Credit cards with budget limits can give a business peace of mind when issuing expense cards to their employees. With the Emburse expense management system featuring the administrative ability to set budget limits, purchase categories and time restraints on expenses, business owners can feel secure when giving employees spending privileges. Here are 5 reasons why using credit cards with budget limits makes good business sense.
1. Reduce Spending
By issuing credit cards with budget limits, employees will think twice about pulling out the plastic to make a purchase. Knowing that the amount of money they are able to spend is limited, the employee will be compelled to consider the necessity of each transaction they make to ensure they have enough funds for costs that are absolutely necessary.
2. Reduce Fraud
By enforcing budget limits on business credit cards, any fraudulent purchases will be capped to a predetermined amount. Although budget limits can’t eliminate fraud outright, they can reduce the damage caused by deceitful spending.
3. Improve Credit Rating
Credit cards with budget limits will keep your expenditures below the credit limit associated with your account and will ensure your credit rating isn’t damaged by overspending. By keeping your credit card balances in check with budget limits you can be absolutely certain that spending won’t get so far out of control that your credit rating suffers for it.
4. Improve Budget Forecasting
By knowing the maximum amount that can be spent on the company credit cards, it will be much easier to predict the business’ monthly or yearly budget. Credit card spending limits can eliminate uncertainty related to employee expenses when forecasting the business’ total expenditures.
5. Minimize Liability Of Lost Or Stolen Cards
Although most charges made on a lost or stolen credit card will be nullified by the card issuer, having a spending limit already in place will cap the amount available for unlawful use. If, for any reason, your business is held liable for the fraudulent charges, the economic damage will have been curtailed.
The Emburse System
Emburse offers credit cards with budget limits as part of their expense management system. If you want to update your ability to control employee expenses, contact Emburse today for a free demo.