A construction card is a type of debit or mastercard that is designed for construction businesses. Employees may use the cards to buy needed supplies or to pay invoices in the same way that they make purchases with other styles of credit or debit cards.
Construction businesses should try to mitigate their risks of fraud. A method they can do so is to switch from cash and check payment systems to bank cards or debit cards. Structure delittle cards or credit cards for construction companies can be used to make purchases while preventing employees from access the company’s accounts. The correct structure prepaid cards can help business owners in order to avoid their employees from withdrawing money or spending money on items other than what they are likely to purchase.
best credit card for construction
Construction debit cards are cards that are associated with a construction company’s account. When an employee uses the card to make a purchase, the funds are subtracted from the account rather than adding to your debt held on the revolving line of credit.
A credit card, by contrast, is associated with a line of credit. This means that your debt will increase with each payment or purchase that is made. A construction prepaid card is like a debit card, but company owners can prefill the card with the money that they really want rather than the card being linked to a bank account.
Construction business advice
Savvy construction company owners often hunt for advice for construction businesses so that they can increase their profits and growth. There are several great trade magazines for the construction industry that can be helpful.
Among other pieces of advice for construction businesses, implementing construction CRM software to automate processes and by using a business debit card to conduct day-to-day transactions are ideal for managing expenses. Most construction business advice is focused on helping construction businesses to reduce waste and cut costs while they give attention to growth, and cashless systems of payment and automation are two beneficial ways to help to achieve these goals.
Grow your construction business
To grow your construction business, you will need to implement several smart and focused strategies. You need to begin by conducting a thorough and honest assessment of the business. You must then work to bring in additional funds for your business through smart marketing.
Some construction businesses run successful social marketing campaigns that help them to generate new leads. As your business grows, it is equally important for you to utilize strong construction expense management ways of lower your losses while your income increase. Company debit cards can help to reduce abuse and waste. the business debit cards from Bento for Business feature expense management and spending controls that place you firmly responsible for the spending occurring.
Business Visa cards can help catch construction fraud early
Construction fraud is a prevalent issue in the construction industry. Based on the Association of Certified Fraud Examiners, losses due to fraud take into account 10 percent of construction costs. Construction fraud can be perpetrated by both external thieves and internal actors.
To prevent construction employee fraud and structure theft, it is important for companies to use steps to reduce their risks of falling victim to fraud schemes. Construction employee fraud may be caught early or prevented when companies be rid of reimbursement forms and check payments. Limiting your employees’ access to your company’s accounts and money by using construction prepaid cards can help prevent engineering theft in your business.
Construction fraud examples
In a construction fraud research study that was prosecuted by the U.S. Department of Justice, a director of it at the Clarkson Construction Company in Missouri was convicted of stealing $442,000 from the business. With this construction fraud example, the man purchased materials with the company’s credit cards that then resold to make profits.
The construction fraud case study is a construction fraud example that demonstrates the value of a good construction fraud detection program. The person could order several hundred thousand dollars’ worth of equipment over a one-year period. With better construction fraud detection, Clarkson Construction Company may have recognized the scheme much earlier so that the business can have avoided some of the losses it suffered.
A construction fraud research study
In another construction fraud case that was reported in the Indianapolis Business Journal, an office manager of a construction company pleaded guilty to a construction theft scheme and was sentenced to almost five years in prison. The woman’s construction theft involved her diverting $313,000 of her employer’s money to herself, showing the importance of structure fraud prevention.
The owners of the company at which she worked were required to liquidate their retirement savings and lay off some employees to keep their business open. The girl withdrew money from the company’s accounts and used its credit cards a huge selection of times to make payments for herself. The company did not notice the challenge until a corporation check bounced.
Construction credit cards and construction debit cards
To find the best construction debit card, it’s important that you look for one that has features that allow you to manage your expenses and control the spending at your company. A building debit card is a better choice when compared to a construction prepaid card or a delittle bit card for many reasons.
The features of a construction prepaid card over a credit card add the following:
Not credit dependent
Purchases will not increase your company’s debt
No high rates of interest or high gross annual fees
Easier for small businesses to qualify for
Can be used to remove reimbursement forms and costly payment processes
Construction expenses, employees and usage
In a construction company, expenses may accrue daily. During construction projects, your personnel may have to purchase building supplies. Other construction company bills can include equipment maintenance and lease fees, fuel for fleets, rents, utilities, and even more. A construction expense card can help to manage building spending.
Some construction companies have their employees purchase supplies and then reimburse them later. Some might likewise have long approval processes that can slow down the business’s ability to operate. All the expenses must be tracked, meaning that individuals must submit records of them and run reports. These manual processes can be eliminated by choosing to use construction expense cards. You may give your employees construction expense cards that are limited to only having the capacity to purchase the things that they want for his or her jobs.