With real-time benefits centered on control and convenience, more and more small businesses are opting for prepaid cards. Practical and user friendly, prepaid cards have become a preferred accepted payment method over traditional cash and checks. From accessing funds to financing employee expenses to making or receiving payments, small business owners can process hassle-free transactions.
Here are some of the key benefits to consider a prepaid card for your small business operations.
No Credit Checks
- We all know that commercial prepaid cards are not credit cards – prepaid cards are fueled by cash, and therefore do not require the same rigorous credit requirements as credit cards or traditional loans (only ID verification). This is because you aren’t asking for anyone to loan you any money; rather, a prepaid card allows you to use your existing funds.
Manage Employee Spending in Real-time
- For small business owners, providing credit cards to employees might be the easiest option. But it can become difficult to control employee spending without the opportunity to establish limits and restrictions.
- The expenses might be something as simple as back-office supplies purchases or business-oriented travel & expense programs. Keeping track of every cent could be a tough task. By using a prepaid card program, small business owners can easily make up for this disadvantage and stay on top of employee expense management.
- By providing a pre-loaded prepaid card, you can give employees a set amount of funds to keep their expenses within budget. Be it travel expenses, dinner with clients, or supplies and equipment purchases, small business owners can monitor every dollar spent in real-time.
Better Cash Distribution – Wise Budgeting Practices
- Misuse of a traditional credit card can also get you into a lot of debt. A prepaid card on the other hand, loaded with a predetermined amount of funds, can help small business owners stick to their financial plan and avoid unnecessary expenses.
- Under traditional budgeting practices, the budgeting and expense management could be ineffective if no one follows it. With prepaid cards, it can be a lot easier to manage your budget by managing individual expenses. Small business owners can load prepaid cards, setting limits for individual expenses, to help stay within the budget and run their businesses smoothly.
Easy to Qualify
- Small business owners aren’t required to undergo credit screening for prepaid cards, since prepaid cards are not credit cards. Using the flexible card solution, they can get their finances back in order meeting immediate business operational needs without experiencing setbacks.