The American Express Plum card is a business card unlike any other. This charge card is designed for business owners who want flexible payment options and the ability to do business on their own terms with discounts given on your total balance when you pay early plus to option to take up to 60 days to pay your balance with absolutely no interest.

Want To Improve Cash Flow? Plum Can Help

As a business owner, you're familiar with trade terms. Buyers usually have two months from the date of invoice to pay the balance in full with an incentive to pay early, such as a discount if the invoice is paid in full in 10 days. That's how the Plum Card from American Express OPEN works.

You get two options:

  1. Pay your balance in full in 10 days and get a 1.5% discount off the total amount.

  2. Pay as little as 10% of your balance and get 60 days to pay off the balance in full, with absolutely no interest.

You choose your monthly payment term based on your cash flow needs. If you choose the early payment discount, you can use this money to reinvest in your business and your discount will appear as a credit on the next statement. If you need cash on hand, choose the extra days to pay to avoid interest for up to 60 days.

This Solves a Huge Problem For Small Business Owners

When you operate your own business, you know how frustrating it is when customers pay late, which makes it hard for you to then pay your own bills on time. This cash flow issue is one of the biggest problems business owners face, especially with fledgling businesses, and that's the beauty of the Plum card.

These flexible payment terms mean you have the option to pay off your bill over 60 days instead of the usual 21-25 to completely avoid paying interest and leave you with cash on hand to pay for your expenses.

How the Plum Card Saves You Money

With any other credit card, if your balance isn't paid in full by your due date, you'll be charged interest going back to the date of your purchases. Typical charge cards also require your balance be paid in full every month so getting up to 60 days to pay off your balance can easily save you hundreds or thousands every year in interest alone.

If you have the ability to pay your balance in full within 10 days of your billing statement, you can potentially save even more. You'll be earning 1.5% cash back on everything you spent that month, which adds up quickly.

You Also Get American Express Benefits

While the payment options steal the show with the Plum card, don't forget it's also packed with plenty of great American Express benefits. Here's a quick look at the other advantages to having the Plum card in your wallet:

  • Extended Warranty
  • Purchase Protection
  • Fraud Protection guarantee
  • Dedicated dispute resolution
  • Open Savings program to receive discounts at participating companies like 5% off Office Depot and Marriott purchases and up to 10% off Hertz car rentals
  • Car rental loss and damage insurance
  • Travel accident insurance
  • Dedicated 24/7 customer service line
  • Emergency card replacement
  • Identity theft assistance
  • Year-end summaries and detailed statements

There Are a Few Downsides..

The Plum card is unlike any other card on the market, although it does come with a high annual fee. The annual fee for the card is $250, although it's waived for the first year.

Still, the ability to defer payments or choose to be rewarded for paying early in full can be a real lifesaver for any business and well worth the money. The 1.5% discount also means the card can pay for itself if you spend about $16,500 every year.

Here’s The Bottom Line

Whether you own a fledgling business that suffers with the typical cash flow issues common with all start-ups or you have an established business with a great deal of expenses, the Plum card from American Express OPEN is truly a game changer.

This charge card gives you the flexibility you need to help your business grow and you'll probably be approved if you have good credit history, positive cash flow and your business is at least two years old.