ethanwa

Ok, so my business is growing rapidly. So far I'm spending roughly $60k/month on my card, with over $2k/day in charges. But because of my fast growth, I may need to spend $500k/month.

Has anyone here ever spent on that level with Amex month over month? Any experience from the high spenders out there? Or is a Corporate card what I need?

Just looking towards how I can grow and still get vast amount of credit to do with.

Ethan

IAH Oil Man

Are you just trolling around? This is what you posted last month on this site:

All I can say is that unless you have legitimate spending of $250k/year+, using business or personal expenses, good luck getting the card. Fudging the system to funnel that much money through is going to be incredibly tough. Amex is not going to let you make a one-time $250k charge if you've never spent that much before. It's just not going to happen. I spend $60k/month+ right now and even I get a denial every now and then because they want me to make a small payment ($10k or so) to ensure I actually have the money to pay the bill. If you can't afford to spend $250k/year on the card legitimately, how can you afford the $7500 fee the first year and $2500 every year after? Ethan

So if they are declining your charges at 60K how are you spending 500K on the card?

troyb

I'm sure there are plenty of business card holders with spend at that level and much greater. I can't imagine AMEX would turn down your business long term, however in the short term as you charge more and more each month, you may encounter hiccups along the way like the random declined charge, request for payment mid-month, etc. Based on posts here and elsewhere, this happens from time to time. In fact, I think it happened on my father's business Cent card a while back. That's just the nature of high-limit unsecured credit, at least with AMEX.

Although I'm not in this position myself, if I were, I'd do the following things:

1) Have a discussion with an AMEX supervisor (responsible for credit limits, etc.) to determine your real exposure level/limit. Based on their marketing materials, AMEX would like you to think that you have "no preset spending limit," however in reality they have an internal limit that they just don't typically disclose. You may already know this.
2) Start applying for some non-AMEX business credit as a backup in a situation where AMEX restricts your charging ability when you need to make business purchases

From some of your other posts it appears that you were highly focused on getting the Cent card. Now that you have it, you may consider moving some spending to an AMEX SPG card for better redemption options. I'm not sure what kind of limits you will get if you use your TIN, but that's some other (partially unrelated) advice. With the SPG card, you'll get the added benefit of having a more transparent credit line.

Good luck.

ethanwa

They haven't declined my card in quite some time since that post which I'm actually very happy about. No, I am not a troll, this is a legitimate question and post.

...and thanks troyb, that is good advice. Isn't the SPG a credit card? I was unaware that they would put limits that high I guess.

Ethan

arpiuk

I'm sorry guys for this maybe "naive" question. What on earth does one spend 500k on per month? As wild as my imagination can be sometimes, I just don't see what sort of business you guys have? Can you satisfy my curiosity, or is it confidential. I spend quite a lot, though nowhere near 500k per month, but most of my suppliers only accept bank transfers.

Dying of curiosity....

Rambuster

Filling up ones Gulftream V with A1 jetfuell can be quite costly !

gleff

I know that Amex will approve monthly charges on my small biz platinum at the 400k level. They do a financial review annually, and keep asking me if I want a higher support level, I never tell them I do.

Aggie

On our business cent. we run at 100k a month for the last 2 years. 2 months ago the bill went to 150k and I got a call the next day from underwriting. They wanted more information about the company – I had no problem giving it to them, but I did not like the way they asked.

The lady said, “If I don’t provide the information them we (AMEX) will have to reevaluate our relationship.” It was the most passive aggressive I have ever heard someone form AMEX – usually they are very cut and dry.

They did not decline any charges, during this period, only threatened to.

When I called customer service, they said that “due to current economic conditions, all American Express accounts are being reviewed by underwriting.”

Club_IC

This is excellent advice from troyb. As you build a relationship with someone on the credit side, you get a much better idea of the issues which will affect your credit history with Amex, as well as a more transparent understanding of the exposure Amex will take on your account at a point in time based on your account history and spending patterns.

As individuals at a decision making level get more comfortable with you, the background to your spending and your approach towards using your card (e.g. contacting credit in advance, if you plan an unusual sized transaction based on previous history), they start making useful notes (useful from both their perspective and also yours) on your account, which will be read by other individuals if someone who usually looks after your account is unavailable.

In the end of the day, it is to at least some degree about personal relationships and human understanding of your credit-worthiness and attitude towards debt exposure, as well as semi-automated credit decision making.

ethanwa

For me it's advertising. That is about as detailed as I will go.

SusanDK

I know many internet marketers who use Google Adwords or similar (pay per click advertising) at a very high level. If they can set up campaigns that turn a profit, however small, it is fairly easy to scale up.

One marketer who teaches the method even made a blog post not long ago referring to getting the black card via this route, which might account for the sudden interest by several new posters.

Susan

TravelStar

I've had a Centurion account I use for business for about five years. I have about 25 employees that are supplemental Cardmembers on the same account with gold cards. As I remember it, when we first switched the Primary account from Platinum to Centurion we were spending about $60,000 a month. Our initial Centurion credit line was $150,000/month. Over the years our monthly spend has increased to an average of $300,000/mo, while our credit line has increased to it's current $750,000/mo. We've never asked for a credit line increase but we do have to submit annual financials.

majorbta

You talking about this guy?

super-mileage-fan

Sounds like your business is going well!

Getting a Centurion probably doesn't substantially increase your "hidden" charge card limit -- it is probably pooled with your limits from other AMEX charge products (e.g., Plat. card).

I would suspect your charge card limit is somehow a tied to your pooled AMEX credit card outstanding balance (from Plum, SPG Amex, etc.).

Still, if I had to guess, they might be a little more hesitant to unnecessarily decline a Centurion charge because they give Centurions premium attention and service.

Also, keep in mind when you get Centurion, they will ask you some financial questions and reset your charge limits (and possible your credit card limits) based upon the info you provide.

If you need to increase your limits quickly at any time during your relationship with AMEX, be prepared for a Financial Review (FR). If you are above board with organized finances and not a big credit risk, it shouldn't be a problem other than a small hassle. An FR is probably the same info you provide to a bank (e.g., for business loan or line of credit).

SusanDK

No, I was referring to these two guys.

AmEx Centurion has also been mentioned on the blog by the guy who wrote The Four-Hour Work Week (or something like that), although he admitted to not bothering with black and having platinum. It seems to be a trend among internet marketers, who may actually spending $10,000 in PPC advertising to earning $10,500, but the spend on AmEx gets them qualified.

Susan