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3 Min Read | Published: May 9, 2024 | Updated: November 5, 2024
How to pay a payee with your American Express® Business Line of Credit
American Express customers can pay a U.S. vendor directly with loan funds drawn from their Business Line of Credit.
Paying a vendor using your Business Line of Credit can help you save time and build stronger relationships. For example:
- If your payee doesn’t accept credit cards, then you can quickly pay that payee with your Business Line of Credit
- If you don’t have enough cash to cover an expensive bill, then your Business Line of Credit has your back.
The following guide will take you through making direct payments from your Business Line of Credit to a vendor.
Do I have to pay for this feature?
No, American Express doesn’t charge a fee to send a payment to a vendor using your line of credit. However, you will pay loan fees for the loan you draw to make the payment. You pay a loan fee only on the amount you use, during the months you have an outstanding balance.
Will a vendor be charged to receive a payment?
No, a vendor won’t be charged a fee by American Express to receive a payment from you using your Business Line of Credit.
Start the pay a vendor process from the Business Line of Credit home screen.
- Simply click the “Send a payment” button.
- You’ll either search for your payees in our database or add a payee (U.S. based vendor/supplier) to start making payments and transfers today.
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If you don’t have any existing eligible payees, then you’ll see the screen that explains how to add a payee and make a payment with your available loan funds.
Step 1: Click the “Add payee” button
NOTE: If you have existing eligible payees, you’ll see a list of your payees and be able to add a new payee by clicking the “Add payee” button.
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Step 2: Provide your payee’s name and bank information
All fields required, except nickname. Click “Continue” button to fill in the rest of payee information.
NOTE: You’ll need to verify your identity. When prompted, enter the 6-digit code sent to the phone number associated with your American Express account. Click “Continue” button.
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Step 3: Receive decision
If your payee is eligible, then you’ll receive confirmation that your payee was added.
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NOTE: You can only pay payees that are eligible. We may decline a payee if we determine the payee isn’t eligible to receive payments from us (a) for reasons we determine acting in our sole discretion or (b) for any other reason (including reasons beyond our control).
Step 1: Select a payee
If you have existing eligible payees, you’ll see a list of your payees and be able to add a new payee by clicking "Add payee" (see option 1 outlined above for instructions).
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Step 2: Enter the loan details
- Enter the amount of the payment.
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- Choose a loan term from options available to you.
- Select your loan term length from the options shown – that is, the number of months you’ll take to pay off your loan and applicable fees. Each draw on the line of credit is a separate 6, 12, 18, or 24 month installment loan, depending on your eligibility for different loan term lengths.
- Not all customers are eligible for all loan term lengths.
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Step 3: Choose loan purpose
You’re almost there. Tell us how you plan to use the funds. Click “Continue” button.
NOTE: If your new loan is greater than $10,000, you’ll be taken to a screen with a dropdown where you’ll be asked how you plan to use the funds. Please select the most fitting answer.
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Step 4: Select your autopay account
We require customers to set up their autopay account, from which we will automatically deduct the monthly payments due in accordance with the loan agreement.
NOTE: If you haven’t yet selected an autopay account, you will be taken to a screen requiring you to do so before continuing.
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Step 5: Review your details
This is your chance to double-check the details. Are the loan amount, payee, and destination all accurate? If so, click the “Continue to loan agreement” button.
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Step 6: Sign loan agreement
You’ve reached the last step before funds are sent. Review the loan agreement and sign. That’s it – your payee should receive funds within 1-3 business days.
NOTE: Payments may be delayed for several reasons and the payee’s bank may have their own policy regarding how quickly to post a payment.
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Step 1: Manage payees
Under “Quick links” select “Manage payees” to view all payees including ineligible payees.
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There, you’re able to add new payees and edit payee information.
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What are some examples of payee payments?
