Some Methods To Protect Your Small Business Line Of Credit
Whether you are a business owner of a convenience stores, retailer shops, or gas stations, how do you protect against company mal-practices? If you own a small business then you’ve probably established some credit lines with local vendors. If you have a firm that has workers then you may be in a position of having to trust other people to use those credit lines on your behalf.
Businesses often have employees such as delivery drivers, someone who fills out expense report. Some people that are trusted to pick up tools once in a while. For example if you own a carpentry shop, plumbing company or other such business. You may be the boss and you often need things so you don’t get the time to be running out to the store every time a person in your business needs something. So then the plain answer is you direct someone to go out and do it. Unless you want to give that person a check every time you need something you are better of establishing some sort of business credit line.
Commonly the company you established the credit line with will have the person picking up the item sign an invoice to confirm the payment for their records and then give a second copy to the customer. It is your employee’s responsibility to give you that copy so you can pay the bill when it comes due. Over time as the person doing your shopping becomes known to your suppliers, then the chance for abuse manifests itself.
When it is time for you to the bill, you should observe it cautiously. This is your opportunity to check and see if any other suspicious event is taking place. Check the invoice for things like the date of the purchase was made and if included on the invoice what time did they make the purchase? Was the purchase made during normal company hours or was it after? Often such fallacious purchases are made on a weekend. People that abuse your trust many times could try to do things after hours and tell the vendor about staying late.
There are certain steps you can do to avoid the problem. Most vendors maintain a card of approved signors from your company. This way if you spot a signature you do not distinguish the vendor can be held reliable for permitting the payment. It will still be your responsibility to handle the employee and their action. You can also inquire the vendor to send copies of all invoices to you so that you can verify all purchases. You can communicate clearly to all employees that you do check all the statements and invoices from your vendors but don’t make it sound so threatening though.
Nearly all employees would never be regarded as abusing the trust given to them by an employer but there are always some that feel they can get one over on the boss. They could want to get back at you due to not giving them a promotion, or being disappointed about some result. The point of course is that it does happen and it’s better to be safe than sorry in the future.
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