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3 Min Read | May 9, 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 “Select payee and loan amount” 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.
![Start Pay Process](/content/dam/amex/en-us/business/blueprint/help-center/business-line-of-credit/vendor-payments/StartPayProcess.png)
For illustrative purposes only
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.
![Add Payee](/content/dam/amex/en-us/business/blueprint/help-center/business-line-of-credit/vendor-payments/AddPayee.png)
For illustrative purposes only
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.
![Provide Name](/content/dam/amex/en-us/business/blueprint/help-center/business-line-of-credit/vendor-payments/ProvideName.png)
For illustrative purposes only
Step 3: Receive decision
If your payee is eligible, then you’ll receive confirmation that your payee was added.
![Receive Decision](/content/dam/amex/en-us/business/blueprint/help-center/business-line-of-credit/vendor-payments/ReceiveDecision.png)
For illustrative purposes only
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).
![Select a Payee](/content/dam/amex/en-us/business/blueprint/help-center/business-line-of-credit/vendor-payments/SelectPayee.png)
For illustrative purposes only
Step 2: Enter the loan details
- Enter the amount of the payment.
![Enter Loan Details](/content/dam/amex/en-us/business/blueprint/help-center/business-line-of-credit/vendor-payments/EnterLoanDetails.png)
For illustrative purposes only
- 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.
![Choose Loan Option](/content/dam/amex/en-us/business/blueprint/help-center/business-line-of-credit/vendor-payments/ChooseLoanOption.png)
For illustrative purposes only
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.
![Choose Loan Purpose](/content/dam/amex/en-us/business/blueprint/help-center/business-line-of-credit/vendor-payments/ChooseLoanPurpose.png)
For illustrative purposes only
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.
![Select Loan Account](/content/dam/amex/en-us/business/blueprint/help-center/business-line-of-credit/vendor-payments/SelectLoanAccount.png)
For illustrative purposes only
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.
![Review Details](/content/dam/amex/en-us/business/blueprint/help-center/business-line-of-credit/vendor-payments/ReviewDetails.png)
For illustrative purposes only
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.
![Sign Loan](/content/dam/amex/en-us/business/blueprint/help-center/business-line-of-credit/vendor-payments/SignLoan.png)
For illustrative purposes only
Step 1: Manage payees
Under “Quick links” select “Manage payees” to view all payees including ineligible payees.
![Manage Payees, Step 1](/content/dam/amex/en-us/business/blueprint/help-center/business-line-of-credit/vendor-payments/ManagePayees1.png)
For illustrative purposes only
There, you’re able to add new payees and edit payee information.
![Manage Payees, Step 2](/content/dam/amex/en-us/business/blueprint/help-center/business-line-of-credit/vendor-payments/ManagePayees2.png)
For illustrative purposes only
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.
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American Express® Business Line of Credit, and American Express® Payment Accept are trademarks of American Express.
With American Express Business Blueprint™, customers can view their select business products that automatically appear on their dashboard at login. These products include American Express® Business Line of Credit, American Express® Business Checking, American Express® Payment Accept, and American Express® Business Credit Cards. Customers may also view the eligible external business bank and card accounts they choose to link to Business Blueprint.
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Kabbage Payments, LLC is a registered Payment Source Provider/Payment Facilitator sponsored by Fifth Third Bank, N.A., Cincinnati, OH.