If you are still using conventional credit cards to manage your small business expenses then it’s time you switch to a prepaid card. Credit cards provide very less resistance and are not a good option when you want to save money. Also, reports from DCR Strategies said, ‘the most common cyber crimes reported in Canada are from credit card fraud and that accounts for 21%.’
You can keep yourself away from all these troubles if you use a business prepaid card. Additionally, running your business operations will be much easier and you will have better leverage over the business cash flow.
Here are top benefits to learn that will give you more reasons to use a business prepaid card.
Staying within the Budget
Sometimes, even with a proper budget, your business expenses can go beyond your spending plan. It normally happens when you use a credit card and sticking to the budget will be beyond your control.
On the contrary, when you use a prepaid card for business, it reduces the risk of over-spending and helps you manage the cash flow better.
Not just that you can even track your budget in real-time and make timely decisions to keep your expenditures from going overboard.
Avoid Overspending & Monitor Transactions
The reason you spend more and get out of your budget plan because you don’t have something to stop you from doing so. Business credit cards do not give much resistance to how much you spend. The moment you make a purchase, you spend more, because you know you can do so.
As per the 2018 report published in valuepenguin, as much as 83% of businessmen are willing to pay more when making purchases through a credit card. On the flip side, using a prepaid you’ll have more control while purchasing something. If you have planned to spend $100 for supplies and loaded the same amount on your card, then you cannot spend anything beyond that.
Also, you can monitor and track all the money transactions and gain better control over our business finances. If your prepaid card service provider has an app, then you’ll get real-time alerts and messages for every cash transaction.
Fund Employee Finances in your way
Does your company have an employee expensive policy? And do you still manage things with cash? Then I’m pretty sure, your expenses will be exceeding your budget.
It might be as simple as the funding of back office supplies or the much expensive T&E program, but you will not do any better until you make use of a prepaid card.
You may have multiple employees attending this travel and expense program. It is not easy to monitor each one of them or how they are making use of your credit card.
Prepaid card, on the other hand, creates a highly visible environment that allows you to track and monitor employee expenses in real-time. Also, you can load the prepaid card with the amount you want to provide your employee and prevent unauthorized spending.
You will Enjoy Better Security Features
It is very expensive when you lose your credit card or checks. Your funds can get stolen or your identity can get damaged impacting your small business operations.
Suppose you want to make payments to vendors/suppliers, or pay employees, then you can avoid such risks using a prepaid card. In case, your prepaid card is stolen then you can cancel that card with your service provider and protect your funds from theft.
You don’t have to pay Interest rates
Since the prepaid cards will not be associated with your bank account, you need not worry about overdraft fees or interest charges. At the end of the month, you will not encounter any unexpected charges or high fees.
Additionally, you do not have to worry about credit limit; you can load funds on the go and spend without any restriction.
The Bottom Line
Switching to a prepaid card, financial management will be much easier. It is convenient than cash and easier to obtain. You need not have a bank account or a good credit history. You can load funds from anywhere, anytime and meet your immediate financing needs without obligations.