you can take advantage of up to 60 days to pay your bill without incurring interest charges, giving you ample time to manage your business’s cash flow.
This flexibility is ideal for businesses that may need extra time to manage large or unexpected expenses.
2.2 1.5% Early Pay Discount
As mentioned, The Plum Card® offers a 1.5% early payment discount when you pay your statement balance within 10 days. For businesses that have the cash flow to pay their bills promptly, this feature can lead to significant savings over time. Whether you’re purchasing inventory, equipment, or other business-related services, the early pay discount can reduce your overall costs.
For example, if you owe $10,000 on your Plum Card and pay off the balance within 10 days, you could save $150. This can be especially helpful in managing operational costs or reinvesting savings into your business.
2.3 No Pre-Set Spending Limit
Unlike traditional credit cards, The Plum Card® does not have a pre-set spending limit. Instead, your spending capacity is determined by several factors, including your spending history, payment patterns, and business profile. This gives you more flexibility when it comes to making large business purchases or covering unexpected expenses.
While the card doesn’t have a fixed spending limit, it’s important to note that charges must be paid off in full by the payment due date, and any unpaid balances after the 60-day grace period will incur interest charges. Nonetheless, the lack of a set spending limit can be a huge benefit for growing businesses that need to make large purchases on the fly.
2.4 Access to American Express Business Resources
The Plum Card® also offers access to a wide range of tools and resources to help businesses manage their spending and improve financial planning. These include:
- Expense Management Tools: Track your business’s spending in real time with detailed reporting and analytics. You can categorize expenses, assign them to specific projects, and access insights to help you make informed financial decisions.
- Employee Cards: You can provide employee cards with set spending limits, helping you to track and manage their expenses more effectively.
- Fraud Protection: American Express provides comprehensive fraud protection, so you can feel secure knowing your business’s transactions are protected.
Additionally, cardholders can access the American Express Open Savings Program, which provides discounts and special offers at select vendors, which can help businesses save even more on everyday expenses.
2.5 Travel and Business Perks
While The Plum Card® is mainly focused on cash flow management and savings, it also comes with a variety of travel-related benefits for business owners. These include:
- Travel Accident Insurance: This provides coverage in the event of an accident while traveling for business.
- Car Rental Loss and Damage Insurance: This coverage helps protect you from financial loss due to rental car damage when you use your Plum Card for payment.
- No Foreign Transaction Fees: The Plum Card® comes with no foreign transaction fees, making it ideal for businesses that make purchases or travel internationally.
These travel and business protections help ensure that your business is covered no matter where your work takes you.
3. Annual Fees and Costs
The Plum Card® has a $0 introductory annual fee for the first year. After the first year, the annual fee is $250. While this fee may seem high, the benefits offered, including the early payment discount and flexibility in managing cash flow, can help offset the cost, especially if you use the card for larger expenses or take advantage of the early payment discounts.
Additionally, there are no foreign transaction fees, which is beneficial for businesses with international transactions.
4. How to Apply for The Plum Card®
Applying for The Plum Card® is a straightforward process, and it can be done online. Here’s how to apply:
Step 1: Check Eligibility
Before applying, ensure that your business meets the basic eligibility criteria. Typically, American Express requires applicants to:
- Have a good to excellent credit score (typically 670 or higher).
- Be a business owner with a valid business license and tax identification number.
- Provide information about your business’s annual revenue and years in business.
Step 2: Visit the Application Page
To begin the application, visit the official American Express website. Find the Plum Card® section and review all the details regarding the card’s features and benefits.
Step 3: Fill Out the Application
Once you’re ready, click the “Apply Now” button. You will be asked to provide information about your business, including:
- Your business name and legal structure.
- Your tax identification number.
- Your annual revenue and business expenses.
- Your personal and business contact information.
Step 4: Submit Your Application
Review your application for accuracy and submit it. American Express will then review your application, which typically takes just a few minutes. In some cases, additional documentation may be requested to verify your business’s financial information.
Step 5: Wait for Approval
If approved, you’ll receive your Plum Card® within a few days. Once you activate it, you can begin using it to manage your business expenses and take advantage of the card’s many benefits.
5. Conclusion
The Plum Card® from American Express is an excellent choice for business owners who need flexibility and want to take advantage of early payment discounts to improve cash flow. Its key features—such as the 1.5% early pay discount, no pre-set spending limit, and no interest for up to 60 days—make it an ideal tool for managing large expenses and maximizing savings. With no foreign transaction fees and access to valuable business resources, the Plum Card is designed to help you run your business more efficiently.
The application process is simple, and if you meet the eligibility requirements, you can quickly start enjoying the benefits of this versatile business card. Whether you’re a small business owner or managing a growing enterprise, The Plum Card® can provide the financial flexibility and support you need.
