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Are You Monitoring Your Corporate Credit? |
By:
Robert Bain |
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Are You Monitoring Your Corporate Credit?
Robert Bain
How close of an eye do you keep on your corporate credit accounts? Chances are that you don't look at them as often or as closely as you should. Don't let this be an open invitation for criminals or other employees to take advantage of you. Building up corporate credit is hard and they can destroy it for you.
This can happen at the hands of someone that works for you, used to work for you and is angry, or a complete stranger that found an opportunity. Remember that corporate credit can come with very high limits. If a business has been very responsible with it, establishing new accounts is a snap. This is where identity theft of a business can become an issue to reckon with.
Even though there are screening processes and background checks for employees, white collar crimes continue to increase. Have a good system in place to prevent your corporate credit from being compromised by your employees. There have been stories that employees have purchased homes and cars with corporate credit that didn't get noticed until years later.
While this is quite different from charging a couple of meals or a hotel room for personal use on the business credit card, neither scenario should ethically be happening. Those expenses quickly add up over time and will cut into the profits of the business. The larger company you have the more people may have access to corporate credit. This means it needs to be reigned in even tighter.
Realistically you can't take away their ability to charge what they need to in order to promote your business out there. The only solution then is to carefully monitor everything. Make sure all employees know what can be charged and what can't. Make sure purchases over a particular dollar amount require at least two signatures as well. All employees need to be made aware of both the policies regarding corporate credit and what the consequences of it are.
The corporate credit that you have successfully accumulated needs to be there for business related matters. If someone else has accessed it for personal gain then you could end up losing your business. Pay very close attention to what is taking place so that you won't have to see all you have worked for going down the drain.
Don't just buy new office furniture because it looks nice or because you have the credit to do it. Don't pay for a new building so you can expand your business without forecasting the volume of additional sales it will bring. You don't want to get into the position of owing a ton of money and then not profiting from those investments.
Always know what you have available in the way of corporate credit. Keep an eye on those accounts and who is accessing them. Ask in house questions about any issues that don't seem right to you. Make sure any lost or stolen credit cards are reported immediately.
Robert Bain - Discover the the difference between typical http://www.corporatecreditpower.com/smallbusiness.htm) small business credit and real http://www.corporatecreditpower.com/corporatecredit.htm) corporate credit at this website.
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Article Source: http://www.statssheet.com/articles/article65582.html |
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