Writing a business plan for funding, be it for a loan or an investor, can seem like one of the more daunting tasks for an entrepreneur.
Just as you would want to know the specifics of a mutual fund or stock portfolio before you put down money, your investors and creditors want to know if funding your business is a sound idea. However, as evidenced by the revenue growth in the chart below, transaction volumes are unlikely to grow rapidly enough to offset the loss in revenue overwhich stem from the fee reduction.
Additionally, as a larger number of cardholders use their cards for making payments, there should be a proportional increase in total card balances over coming years.
This is because the industry of financial planning is so populated it is quite hard to make a decision for choosing a service provider. Of course, financing pricey items comes with its own problems. Additionally, as American Express will likely increase spending to attract more merchants into its fold, elevated marketing costs may also drag down margins in the short term.
The more convincing your plan, the less risky your business appears. Our conclusion is based on our interactive model for American Expresswhich captures the changes in key operating metrics as well as expected share price for the company over coming years.
Your Current and Future Loan Requirements This section should include your current funding request, as well as any anticipated funding requirement in the foreseeable future. American Express is the second-largest credit-card brand, behind Visa Vin terms of purchase volume.
But the company has done well to grow card balances over by refocusing on the affluent cardholder segment.