Why Prepaid Cards are Best for Business
Whether you’re a new business or a multi-million dollar corporation, your company has one goal—to stay profitable and grow. Managing expenses and lowering your overhead costs are just a few of the easiest ways to accomplish this goal. Instead of relying on your previous spending solutions, consider something new. With the help of a business prepaid card, your company can stay out of the red while bringing in more green.
In the past, businesses have relied on credit cards to fund their orders and allow employees to make necessary purchases. While it’s easy to swipe a card, it can create a lot of major problems. Overspending, reconciling expenditures, and employee theft are just a few of the issues companies that use corporate credit cards are facing. Prepaid corporate cards, on the other hand, are an amazing solution. Because of the various hard-to-ignore benefits and the control it puts back in the hands of the owners, many businesses are making the switch to prepaid.
Less Overspending and More Capital
When your employees have access to company credit cards, they have the ability to overspend. In their eyes, it’s much easier to spend someone else’s money—especially when it seems endless. With a high credit limit and no one monitoring the card, it’s easy for them to go over budget. When your employees overspend, it forces you to compensate for their error and pull money from somewhere else in the business. Overtime, this eats into your profits. Instead of losing money due to overspending, use a corporate prepaid card. Prepaid cards allow you to set a limit that can be spent on each of the cards that you issue. Simply load each of your cards with a designated amount and hand them to your employees. Once the money is gone, it’s gone! You can choose to load it with more or simply wait until the next month. This type of spending strategy forces your employees to be better with the budget and prevents you from having to reallocate money due to their overspending.
You can’t create new debt when using a corporate prepaid card. It’s virtually impossible. If your employees attempt to make a purchase for more than the limit available on the card, it will be denied. This means that you don’t have to worry about paying anything off or making minimum payments. It also means that there’s no credit limit or APR that you need to be worried about. With no monthly payments, that’s more money in your pocket!
Streamline Your System
Prepaid corporate cards aren’t just for tracking employee spending. In fact, they can provide an easier way to manage salaries and reimbursements. Employers can offer their employees the option of having their salaries directly deposited onto their prepaid corporate cards each pay period. It’s an ideal way to send money quickly to employees who are due for reimbursements. You can even use your prepaid cards as an incentive for your employees. Whether you give them away like gift cards or load an additional monetary amount onto them from time to time, your employees will enjoy using them as a bonus system. Once in their hands, employees can use these prepaid debit cards as they would any other credit card. It can be used at stores, online, or at petrol stations, making it an ideal solution for both employees and employers.
Promote Your Business
While prepaid business cards offer a better way to control your employee’s expenditures, they also present an out-of-the-box method of marketing your company. Most prepaid card companies allow you to choose logos or pictures to put on the front of your cards. When your employees use these cards, it’s an automatic advertisement of your brand. Giving away prepaid gift cards with your company’s logo and name is another great way to get your name out there.
It’s time to think about your employee spending differently. Instead of using credit cards, make the switch to corporate prepaid cards. With the help of your new spending solution, you’ll find it easier to increase your capital and reduce your overspending.