Using prepaid cards for business expenses makes for an attractive alternative to cash, debit, or credit cards. Depending on what your business is focused on you may not want to rely on borrowed money such as a credit card or allow access to the main pool of company funds through a debit card, and cash is often a bad choice as you lose all oversight of expenditure.
This is where prepaid cards shine for your business. You simply load up a card with the amount of money you want to spend and give it to your employees as necessary. And the best part is that no-one, not your business, you, or your employee needs to have a credit check in order to use prepaid cards for business expenses.
When you decide to issue credit or debit cards to your employees you’re going to want to keep that number relatively low. For one thing not every employee needs access to company cash at all times. And you’ll want to have an established process in place for signing off expenses that may limit those cards to more senior employees. In contrast, prepaid cards for business expenses can be assigned to any employee as needed.
Using a strong cash flow management tool, which you should have in place to monitor your business credit card activity, you can also track the expenditure being made via prepaid business cards. Making it simple to understand how and where money is being spent by your teams in your business.
Tracking in real-time means that you’re not having to wait for departments to reconcile expenses with interminable spreadsheets that may miss some purchases or have numbers slightly out of step with reality.
You can also top-up the cards with more money as necessary. It also works as an added benefit for employees as if they’re using the prepaid cards for business expenses such as travel for a conference then they don’t need to waste company time photographing receipts and scanning them into an app for reimbursement. And it means that they’ll be forced to stick to assigned budgets for events as there won’t be any other money for them to request that may slip through the net when your accounts team are reconciling the books.
Building your business credit score is important for accessing significant business loans and signalling the financial health of your business to banks or investors. Using a prepaid card for business expenses means that no-one in the journey, not you, not your business, and not your employee, will need to have a credit check. It’s simply a case of loading up the card with money and spending. This means that regardless of how good your credit is, or potentially how poor your employees’ credit is, prepaid cards are always useful for your business.
It also means that short-term or seasonal employees can be handed a card for business expenses if necessary. Prepaid cards are made to be completely flexible to your business needs.
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