Ethical problem a lot of us have probably had to deal with...

[spinjector]

Gentlemen (and ladies?),

I'm in a dilemma that I'm not sure how to handle, or if even if there are laws to cover it.

I work for a smaller broadcast company that refuses to get me either a credit card, not even net-30 purchase accounts at local or online vendors.

I am expected to make all purchases with my own money and then get reimbursed after filing expense reports and receipts.

At one point I had over $1,200.00 out for the company, and this has to stop.

Have any of the rest of you run into this?

How do/did you deal with it?

Thanks.

 

[Lazy J]

You could ask them to have some cash available at the business office that they could immediately reimburse you when you turn in receipts.

-OR-

You could look at the bright side and get yourself a credit card with cash back or airline miles. As long as you get reimbursed before you have to pay any interest, it could add up in your favor!

 

[chriscollins]

I'd get a business credit card for yourself with perks. Modify you're agreement to them that asset purchases are to be reimbursed within 5 calendar days of the purchase. Then pay off your bill promptly. I do something similar to that with an IT client of mine. I've probably gotten $150 cash back this year off of that card.

 

[SRP]

Are these items essential to keep the station on the air? If so, get your boss to use his personal credit card to buy those items.

 

[frankberry]

This has become the norm for really big companies as well.
I have made purchases for my employer. It took them six weeks to reimburse me for the purchase. They refused to pay the interest on the card.
My solution is to "just say no" when I'm expected to use my credit card to make purchases for the company.
If they need something bad enough, they will find a way to purchase them without using your good credit.

 

[Studio1]

I have a couple of signs in my workshop.

First one:

"OUR CREDIT POLICY"

You ask for credit, I no give - you get mad.
You ask for credit, I give, you no pay - I get mad.
Darn sight better you get mad.


Second one:

"MISSION STATEMENT"

We provide technical and engineering services to the pro-audio and broadcast industry.

We are not a bank. We do not have tellers, we don't lend money.

If you require credit, please visit your local bank, they provide this service.



Over the years there have been any number of companies that felt we should fork out our money to help them, and it just
doesn't work out.
Sure, there are times when we have to buy in parts or equipment to provide a service to the customer, but these always
have a good dose of profit added to the bill, so we are covered in terms of any interest we have to pay out.

 

[BobOnTheJob]

This has become the norm for really big companies as well.
I have made purchases for my employer. It took them six weeks to reimburse me for the purchase. They refused to pay the interest on the card.
My solution is to "just say no" when I'm expected to use my credit card to make purchases for the company.
If they need something bad enough, they will find a way to purchase them without using your good credit.

I do it as needed...fortunately, my cash flow is good enough that even if it takes a couple weeks to be reimbursed (5-7 days has been typical), I can cover it. While I rarely mark up the cost, my largest client recently asked me to purchase a $500 item for them and insisted that I tack on a 10% service charge...which I did with pleasure. Just make sure you keep the receipt...if they 1099 you for this (some do/some don't), you'll need to claim the amount to offset the 'income'.

 

[BobOnTheJob]

This all gets back to the most basic rule of contract engineering...Choose Your Clients Carefully.

 

[pellmell]

Get rid of your credit card. Then tell them that you're not in a position to cash flow them.

 

[RadeoEngineer]

Several years ago, an engineer I hired (me being the consultant) to build a station from ground up got into it for about $4k on his credit card. He had to place a mechanics lien and I don't know if he ever got paid because I resigned from the client as soon as I learned about it.

If the owner/operator needs it fixed, they need to provide for the expense of same up front.

 

[Bengalsfan]

Just say no. I worked for a company that expected me to do this. After getting nailed for late fees and interest, I said "no more". It's not your responsibility to cash flow the engineering department.

Now that I contract, I stipulate that I will make purchases only up to $100 (and those come with a heavy markup). Anything over $100 (except for a station being off the air) and it's the client's responsibility to procure. If they authorize me to get it for them, again, it comes with a steep markup. The markup serves two purposes. One, it encourages the client to get the parts/equipment on THEIR credit. And second, if they do want me to get it, I get the markup that makes up for me using my credit. I have too many people wanting to pay me net 30 on my invoices to them. If this is how they want to play the game, they are going to pay for it one way or another.

 

[ironbear]

It's becoming more common. In areas where there are spare "contract guys" wanting a piece of the pie, it's like another service they can offer to broadcast clients in a competitive environment.

