Businesses should be very careful when it comes to protecting their business credit number. They need to protect it from misuse by thieves and fraudsters who may be looking to take out a loan. Some businesses try to protect their business credit number by issuing a debit card that is linked directly to their business credit number.
Unfortunately, this system does not work well for all businesses. The cardholders can only make purchases using the cardholder's account. Once the purchase is made, they are required to update their account details with the bank or credit card issuer so that future purchases can be made. The cardholder then reports any late or missed payments to the company. There are two problems with this approach. Firstly, not everyone will be as careful with their debit card as they are with their credit card and secondly, some of those who fail to report their transactions may end up being charged fees by the company.
In an ideal world, every business should have separate numbers for credit cards and debits. This makes accounting and cashier-related issues irrelevant and leaves the business free to concentrate on what it does best, which is making money. Unfortunately, separate business credit numbers rarely exist and as a result, the business is at the mercy of any fraudster who gets his hand in a few. By having a business credit number, the company is under no obligation to reimburse the fraudster for any goods or services that have been purchased over an unsecured line of credit.
It is quite easy for someone to obtain a business credit number fraudulently. He simply needs to have access to a business's bank account and a personal account at the same time. He would then create a number that looks to be legitimate and start spending money using the personal one in place of the business credit card.
A business that issuing debit cards to their employees should also have separate numbers for credit and debit card use. By doing so, they will prevent employees from overspending on their cards or using them for personal expenses. This will keep the company from getting into heavy debt. In addition, separate cards will keep the employee's name off the business credit record. This will prevent anyone from trying to take out money owed to the company.
For companies that issue invoices with a business credit number, keeping track of each invoice can be difficult. The best solution for this is to get a computer program that works as a notebook. With this type of program, every sale and payment will be inputted into the computer so that it is easy to track and monitor. The program makes entering the information into a hassle-free process.
Fraudsters are always on the lookout for business credit numbers. If you give someone your business credit number and he cannot pay for the item that he has bought, you may find yourself in a tight spot. Because of this, you should make it a point to keep all sales receipts in a safe place. This will help you to . . . . . . track all business expenses and will help you if anyone does try to use your business credit number to make an unauthorized purchase.
Finally, you want to make it a point to keep your business separate from your own. If you own a store, your credit card purchases will show as coming from your business, which is smart policy. However, if you are going to lease a space, make sure that you do not let your lease company see your credit card bill. You do not want to get in a situation where your lease company can sell your business to someone else if they see that you are paying your rent with your credit card.