Tuesday, May 15, 2007

Fronting money for a company?

DH is away at a conference. The company is of course paying for it. But we are forced to front the bill for the week. So then they will reimburse us for rental car, airline ticket, food, gas, etc. I think this is very common, but I wonder what do people do who are in debt?

We currently float it on a CC until the reimburstment comes in. But for those who are in debt and not using CC, I wonder how they front the money? I mean this week is going to cost us over $1k easily and what would others do?

I wonder how do people handle having to front money for a company when they are in debt? I mean when you draw a line in the sand, how do you handle a company asking you to front so much money? I mean I can only imagine people who travel extensively for their company. Do they have company CC? Or do they just put everything on one CC and file it once a month? Still what if the reimbursement doesn't come quickly? How do you float that money? I mean for a lot of people the costs of hotels, airfares, cars, can quickly eat up a salary.

I think it's just an interesting dilemma. I know a lot of DH's b-school classmates have to front the costs for their companies. They have no other choice, that or no job. And they travel extensively. Most enjoy racking up the miles or CC perk, but I think it would bother me if it was a continuous thing. Right now this week is bothering me because I know it'll be reimbursed, but it's a nice chunk of change still. And if it wasn't reimbursed then what?


Anonymous said...

The company is having you float the money for them. You are actually extending credit to the company. It's supposed to be the other way around.
Think about it. Do you realize how much money these companies save? Off of your back!
There is no law that states an employee MUST have available credit. What if you tell the company you don't have credit, you don't use credit and credit is against your 'religion'? They can't fire you.
Insist on a corporate credit card and stop loaning your credit to a company that is supposed to employ you. Airfares, hotel room etc. are supposed to be paid for by the employer. Employees then receive a 'per diem' expense, like $50 a day (check the IRS guidelines) BEFORE you go.

Living Almost Large said...

Actually one of DH's coworkers asked and the company said no. It happens 1-2/year it's not like they are regular travellers. So it gets reimbursed. That is company policy period. If you don't do credit, then pay for it with cash, and they'll reimburse you with cash. Typical. Luckily it's a medium sized companies, small companies are worse.