But, make no mistake about it. You're carrying someone else's debt and you have to have strict financial terms under your agreement with the client. That includes a high enough interest rate for past due balances that it will get their attention, and collection provisions for any delinquencies.

I've written off substantial amounts in bankruptcy situations, and that should be a warning to anyone to keep a close eye on clients BEFORE deciding to underwrite a client's equipment and repairs.

 

[Tom Wells]

As a field service engineer I was a line of credit for my employer.
There was always about 2-3 weeks of my money in their hands.
It does become stressful. Once I had about 60 dollars worth of wiring and terminals etc, expenses, and the lady who does
expenses came to me and said she couldn't reimburse me for these because the ticket I had provided plainly said
"packing list" instead of "cash receipt" even though all prices and cash tendered were detailed.
I had paid cash since I was already tired of the whole credit/reimbursement cycle and using cash minimized this.

I looked at her, and told her that if Omaha were a bit more convenient, I might just go collect up MY wires, terminals and etc, and I didn't suppose the press would run anymore, but at least we'd be square financially...but as it was 2 in the afternoon on a Friday, and what they owed me was worth about 2 hours pay, I said good day and called it even.

 

[spinjector]

Gentlemen,

I am NOT a contract engineer. This is all about the company that employs me FULL TIME. =-(~

 

[RadioMan203]

I don't think there's any question, just don't do it and if you're already in a situation where you're roped in you'll need to make changes to get yourself from under - even if it includes getting a new client to replace the one you'll drop because of the nonsense they put you through.

At one station I contracted at they wanted me to front the cost of a replacement remote control for their facility. I told them point blank this was beyond the scope of any of the services I provide to the stations I worked for. When they went off the air and one of their underlings had to go figure out how to turn the transmitter back on at their site you be they ordered the remote control right then and there with their own funding.

 

[ChiefEngineer]

If you are full time they are using you, plain and simple. As an employee you are under no obligation to do this.

If any company is so underfunder, unorganized, to make employees cover the note for something they should be OUT of business.

Over the years I covered some expenses expecting to get reimbursed. Let me tell you this is an invitation to get burned. A good company wouldn't expect this. An ethical company wouldn't expect this. One time thing, maybe, if it is under $100 and an off air emergency. I bought a sump pump after a flood at a site we had never had a flood. Inches from the plate supply.

1099 for reimbursement? No. Reimbursements are money you spent then were paid back. This would be taxing the same dollars many times.

The bottom line is that people are scheming to keep their money. This often involves taking your money to keep theirs.

 

[Lazy J]

Gentlemen,
I am NOT a contract engineer. This is all about the company that employs me FULL TIME. =-(~

OK, so the big question I still have is this;
Do they reimburse you consistently and in a timely manner, or is it a constant battle to get your money back?

I like my job and I actually like the company I work for. I would not jeopardize my long-term paycheck over an issue I could live with. As I said before, if they are good about reimbursing you quickly, make the best of it with a cash back credit card. If they are slow to pay and it's costing you, politely as them to have some cash available (or a check book) to reimburse you immediately.

If all else fails... ask yourself, is this the hill I am willing to die on?

 

[OKCRadioGuy]

I'd quietly look for another gig. Appearently your employer is having some issues finacially IMHO. If they cannot figure out how to pay for equipment on their dime first, then I question if they'd qualify for a credit card themselves, if you know what I mean. The good news is many stations are crying for real engineering help these days. There's more work nationwide for good engineering help than there is help.

 

[spinjector]

@spinjector... the post was directed at Tom, not you. Hopefully no offense taken because none was intended.

No worries. The banter in the thread seemed like many thought I was a contract engineer. =)

 

[Bengalsfan]

OK, so the big question I still have is this;
Do they reimburse you consistently and in a timely manner, or is it a constant battle to get your money back?

They may reimburse you in a timely manner, that does not mean they always will. All it takes is changing one key person in the chain of command to stop that.

If they are slow to pay and it's costing you, politely as them to have some cash available (or a check book) to reimburse you immediately.

If they are slow in paying, what makes anyone think they are going to change? They won't. Once a slow payer always a slow payer.

If all else fails... ask yourself, is this the hill I am willing to die on?

If it's costing me trouble, money or heartache the answer is yes.