For many entrepreneurs, prepaid cards for business are total game-changers. In fact, many consider them one of the best financial tools available right now. Unlike credit or debit cards, prepaid cards for business won’t give employees easy access to the company account.
This is important so employees won’t be able to use the company’s money for transactions that are not valid. Prepaid cards for business also help ensure you stay on top of your company spending. You also have the option to load the amount you deem fit.
In addition, unlike other plastic cards like credit or debit cards, fees and charges are very minimal. Prepaid cards for business also don’t have any exorbitant interests or hidden charges. For those who are considering getting prepaid cards for business, below are the basics you need to know:
Your credit and financial history will not be looked into.
Since prepaid cards for business don’t have credit capabilities, you will not be required to submit your credit or financial history when you obtain one. If you want to build your credit, prepaid cards won’t be able to help.
However, indirectly, you can use it to ensure you stay on top of your spending. Since you won’t be borrowing money from the provider, you won’t be paying any interest at the end of the month. Also, no costly interests, fees, and other charges.
You can use it to ensure employees are empowered.
Conventional options like debit or credit cards can result in poor spending practices. Fortunately, with a prepaid card you always stay on top of your spending at all times. In addition, you get to control how much money you will load on the card so there are no surprises along the way.
Also, with a prepaid card, you won’t have to use endless spreadsheets just to see where money goes. Also, unlike other conventional cards, you won’t have a hard time tracing where your money went. You can also easily figure out how much you need to load monthly to cover up for your expenses.
You can use multiple cards for different expenses.
Prepaid cards are the best option if you want to allocate a single card for each of the company expenses. This is important so you won’t need to put a huge amount of money in one account and risk losing it all when the card gets lost or stolen. Depending on what you want you can use one card for each key expense.
For instance, you can allocate one card for all your transportation expenses, while another card for your miscellaneous spending. This setup makes it very easy for you to trace and manage everything. You can also easily spot any discrepancies since an expense is allocated into one card.
Once the balance on any of the cards has been depleted, you have the option to wait until the end of the month to load money on the card again or to load it right away if you deem fit. Fortunately, loading money onto the card is as easy as can be. You also have different loading options to choose from.
Compared to conventional plastic cards, charges and fees associated with prepaid cards for business are also very minimal. You won’t also have to worry about going over the limit or spending more than the amount you want to allocate as spending stops automatically as soon as the balance on the card has been used up.