Here are some examples of how you could use your Business Line of Credit to pay an eligible business payee:
- To pay a supplier for raw materials
- To pay a vendor for goods or services
- Large business-related bill payments
How paying suppliers late can impact your business.
When a business makes a late payment – whether due to cash flow gaps, invoice oversights, or short-staffed operations – the ramifications can be detrimental, possibly including:
- Expensive late fee
- Damage to supplier relationships
- Loss of bargaining power
- Stifle growth and endanger business survival
STILL NEED HELP?
Reach out to us for further guidance.
Deposit accounts offered by American Express National Bank. Member FDIC.
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American Express Business Blueprint™ is the small business digital experience that allows a customer to view on one digital dashboard summary account information for the following American Express small business products: American Express® Business Cards, American Express® Business Line of Credit, and American Express® Business Checking. The customer can also choose to link their third-party issued business bank accounts and business credit cards to Business Blueprint. Not all third party accounts or cards can be connected to Business Blueprint. Business Blueprint allows the customer to view data insights and track their business cash flow and expenses by viewing reports that American Express prepares using the customer’s linked account information. Business Blueprint provides a 30-day bank account balance projection, using the daily balances from the customer’s linked bank accounts from the last 90 days. To be used in the account balance projection, the customer’s bank account must have at least 90 days of data available. While the cash flow management service from Business Blueprint is currently free, each of the business products from American Express that are visible in Business Blueprint has its own fees, eligibility criteria, application process and approval requirements. The Business Blueprint service (including any data insights provided to the customer) does not constitute legal, tax, financial or accounting advice, and is not a substitute for obtaining competent personalized advice from a licensed professional. You should seek professional advice before making any decision that could affect the financial health of your business. American Express makes no representations as to the accuracy, completeness or timeliness of the reports, projections, data or account information that are available to the customer from Business Blueprint.
American Express® Business Line of Credit
American Express® Business Line of Credit offers access to a commercial line of credit ranging from $2,000 to $250,000; however, you may be eligible for a larger line of credit based on our evaluation of your business. Each draw on the line of credit will result in either a separate installment loan or a single repayment loan. All loans are subject to credit approval and are secured by business assets. Every loan requires a personal guarantee. For single repayment loans, we charge a total loan fee that ranges from 0.95%-1.80% of the amount you borrow for 1-month loans, 1.90%-3.75% for 2-month loans, and 2.85%-6.05% for 3-month loans. Single repayment loans incur a loan fee at origination and the principal and total loan fee are due and payable at loan maturity. There are no required monthly repayments for a single repayment loan. Repaying a single repayment loan early will not reduce the loan fee we charge you. For installment loans, we charge a total loan fee that ranges from 3-9% of the amount you borrow for 6-month loans, 6-18% for 12-month loans, 9-27% for 18-month loans, and 12-18% for 24-month loans. Installment loans incur a portion of the total loan fee for each month you have an outstanding balance. If you repay the total of the principal of an installment loan early, you will not be required to pay loan fees that have not posted for subsequent months. For each loan that you take, you will see the applicable loan fee before you take the loan. Once you take the loan, the loan fees that apply to that loan do not change. We reserve the right to change the loan fees that we offer you for new loans at any time. American Express reserves the right to offer promotions to reduce or waive loan fees from time to time. Not all customers will be eligible for the lowest loan fee. Not all loan term lengths are available to all customers. Eligibility is based on creditworthiness and other factors. Not all industries are eligible for American Express® Business Line of Credit. Pricing and line of credit decisions are based on the overall financial profile of you and your business, including history with American Express and other financial institutions, credit history, and other factors. Lines of credit are subject to periodic review and may change or be suspended, accompanied with or without an account closure. Late fees may be assessed. Loans are issued by American Express National Bank.
Single repayment loans may become available to eligible existing and new Business Line of Credit customers at different times.
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Kabbage Payments, LLC is a registered Payment Service Provider/Payment Facilitator sponsored by Fifth Third Bank, N.A., Cincinnati, OH.