Company Credit Card

Bob78

Hello Martin,

I'm seeking your advise as I have a company credit card from my employers. My employer is often slow paying me my expenses which means in turn I am slow to pay off the credit card.

I can't afford to pay off the credit card until my employer has paid me.

Will this effect my credit rating? If so, is there anything I can do?

Herbalus

Surely the idea of a company credit card is that the company gets the bill and then pays it themselves?

If you are paying a credit card bill and waiting for reimbursement from your company, it suggests to me that it is your personal credit card. And yes, if you pay late/don't pay then it will affect your credit file.

If it is a company credit card, they should be paying the bills direct. If it is your credit card and you are worried, ask for an advance for the purpose of expenses (of your average, reasonable amount). You would return this sum when you left the company or have it deducted from your last paycheck.

P.S. Also, I doubt Martin personally reads every post....

InsideInsurance

Herbalus wrote: »

Surely the idea of a company credit card is that the company gets the bill and then pays it themselves?

In recent years I have known a number of companies where it is the employee's responsibility to settle their corporate credit card bill and the bill only reverts to the company paying it directly at the point of default. It is more akin to the company being the guarantor than the holder.

As to if it impacts credit rating etc, I know in the two companies in question employees were told it didn't (though they had to pay late payment fees) but on the basis I didnt have a card I never tested the theory - I've always preferred to have my own card and get cashback/ points rather than the client/employer

Hominu

I have a company credit card which I've never seen a bill for - it has the company name on it and my name also, used to use it regularly, but I've stopped using it now for a few reasons:

The stores we use charge more for a corporate card than a personal card, so we end up paying more.

If I use my personal card, I get cashback.

So it's win/win to not use the company provided card (of course, as long as you can afford to pay for it and then reclaim the expenses)

suze369

I have a Company Credit Card - it is in my name and I am responsible for claiming my expenses in time to ensure it is paid in full every month. It's not a great situation but my company is very efficient at processing expenses so I am lucky.

Can you talk to your boss about ensuring everything is processed in time for your payment date?

planteria

InsideInsurance wrote: »

In recent years I have known a number of companies where it is the employee's responsibility to settle their corporate credit card bill and the bill only reverts to the company paying it directly at the point of default. It is more akin to the company being the guarantor than the holder.

i wouldnt fancy that deal at all.

i would take this matter up with your employer straight away.

if you can pay for business expenses on a personal card, earning cashback/points for doing so, and then get the company to clear it all within the IFP, then great. otherwise, just try to ensure that it's their debt from start to finish.

good luck.

inmypocketnottheirs

Fortunately my HSBC Company Visa card is settled directly by my employers. I get the statement to match my receipts up with and then sign it off.

richard734

It is becoming more common now to make the employee pay the bill and claim it back via expenses. Cuts down on unexplained debt (because employees haven't done the paperwork) or staff personal use that the company then gets saddled with.
The normal provision is that if due to the company not paying expenses on time, the employee can put another claim in for interest or late fees.
In the ones I have seen set up, there is no credit reference checks done on the actual employee, and credit information is related back to the company - except AMEX who have been known to refuse to issue a card but if that is because of credit ref or internal checks, I don't know.

Hope that helps

Herbalus

richard734 wrote: »

The normal provision is that if due to the company not paying expenses on time, the employee can put another claim in for interest or late fees.
In the ones I have seen set up, there is no credit reference checks done on the actual employee, and credit information is related back to the company

Do you mean that a late fee would not be marked on the employees credit file, but rather on the company's credit file?

Not sure that's a better solution for the company!!

richard734

Sorry, been away
Let me show the process to see if that makes more sense

Normal Company Card, employee spends, company settles all bills on due date, and in some cases, spends weeks/months/never manages to get all the spends reconciled as for whatever reason the employee cant be bothered (ignoring all us good, paranoid people who always do it on time!)
Employee Managed Card, company acts a guarantor, so employee spends, gets a bill and pays on due date either having already put expense claim in to cover, or quickly puts one in to refund their own bank balance. in about 75% of these (not including AMEX) the company picks up the bill if the employee does not settle within a set amount of time.
There is very rarely a late payment marker put on file for any party even if it is late. but, big fat BUT here, check with HR/finance dept at your company as to the nature of the agreement. In the AMEX example, I believe that the company just acts as a referee for the employee and all debt/credit markers etc are purely down to the employee and once the company have stamped the form, they have no further responsibility.

Hope that makes more sense now?