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Message
Corporate Card 90-Day Payment Cycle
Posted on 1/3/19 at 11:50 am
Posted on 1/3/19 at 11:50 am
Amex.
My employer announced they are now waiting 90 days to make payments on the corporate cards. Employees are co-signed on the cards.
Employer assures us that our credit scores won't be affected by the rolling 90's, as long as we get our expense reports submitted in time so it doesn't go to 120.
Is it true rolling 90's won't hurt my credit? Or is this bullshite? I guess I'll find out one way or another...
My employer announced they are now waiting 90 days to make payments on the corporate cards. Employees are co-signed on the cards.
Employer assures us that our credit scores won't be affected by the rolling 90's, as long as we get our expense reports submitted in time so it doesn't go to 120.
Is it true rolling 90's won't hurt my credit? Or is this bullshite? I guess I'll find out one way or another...
6
Posted on 1/3/19 at 12:06 pm to deeprig9
Do you normally pay the credit card, or does the company?
Every company card I've ever had, I had to pay the bill and was reimbursed after I submitted an expense report. In a situation like that the card is yours, not the company's, and you are responsible for paying on time. If the company is telling you they won't reimburse you for 90 days I wouldn't be happy about it, but it won't impact your credit provided *you* pay the card by the due date.
OTOH, if the company always directly pays the card then it shouldn't impact you no matter how long it takes the company to get around to it. If that is the case though I'm surprised they'd even tell you what their policy is to start with.
Talk with HR and make sure you understand very clearly who is responsible for paying the card.
Every company card I've ever had, I had to pay the bill and was reimbursed after I submitted an expense report. In a situation like that the card is yours, not the company's, and you are responsible for paying on time. If the company is telling you they won't reimburse you for 90 days I wouldn't be happy about it, but it won't impact your credit provided *you* pay the card by the due date.
OTOH, if the company always directly pays the card then it shouldn't impact you no matter how long it takes the company to get around to it. If that is the case though I'm surprised they'd even tell you what their policy is to start with.
Talk with HR and make sure you understand very clearly who is responsible for paying the card.
Posted on 1/3/19 at 12:11 pm to foshizzle
They pay. I only have to pay for non-reimbursables like upgrades etc during travel.
Their notification for this new year is they continue paying it, but with a 90 day delay. So it is very important for us to submit expense reports on time, they urge, so it won't go to to 120 which would affect our credit.
Am I explaining this good enough?
quote:
if the company always directly pays the card then it shouldn't impact you no matter how long it takes the company to get around to it. If that is the case though I'm surprised they'd even tell you what their policy is to start with.
Their notification for this new year is they continue paying it, but with a 90 day delay. So it is very important for us to submit expense reports on time, they urge, so it won't go to to 120 which would affect our credit.
Am I explaining this good enough?
Posted on 1/3/19 at 1:22 pm to deeprig9
quote:
Am I explaining this good enough?
One would think, but I've seen plenty of posts on here by people who completely misunderstood something important like this so I'm assuming very little.
Posted on 1/3/19 at 1:26 pm to deeprig9
AMEX is giving them 90 days fee and interest free to make the payments?
I don't know if I'd want to work for a company that has a regular policy of not paying any vendor for 90 days, just because. Could be they are just idiots but they also could be having cash flow problems.
For comparison, when one of my clients goes 30 days past, I reach out to them to make sure they got my invoice and make sure there aren't any questions. At 60 days, I stop doing additional work until they get caught up or at least work out a plan to get caught up.
I don't know if I'd want to work for a company that has a regular policy of not paying any vendor for 90 days, just because. Could be they are just idiots but they also could be having cash flow problems.
For comparison, when one of my clients goes 30 days past, I reach out to them to make sure they got my invoice and make sure there aren't any questions. At 60 days, I stop doing additional work until they get caught up or at least work out a plan to get caught up.
Posted on 1/3/19 at 1:29 pm to deeprig9
quote:
Their notification for this new year is they continue paying it, but with a 90 day delay. So it is very important for us to submit expense reports on time, they urge, so it won't go to to 120 which would affect our credit.
Am I explaining this good enough?
I believe I understand what you are saying because we have the same setup. Card is through the company, but it has your name on it so it is technically "your card." You swipe it and submit expenses which they pay directly.
Personally, I think that's kind of a BS policy. 90 days is a long time to let expenses float out there. I can't answer if it will affect your credit, but I wouldn't be happy about that were my firm to try to do this. I would ask for an explanation for the move to this policy.
Posted on 1/3/19 at 1:31 pm to deeprig9
quote:
Employer assures us that our credit scores won't be affected by the rolling 90's, as long as we get our expense reports submitted in time so it doesn't go to 120.
Putting faith in someone I’ve never met in the accounting dept would make me uneasy.
Posted on 1/3/19 at 1:54 pm to Mingo Was His NameO
quote:
I would ask for an explanation for the move to this policy.
It's just a way for a Fortune 10 company to collect interest on millions of dollars for 90 extra days before paying it out. That much is apparent.
