Every business aspires to grow and stay profitable. And to achieve this objective, companies have to improve their budgeting while managing expenses. Prepaid cards are one of the recent spending solutions that help a company to manage their spending and monitor cash flow efficiently.
A prepaid business card is a convenient way of accessing funds similar to credit or debit cards but without the risk of overspending. From security, convenience, ease of use to cost-saving, these cards offer numerous benefits to businesses. In this article, we will discuss
- Six ways businesses can benefit from prepaid cards
- How to select the best-prepaid cards for your business
The Benefits of prepaid cards for businesses
Here are the six ways a business can benefit by switching to prepaid business cards
Any business people, either running small businesses or large corporations, making use of prepaid cards can attest that using these company cards makes your budgeting smoother and more manageable.
Because there is no credit line, your balance is usually determined by the prepayment you make to the card intending to spend. That’s why, as a prepaid cardholder, you do not need to worry about any possibility of you going into debt or incurring any fee resulting from running your card past the limit. As a result, a prepaid debit card makes it easy to track your purchases against your budget, more so between cards, cash, and accounts.
Nowadays, prepaid credit cards are like cash with an extra layer of security features. These cards protect you from any fraudulent purchases, theft, and loss. In case of a fraudulent occurrence, you can report to the issuing company to investigate the event and reimburse your funds back. As a result, prepaid credit holders can rest knowing their money is well protected in their cards.
#3. No need for a credit score
If your business is small and you don’t have a high credit score, the chances of qualifying for a credit card with a minimal interest rate are low. However, you will not need to produce your credit history or any financial statement with prepaid business cards. Since you are not a borrower, a credit check is unnecessary for you to receive your card.
#4. Easy to control employee spending
If your company employees can access your finances, prepaid debit cards are the best option to monitor their spending. If your business entails frequent traveling, prepaid credit cards will work wonders for you. Using this card, you can set your employees spending limit or monitor their spending for your books. That is why prepaid credit cards are ideal for any business or organization that is in the process of mitigating employee spending.
#5. User friendly
Nowadays, many people can use and understand how a credit card works. Prepaid company cards are easy to use, as they are used the same way as traditional cards. However, topping up your prepaid business card can be done by adding funds through a fund transfer from your company bank account. These business cards can make purchases anywhere regular credit cards are accepted.
#6. Stream the company expenses
Companies that introduce prepaid company cards to their employees can easily streamline their expense management. The management can easily monitor its employee expenses on an online dashboard. This feature enables the management to analyze and note any personal purchase made with the card. As a result, management can oversee the business expenditure with ease.
How to select the best-prepaid company cards for your business
Nowadays, any business needs to have a prepaid company card to help them cater to their diverse expenditure. Before you decide which card to choose for your business, it is vital to check out its features, scalability, price, and liability. However, the following factors will help you select a prepaid card with ease.
- Customer reviews
Checking out for customer feedback is crucial when deciding on the best-prepaid card for your business. Always go for a card company with positive reviews from its existing clients.
- Daily remits
It is vital to consider the daily limits the card offers. That will guide you on how much you can load or spend at a time.
- What features?
Any business manager should check out the additional auxiliary advantages each card offers to their business. Most prepaid cards will provide purchase protection, account monitoring, deposit, withdrawals, anti-fraud alerts, administrative controls, and spending controls.
Every company charge different monthly charges. It is vital to check out how much it will cost you to use your cards every month.
- Procedure to load
A good card will offer you several options you can use to load your money from your account to your card.
Prepaid business cards are the best spending solution every business should embrace. These cards are secure and help in curbing expenses. If you are currently running a business and need to manage your expenses more brilliantly, consider Soldo prepaid cards. With this card, deposits are free, and you’ll enjoy low FX fees of just 1% above the interbank rate. Plus, you’re always in control, with customizable budgets and rules on each card.