When Victor Basso began working with his father at his family business, Elite Warehouse & Distribution Inc., they had no credit and no credit history. At that time, all bills were paid with checks or debit. Like many from the next generation who join a business, Victor had new ideas and fresh ambition that he brought with him to their trucking and warehouse business.
Elite is a third-party logistics company that unloads shipping containers that come in from ports around the world, such as China, India, and Pakistan. They bring the goods to their 100,000- square-foot warehouse in New Jersey where they sort, organize, and label the items and then load them into trucks and trailers and deliver them to major retailers throughout the U.S., Canada, Mexico, and Puerto Rico. And they do it fast — sometimes turning goods around in a matter of hours.
A plan to build credit and grow the business
Victor dreamed of eventually buying Elite its own warehouse and expanding the business, and he knew the first step on that path was establishing a business credit history. He already had his own personal credit history and had been a Delta Skymiles® American Express Card Member since 2018. So, when an American Express rep contacted him about American Express® Business Line of Credit1 he was immediately enthusiastic. “I told her, ‘This is something I’ve been wanting to do — to establish a business credit record.’”
Elite was quickly approved for a line of credit. “American Express,” Victor said, “didn’t play any games. There were no hidden fees. I felt very comfortable.”
Discovering the peace of mind of added financial flexibility
Within a few months, Victor had drawn on the entire line for a 12-month term and was experiencing the benefits of having extra business capital to help with cash flow as needed, like paying workers, paying rent, or keeping his warehouse equipment in good working condition. He ticks off expenses: “Oil changes. Hydraulic fluids. Fixing the wheels. That’s a few thousand dollars a month right there. You hate having to worry about how you’re going to pay for this, how you’re going to pay for that. The business line of credit from American Express helped make things 100% easier,” he says. “My blood pressure is lower.”
Spreading the word
Victor became such a fan of American Express® Business Line of Credit he even started recommending it to customers, friends, and work colleagues. He has told many other business owners about business lines of credit. “They love it,” he says.
Going forward, Victor says that with the competitive pricing of American Express® Business Line of Credit, he is considering using it to help finance the purchase of Elite’s warehouse equipment, such as electric jacks, order pickers, and the big machines that load and unload pallets. These are major business expenses that they had previously financed directly with the seller at high interest rates. “With American Express’ pricing, we could save.”
Now that Elite is on its way to establishing business credit, Victor has opened an American Express Business Platinum Card®2 account as well. “It’s beautiful,” he enthuses. “It came just when we needed computers for the office”
“American Express is really there to help me and to help grow my business.”
Story Footnotes
1American 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 new and existing Business Line of Credit customers at different times.
If you elect to have your loan funds disbursed directly to a third party payee, you are required to provide accurate and complete payee information. Payees must be located in the US or US territories. The per transaction payee payment maximum is the lesser of your then available line of credit and $100,000. Not all payee industry types are eligible. We may refuse a payee in our discretion or for reasons beyond our control. Loan funds sent to your payee may take up to three (3) banking days to post to the payee's business bank account, although payments may be delayed for a number of reasons and the payee's bank may have their own policy regarding ho quickly to post a payment.
If eligible, you can be approved in minutes for a line of credit for $2,000 to $250,000 when we are able to automatically obtain your business data and verify your bank account. If a manuel review is required, it will take longer to provide you with a decision.
2Individual Card product application and approval required.