Working Capital
Editorial Team
At Working Capital, we believe access to funding should be simple, transparent, and designed around your business not the other way around. We’re committed to helping entrepreneurs make smart financial decisions with tools, guidance, and lending partners they can trust.
American Express and Square have each developed financing products to help businesses address short-term funding needs, but they approach business lending from different perspectives. American Express has expanded its business banking offerings through the Business Blueprint platform, while Square has built financing around its payment ecosystem for eligible sellers.
Both providers offer access to working capital for small businesses, but the way each platform operates is shaped by its underlying business model. These distinctions influence not only how capital is accessed, but also how it fits into day-to-day business operations.
Amex offers a business line of credit to cover short-term working capital needs. Business credit cards and business checking account offered separately.1
The American Express Business Line of Credit is available through the Amex Business Blueprint platform and provides revolving access to between $2,000 and $250,000 in funding. Approved businesses can borrow as little as $1,000 per draw or larger amounts up to the available credit limit. As outstanding balances are repaid, that portion of the credit line becomes available for future use.1
Each advance functions as its own financing agreement, allowing borrowers to select repayment terms individually. Typical installment terms include six, 12, 18, or 24 months, with shorter one-time repayment options. American Express displays the fixed monthly payment and total borrowing cost upfront.1
Rather than charging interest, this business line of credit lender applies a fixed fee to each draw. The fee varies based on the repayment term and other underwriting factors. There are no prepayment penalties, and paying off a draw early eliminates any remaining fees. The credit line also carries no annual fee, maintenance fee, or inactivity fee.1
Eligibility generally requires at least one year in business, an average monthly revenue of $3,000 or more, and a credit score of about 660 or higher. The credit line is unsecured, so business collateral is not required, although applicants are typically asked to provide a personal guarantee.1
Applications are completed online, with approval decisions often issued within minutes. Draw request funding is generally received within one to three business days, or by the next business day if deposited into an American Express Business Checking account.1
Square’s business financing options do not include a revolving credit product. Eligible Square sellers may receive offers for Square Loans, which provide a fixed lump-sum advance that is repaid automatically as a percentage of daily card transactions. Square also offers a business credit card, but it does not provide the same borrowing structure as a revolving business line of credit.
Unlike a business line of credit, Square does not offer an account that businesses can draw from repeatedly as funding needs arise. Companies that need ongoing access to working capital through a revolving line of credit typically must obtain that product from another financial institution.
The Amex Business Line of Credit is the primary tool Amex provides for short-term financing needs. Businesses can use the line to draw funds for short-term expenses and repay on a fixed monthly schedule.
For very short-term business working capital loans, Amex offers six-month repayment terms on withdrawals from the line of credit. However, there is no option where repayments flex with daily sales volume. Payments are due on a fixed schedule regardless of whether sales are strong or slow.
Square offers short-term small business loans with revenue-based repayment to eligible sellers already using Square to process payments. Rather than accepting applications from the general public, Square reviews merchant accounts using internal business data, including sales volume, payment processing activity, and account performance.6
Businesses that qualify receive financing offers directly within the Square Dashboard, with no separate application process required. Available loan amounts range from $100 to $350,000, depending on the merchant’s processing history and overall sales activity.6
Each financing offer includes a fixed fee rather than an interest rate, allowing businesses to see the total cost of borrowing before accepting funds. The fee is established when the offer is issued and does not decrease if the loan is repaid ahead of schedule.6
Repayment is tied directly to sales processed through Square. Square collects repayment by taking an agreed percentage of daily sales until the outstanding balance is cleared. As sales fluctuate, repayment amounts rise or fall accordingly, creating a revenue-based repayment structure rather than a traditional installment loan.6
Although payment amounts vary from day to day, a minimum repayment equal to 1/18 of the starting loan amount is required every 60 days, with the remaining balance generally due within 18 months.6
Square determines eligibility using its own underwriting criteria rather than a traditional lending application. The company does not require a personal credit check or business collateral when extending loan offers, and financing is available only by invitation.6 Loan terms, borrowing amounts, and fees are predetermined by Square, leaving merchants with the option to accept or decline the offer rather than negotiate individual terms.
Unlike the Business Line of Credit, American Express business cards are intended for everyday purchasing rather than providing access to a reusable pool of working capital.
