Simplifying project procurement

SMEs often find themselves navigating a challenging financial landscape, where the documentation required by traditional banking institutions may hinder proper financial management. Consequently, some SMEs resort to using the company owner's business credit card, sharing it among employees as a workaround. However, it also exposes the business to potential risks, such as limited spending control, difficulty tracking expenses, and potential liability issues.  

Sources and related contentIt may sound The current practice of relying on multiple physical credit cards issued in the business owner's name and shared among employees across various projects and locations is creating a cascade of operational and financial challenges.

• Spending Bottlenecks: Shared cards frequently hit their credit limits, causing delays in purchasing essential supplies or services. This disrupts project timelines and hampers productivity, as employees are forced to wait for credit limits to reset or seek alternative payment methods.

• Administrative Overhead: Tracking and reconciling expenses across multiple shared cards is a time-consuming and error-prone process. This places a burden on administrative staff and increases the risk of inaccurate financial reporting.

• Security Risks: Sharing physical credit cards exposes sensitive financial information, increasing the vulnerability to fraud and unauthorized transactions. Additionally, the lack of individual accountability makes it difficult to track spending and identify potential misuse.

In essence, this reliance on shared credit cards creates a bottleneck that hinders operational efficiency, increases administrative overhead, and exposes the business to unnecessary financial and security risks.