The world is constantly changing and the use of cash too.
When the representative of a company leaves the city on a business mission, the per diem represents a matter of trust and support.
There is the presumption that it will be enough to cover all your needs and that all expenses will be verified but this is not always the case.
Along the way it is common that you will find some unforeseen and that you will not always have a way to get a receipt for what you paid and that money becomes passive.
Traveling with a credit card
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It is like carrying a spare lifeboat. We know it should not be used but we are reassured by the idea that it is there.
The card supposes a stricter control but also a saving.
Reimbursement with tickets or invoices makes the process slower and cumbersome. The employee must not only unpack and deliver reports of his trip, but also must invest time in generating the accounts of what was spent and that also represents an expense for the company.
The business credit card
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It is a path that more and more organizations choose. Instead of delivering cash, they send their people with this convenient tool for both parties.
But there are expenses that cannot be covered with a plastic such as some transport, tips and certain unforeseen events, so it is convenient to “shelter” them with an extra cash. As if you were giving them a first aid kit that says: “Break in case of emergency.”
Siemens was one of the first firms to make this plan. We are talking about decades ago, when credit cards were something unattainable for most. So he signed an agreement with a bank. “You give all my employees a plastic and I answer for them.” It was a matter of “business confidence” that not only worked administratively, but at those levels saved hundreds of thousands of dollars in representation expenses.
Employees who always receive cash allowances may resist some resistance but objections disappear when they perceive the security that this brings.
Using corporate credit cards at first may seem like a complication for employees, but it has great advantages for companies.
Administratively generates information that the organization uses to make annual budgets and incidentally gives a certain discipline so that the company’s travel policies are respected.
In addition, its use also helps to receive better conditions from travel agencies and promotions due to loyalty programs.
Credit card companies have figures to ensure that their business cards can be used to pay up to 95% of travel expenses, including new taxi services that accept this means of payment.