American Express maintains a large business card portfolio, offering business credit cards for small businesses tailored to a variety of spending habits, financing preferences, and rewards goals. Businesses can choose from cash back cards, Membership Rewards® cards, premium travel cards, and business charge cards, with options with and without annual fees.3
For businesses with significant travel expenses, cards such as the Business Platinum® Card earn provide benefits that may include airport lounge access, airline fee credits, travel insurance, and other travel-related perks. Owners can also earn Membership Rewards points on travel spending.3
Businesses seeking a simpler rewards structure may prefer a card like the Blue Business Cash™ Card that offers cash back. Those looking to earn Membership Rewards points without paying an annual fee can consider products such as the Blue Business® Plus Credit Card. Some business credit cards may periodically include introductory APR offers for eligible new cardmembers.3
American Express also offers business charge cards, including the Business Gold Card and Business Platinum Card. Unlike traditional credit cards, these products do not have a preset spending limit. Although payment in full is generally expected each billing cycle, eligible purchases may qualify for the Pay Over Time feature.3
Many American Express business cards include additional account benefits, such as purchase protection, extended warranty coverage, travel protections, employee cards, spending controls, and expense management tools. Businesses can manage accounts, monitor transactions, and review employee card activity through their American Express online account.3
Note that premium cards can also carry substantially higher annual fees (currently around $695 for the Business Platinum Card), making them most valuable for businesses that regularly use the available travel benefits and statement credits.3
The Square Credit Card is available exclusively to eligible Square sellers and is designed to work within the company’s broader payments and banking platform. Eligibility is invitation-only and is based primarily on a business’s Square processing history and transaction activity. The card operates on the American Express network, allowing purchases anywhere American Express is accepted. The available credit limit is determined largely by the business’s payment processing volume and may increase as sales grow.8
Square keeps the card’s pricing straightforward by eliminating annual fees, late fees, and foreign transaction fees. Unlike many business rewards cards that offer category-based earnings or travel benefits, the Square Credit Card provides unlimited 1% rewards on eligible purchases. Rewards are automatically applied as credits toward Square payment processing fees rather than as cash back or travel points.8 Thus, the card is more valuable for businesses that regularly accept payments through Square.
The card is fully integrated with Square’s financial ecosystem, allowing business owners to monitor purchases, manage payments, review sales activity, and access other Square Banking tools from a single dashboard. Businesses can also make payments directly through the Square Dashboard. Applying for the card does not affect the applicant’s credit score. If the required minimum payment is missed, however, Square may collect the amount due by automatically deducting a percentage of the business’s daily card sales processed through the Square platform.8
Because its rewards and account features are closely tied to Square’s payment processing services, the card is generally best suited for businesses that already rely on Square as their primary payment platform.
American Express business checking is an FDIC-insured business deposit account offered through the Amex Business Blueprint platform. It is structured as a fee-free checking account with no monthly maintenance fees and no minimum balance requirements.5
The account is designed to integrate with other American Express business financial products, allowing users to manage deposits, transfers, bill payments, and cash flow within the same ecosystem as Amex business cards and lending products.5
Eligible debit card purchases may also earn Membership Rewards® points, depending on the account structure and qualifying activity.5 The account is positioned as part of a broader financial platform that combines banking, payments, and financing tools under American Express Business Blueprint.
For businesses processing payments through Square, funds from card transactions can flow into the checking account and become available for use on a rapid basis, depending on eligibility. A linked debit card allows spending directly from the account balance.7
The product is positioned as part of Square’s operational toolkit, which centers on payment processing, sales management, and day-to-day cash flow tied to merchant activity.7
Financing decisions often come down to more than numbers on a page. The way funding is accessed, how repayment fits into day-to-day cash flow, and how each business’s working capital loan connects with the rest of a business’s financial activity can all shape whether a solution feels practical in real use. Even small differences in eligibility requirements or repayment timing can influence how smoothly a financing option fits into ongoing operations.
American Express and Square take different approaches to addressing short-term capital needs for small businesses, and those differences show up in how each system operates. One is structured around a broader financial platform that combines banking, credit cards, and lending tools for qualified businesses, while the other is closely tied to payment activity within an existing merchant account and designed to align repayment with sales volume. Each approach reflects a different way of thinking about access to capital and how it should function alongside day-to-day business activity.
For many business owners, the goal is to find which structure fits more naturally into how the business already operates and manages money. Over time, that alignment can make just as big a difference as the size of the funding itself.
1https://www.americanexpress.com/en-us/business/blueprint/business-line-of-credit/
2https://www.americanexpress.com/en-us/business/blueprint/help-center/business-line-of-credit/fees
3https://www.americanexpress.com/us/credit-cards/business/business-credit-cards/?inav=us_menu_cards_business_credit_cards_view_all_business_credit_cards
4https://www.americanexpress.com/en-us/business/blueprint/
5https://www.americanexpress.com/en-us/business/checking/
6https://squareup.com/us/en/banking/loans
7https://squareup.com/us/en/banking/checking
8https://squareup.com/us/en/banking/credit-card
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