American Express has joined forces with ODX, a provider of origination services in the business banking market, to launch a range of small business loans in Australia.

Loans will be available to Amex business card members. It is offering unsecured loans from A$5000 to $250,000, with terms from six to 24 months. Loans are priced for risk and, at launch, rates range from 10.95 per cent to 23.95 per cent.

ODX is a subsidiary of the US online lender OnDeck. It provides digital origination, credit assessment, and account opening as an outsourced service.

American Express Australia vice president of global commercial services, Martin Seward, said the partnership with ODX should ensure a fast, streamlined process. The fact the Amex is only offering loans to existing card members means it already has plenty of data on prospective borrowers.

The timing of the move appears odd, given the low growth in business credit. According to the latest Reserve Bank lending data, business loan balances grew by just 1 per cent in the 12 months to December – the lowest rate of growth since the GFC.

In its recent Statement on Monetary Policy, the RBA said subdued business credit conditions were the result of equal parts caution by companies and tighter supply.

However, Amex is betting on a recovery in demand. A survey of 1000 SMEs conducted for Amex by Lonergan Research found 53 per cent of businesses are optimistic about the year ahead, while around 40 per cent will need access to additional capital in the form of a loan this year.

One in four said this was a direct result of JobKeeper ending.

The research also showed that about half the SMEs that sought funds from other lenders during the pandemic faced challenges, such as being asked to use personal asset as security and overly complex application processes.

Seward said: “Because we know these businesses through their business card membership, it won’t be as complex a journey.”