Company Credit Card

Swans1912

I've been told to apply for a company credit card because it looks like I will be doing some travelling over the next few months. I didn't want the money to be leaving my account and then having to wait 20+ days to get it back!

How do company credit cards work in terms of your credit rating? Would they even show up on there?

jonesMUFCforever

Surely your employer does the applying - you get one of their cards - normally bills get sent to your employer for paying.

I would think of an employer card as one where you are a secondary holder.

wabbit02

Our company credit card works in the same way as a personal one e.g. I was credit checked and the bill comes to my address - I am then responsible for paying it - and I still have to reclaim the expenditure via expenses. I believe that it varies though as my Father gives his employees cards, that are only against the business (I'm not sure if they where credit checked - I don't believe so), he settles the bill at the end of each month (after checking that they haven't booked their next holiday on it ). My limit was much higher though.

I think it generally depends on the scheme the company is part of - ask.

Swans1912

I apply for the card by an internal application form that then gets sent to HR.

Like wabbit02, i had to agree to t&c that state that is it up to me to pay the bill which is also sent to my home address. I have to claim the money back via the expenses and then pay the bill.

The limit is only £2500 so not too high, and the balance will get paid off in full each month. I'll give them a call when I get the card, more of a general question really!

aah

you might as well have your own separate card then, if you have to pay it off. Why not get one that pays cashback or gives discounts. You then pay it off in full every month and wait for your exes to come through. Doesnt sound like a business card to me.

My business card has my name and the company name on it. Statement, with my card details on it, comes to the co, I then check it, append the receipts, code the expenditure and authorise it for payment, Company then pays the bill.

Zebedee69

Why dont you get a card that gives you cashback. Might aswell earn some extra money if company is expecting you to foot the bill.

Make sure they pay you on time too! If they are last charge them the interest you will be paying!

Swans1912

aah wrote: »

you might as well have your own separate card then, if you have to pay it off. Why not get one that pays cashback or gives discounts. You then pay it off in full every month and wait for your exes to come through. Doesnt sound like a business card to me.

My business card has my name and the company name on it. Statement, with my card details on it, comes to the co, I then check it, append the receipts, code the expenditure and authorise it for payment, Company then pays the bill.

It is certainly a company card, it has HSBC Corporate Card with the companies name written on one. I've seen the card because the partner, who work for the same company, has one.

The card is linked in to the expense system so anything we use it for is automatically logged ready to claim back. Having a cash back card is a very good idea however I'll have to check its not against company policy.

OCDOCD

My company credit card has my employer's name on it (Company name) with my name underneath - I don't see any bills, all goes straight to our accounts dept. Seems strange having a company card that you have to pay..?

Swans1912

OCDOCD wrote: »

Seems strange having a company card that you have to pay..?

I wouldn't know, never used anything else. The bills will get sent to my address and it is up to me to pay it, the money to pay it with gets paid in to my bank account.

Going to check with the boss tomorrow to see if I can use my own card, don't see why not!

BlondBoy

Lots of places I've worked have had similar situations - it's not as odd as it may sound.

The idea is that if the employee is personally responsible for paying the bill, they're more likely to keep a closer eye on the expenditure on the card and - most importantly - submit expenses claims on time.

Most firms who operate this system will insist you submit your expenses strictly on a monthly basis with a clear cut off date. They know the amounts that are coming, as they can see what's been spent on the card - they just check monthly how it's been spent through the employee submitting vouchers/receipts etc.

You should find that, so long as you submit your expenses claim on time, it will be reimbursed to you in advance of the payment needing to made on the card. eg: expenses claim to be made by 1st of the month, payment will be received into your account on the 10th, payment due on the card on the 20th and so on.

So if you run your expenses well and on time, it doesn't cost you anything. If you run it chaotically and don't submit receipts on time, you have to use your own money to settle the bill. More of a 'stick' approach than 'carrot', I grant you, but it does make sense.

Only thing to be careful of is how late or non-payment of the card is treated in your T&Cs of employment. One place I worked it was - make two payments late and you lose the card (and therefore expenses must be paid initially out of your own pocket until reimbursed). But another was - miss three payments and you're dismissed. So well worth checking.



Chris

wabbit02

BlondBoy wrote: »

But another was - miss three payments and you're dismissed. So well worth checking.

Nice!

personally I love the whole expense and claim back thing - especially when your traveling (out of the county) for 2 months with no way of submitting the 7K + total. Also interesting is when finance query the conversion rate and refuse to cover the interest.