American Express

Definition

American Express, often abbreviated as Amex, is a multinational financial services corporation primarily known for its credit card, charge card, and traveler's cheque businesses. It plays a significant role in providing trade credit and facilitating cash management for businesses and individuals.

5 Must Know Facts For Your Next Test

1. American Express offers corporate cards that help businesses manage expenses and improve cash flow.
2. Amex provides various working capital solutions including business loans and lines of credit.
3. The company’s charge cards require full payment each month, which can impact cash management strategies.
4. American Express's commercial financing options can support liquidity during periods of fluctuating cash flow.
5. Amex Business Platinum Card offers benefits such as extended payment terms that assist with managing working capital.

Review Questions

• How does American Express support businesses in managing their working capital?
• What are the key differences between American Express charge cards and credit cards in terms of payment requirements?
• Why might a business choose an American Express corporate card to improve cash flow?

Related terms

Trade Credit: A form of credit extended by suppliers to allow businesses to buy now and pay later.

Working Capital: The difference between a company's current assets and current liabilities, essential for day-to-day operations.

Cash Flow Management: The process of monitoring, analyzing, and optimizing the net amount of cash receipts minus cash expenses.