They probably did strike an agreement with AMEX for the better terms by threatening to move to Visa business services, and dumping Amex Concur as well.
So what is still up in the air is the credit score. Whether or not Amex charges extra fees or reports something is "late"... the bureaus still track that balance over 30 day cycles so if a balance sits there for three months, even if Amex doesn't flag it as "late", the bureau would still hit my score for having it sit there.... right?
Posted on 1/3/19 at 1:55 pm to deeprig9
I would ask to see something from Amex explaining the program. It could be true, but sounds off to me. Even if true, I don't like the program they are employing.
Posted on 1/3/19 at 1:56 pm to deeprig9
Fyi-my company amex doesn't show up on my bureau reports. Are you sure yours does?
quote:I don't think the bureaus will hit your score with a late payment flag, but if the balance is reported every 30 days, it will effect your credit usage rate.
the bureaus still track that balance over 30 day cycles so if a balance sits there for three months, even if Amex doesn't flag it as "late", the bureau would still hit my score for having it sit there.... right?
This post was edited on 1/3/19 at 2:00 pm
Posted on 1/3/19 at 2:01 pm to PearlJam
quote:
Fyi-my company amex doesn't show up on my bureau reports. Are you sure yours does?
My firm claims they do, but I'm not sure if that's actually accurate or if it's a scare tactic to keep expense compliance high.
Posted on 1/3/19 at 2:04 pm to PearlJam
quote:
Fyi-my company amex doesn't show up on my bureau reports. Are you sure yours does?
Yeah I guess I need to look into that before being too concerned.
Posted on 1/3/19 at 2:23 pm to LSUFanHouston
Why would you earn against working for a company that was able to negotiate such favorable payment terms? AMEX could say no but they are probably allowing it because it's a great customer with no issues. For the company, it's 90 days of cash discounting
Posted on 1/3/19 at 2:28 pm to LSUFanHouston
quote:
For comparison, when one of my clients goes 30 days past, I reach out to them to make sure they got my invoice and make sure there aren't any questions. At 60 days, I stop doing additional work until they get caught up or at least work out a plan to get caught up.
What if you didn't read the fine print on the purchase order that said net60?
Would you still harass your customer for payment?
Posted on 1/3/19 at 4:01 pm to deeprig9
quote:
What if you didn't read the fine print on the purchase order that said net60?
Would you still harass your customer for payment?
In my line of work, we don't typically deal with purchase orders.
But for the sake of argument, I'd have to consider if I want them as a client/customer. I'm not a bank... there is no reason for me to float you money.
Posted on 1/3/19 at 4:04 pm to Mr.Perfect
quote:
For the company, it's 90 days of cash discounting
After I wrote what I wrote, I saw someone mention the OP is at a Fortune 10 company. Presumably that's why they were able to negotiate such terms. AMEX is a big ole company, if they want to allow that, they can deal with it I guess.
But then, I go to this... why is a Fortune 10 company 1) worried about the 90-day float and 2) telling all the employees about it?
Also, I'll say this... a negotiated "90 days same as cash" deal is a bit different that a customer just deciding they aren't paying any bills until 90 days.
Posted on 1/3/19 at 8:57 pm to LSUFanHouston
quote:
why is a Fortune 10 company 1) worried about the 90-day float
90 days at 2% APY on millions of dollars quarter after quarter, year after year, are pretty good terms. It's like borrowing money at 0% interest and investing it in 3 month CD's, collecting the interest, then sending the principle back. Over and over and over. It's brilliant really. It is a revenue stream at the expense of merchants. But it is win-win, because the merchants on the other side of Amex are still getting their revenue from the company spending money there.
quote:
why is a Fortune 10 company 2) telling all the employees about it?
They told only their Amex holding employees, because we needed to be aware of the new expense reporting guidelines.
Posted on 1/3/19 at 9:01 pm to LSUFanHouston
quote:
In my line of work, we don't typically deal with purchase orders.
But for the sake of argument, I'd have to consider if I want them as a client/customer. I'm not a bank... there is no reason for me to float you money.
Mr LSUFanHouston, congratulations! We've awarded you the $10 million contract. Our terms are net120. All you have to do is sign here.
"I'm not a bank! There is no reason for me to float you money."
Posted on 1/3/19 at 9:35 pm to deeprig9
It wont affect your personal credit at all. The credit line is extended entirely through the company’s credit not yours.
The company likely dictated these terms with Amex and the 120 days is an internal policy to make sure people get their expense reports in before they pay the bill.
They were able to negotiate these terms because of the size of the spend and they likely pay it in full every 90 days (or each month once the cycle is set up). Amex is still making money on swipe fees.
The company likely dictated these terms with Amex and the 120 days is an internal policy to make sure people get their expense reports in before they pay the bill.
They were able to negotiate these terms because of the size of the spend and they likely pay it in full every 90 days (or each month once the cycle is set up). Amex is still making money on swipe fees.
This post was edited on 1/3/19 at 9:43 pm
Posted on 1/3/19 at 9:37 pm to Mingo Was His NameO
Its a scare tactic
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