1st (proper) card

manifold_2

I've always been a debit card user, but work have decided that we'll have to pay our own expenses now and claim them back, which could take anywhere up to 3 months. Unfortunately for me my business purchases tend to be irregular (a few times a year) and anywhere between £500 and £1,500 each time; not the short-term travel costs the new system is designed for, but they don't seem to be getting the message.

The only sensible option I can think of is to finally get and use a credit card. I don't like leaving money in my account - what's left goes into an ISA, and I don't want to transfer money in and out as I'll probably fill up my limit. I could go into the overdraft, but that leaves the possibility that it won't be there when I actually need it. I've had a card before in theory, but Natwest never got around to sending it to me and it was so much hassle to try to cancel it I've left it to expire (which I'm told should occur shortly as the account has never been used). I've no idea how that would affect me; I think my credit rating is good generally apart from that lack of use/repayments (plenty of bills paid in full and on time).

I'd guess the best thing to do is to transfer the money from a card into my account when I need it, and pay back what I can afford until the company pay me back. The trouble I'm having is figuring out how to go about finding a card that has a limit high enough without applying first and crossing my fingers as it doesn't seem to be something that's advertised. Could anyone point me in the right direction, please (or perhaps suggest a better alternative)?

never-in-doubt

all cards work on a rate/limit per risk basis so you'll never get preapproved without a credit search being performed. The higher card issuers seem to be Egg/MBNA/Barclaycard/Lloyds/Amex Credit Card/Virgin/Your own bank!

debtdestroyer007

yeah i wud def try barclaycard

simongregson

I would refuse to buy the stuff for work if they were going to take 3 months to pay me back, that's just taking the mickey! Have they given any good reason why they can't pay you back sooner? What happens if the company go bust before you get your money back?

My suggestion would be to tell the company that you can't/won't get a credit card so they will have to either pay you back sooner (say within 1 week, how hard is it for them to write a cheque!) or use their own money to run their business instead of yours!

never-in-doubt

simongregson wrote: »

I would refuse to buy the stuff for work if they were going to take 3 months to pay me back, that's just taking the mickey! Have they given any good reason why they can't pay you back sooner? What happens if the company go bust before you get your money back?

My suggestion would be to tell the company that you can't/won't get a credit card so they will have to either pay you back sooner (say within 1 week, how hard is it for them to write a cheque!) or use their own money to run their business instead of yours!

Most proper companies run accounts 6wks in arrears (i.e. you get paid in between pay days) but to be honest larger companies give you a chargecard i.e. a corporate card to put expenses on....

Its wrong to wait 3mths but then if its in your terms, it is acceptable (you agreed).

simongregson

Well, they haven't agreed yet - previously the company paid them for them. For the amount they seem to want £1500 etc. I would be worried that the company has major cash flow problems, it's not just like a train ticket is it! These are not just incidental expenses. What are these things that need to be purchased every few months that cost this, and why can't the company just order them? I would urge the OP to be careful about accepting this arrangement, speak to unions if they/others are members, and if not speak to colleagues because there is a definite danger they could be out of pocket.

manifold_2

Thanks all, Barclaycard did look like the best potential deal and I've been approved, so now I'm waiting on the papers to see what the limit is. If it's not enough my next step will be to carry out my usual debit card transactions and try to 'up it' before I need to cough up.

I'm not worried about the company paying me back. I think the variety of expenses claims people make is just something that they haven't considered properly and will be allowed for in time, but I can't rely on that being the case in the short term. The big delay is getting the proper confirmation of payments, etc that I'll need to claim it back. (For background these are membership fees / courses that for me, unfortunately, happen to be the more expensive ones as the company adopt their new policy. I think it's industry-norm, but not previously the norm for my company iyswim.)

simongregson

It is only the norm if you agree to it. When I do training the company invoice my employer for the course, I pay the travel and claim this back, but this would not normally be more than £70-80. I get this back usually, within 2 weeks. Why can't your company do this? I simply couldn't afford to give an interest free loan to my employer for 3 months, as far as I know it is not the 'norm'. Just my view, but I am sure that you are not the only one in your company who is having to suffer financially to sub your company, perhaps the management are not aware that £1500 is a very substantial sum to be out of pocket by for a few months!

I assume the company is going to pay you back interest you accrue on the sum over the 3 months?

manifold_2

The training company don't issue invoices, otherwise my company would pay them and I wouldn't need to find a short-term source of credit. I agree with your points, and I suspect I'll just have to keep reiterating them until management change their mind or tell me to leave off. :rolleyes: