Prepaid cards for business are considered one of the best financial tools around. After all, unlike debit or credit cards, you won’t be giving employees access to the company account. This is vital when safeguarding the assets of the company. That means you can rest assured no employee can run up any debt using the company credit card.
Prepaid cards for business also allows you to stay on top of your spending. You have the option to load whatever amount you want at the frequency that you deem fit. Also, unlike credit or debit cards, fees and other charges are very minimal. There are also no hidden charges or exorbitant interests.
If you are considering getting prepaid cards for your business, here’s all you need to know:
No credit history required.
Since no debt or credit is involved in the use of prepaid cards, your credit history won’t be looked into when you get one. If you are a new startup and have yet to build up your credit, prepaid cards can be ideal for you. Since you would be spending your own money, you won’t pay anything at the end of the month. This means you are also spared from costly fees, interests, and charges at the end of each month.
You can empower employees.
Traditional options can restrict employees and can lead to poor spending practices. With a prepaid card, you can stay on top of all the spending. Not only that, you also have the option to limit the spending of those who are using the card and where they spend it. That means, everything is straightforward for you.
You won’t have to go through endless expense and spreadsheets just to see where money is going. Also, unlike credit cards, you won’t have to wait until the end of the month just to trace where all the money went. You also have the option to check daily if you wish so there are no surprises at the end of the month.
You can allocate expenses to several cards.
Prepaid cards for business can be great if you want to allocate certain expenses on different cards. This is crucial so you won’t have to put everything in one card and get all confused as to how the allocation was spent. For instance, you can allocate transportation expenses to one card, miscellaneous expenses to another, etc.
With this kind of setup, everything is very easy for you to trace and manage. If you so wish, you can check expenses at the end of each day so you can gauge if there is a need for you to load additional money or leave things as they are. And since you can check on a daily basis (or more if you like), you can easily spot any discrepancies if there are any.
Once the balance on a specific card has been depleted, you have the option to wait until the start of another month to load money on the card or you can load it immediately if you still have remaining budget left. The great thing is loading money onto the card is a breeze. Depending on what the issuers have set in place, you have different loading options to choose from.
Compared to other options like credit or debit cards, fees and charges are typically very minimal. There is also no need to worry about going over the credit limit. Once the balance has been all used up, spending also stops automatically. Fortunately, you can always load money onto the card anytime you want to. Once the money has been loaded successfully, you can use your card right away.