If there is one innovative financial tool that has become massively popular in the corporate world in just a short amount of time, it is prepaid cards for business. Nowadays, organisations and companies have ditched their other plastic cards like debit and credit cards in favor of this innovative and new option.
Many successful entrepreneurs are also now relying on their prepaid cards for business for their business transactions. What was once a financial tool that’s designed only for consumer use has evolved into one of the staples in the business world. With all the amazing benefits its offers however, it’s not really surprising.
From ease of use to peerless security, it is easy to see why prepaid cards have taken the business world by storm. Undeniably, prepaid cards truly offer benefits that are just hard to beat.
Prepaid Cards for Business: How It Works
Prepaid cards for business share a lot of similarities with popular plastic cards when it comes to looks and functionalities. However, they also have very distinct differences. For starters, when you apply for a credit card, your finances and business profile will be looked into and reviewed before they approve your application.
Credit cards also come with a predetermined limit that is decided upon by the issuer. On the other hand, prepaid cards will require that money be deposited on the card successfully first before it can be used for purchase transactions and ATM withdrawals. You are also spared from providing financial and confidential information.
Each time you make transactions using your prepaid card for business, the amount will be immediately deducted from the available balance on your card. This setup makes prepaid cards for business the best choice for those who would like to stick to a specific budget.
While it is also possible for businesses to get a credit card with a huge credit limit, it is also very easy for you to go beyond the budget you have set if you are not careful or particular about your spending or how you use the card.
Reviewing Financials is a Lot Easier
When using a prepaid card for business, reviewing your spending is a breeze. Also, with your prepaid card statement, you can quickly and easily reconcile your monthly reports. This means you can also easily check and trace where your money goes and you won’t have to spend countless hours (or days) just reconciling your financial records.
You can also quickly decide how much money you should set aside weekly or monthly based on your spending patterns. Should you decide to get additional prepaid cards for business in the future, you can also easily decide how to use the cards accordingly so you can take advantage of all it has to offer.
Obtaining Prepaid Cards is Faster
Getting your hands on a prepaid card for business is a walk in the park. Compared to other plastic cards like credit or debit cards, getting one is quick, straightforward, and easy. Also, since prepaid card providers are not loaning you any money, getting approved is undoubtedly easier.
Also, once your application for a prepaid card for business has been approved, some issuers provide the options to customise their cards with their business colors or logo. As a business, you also have the option to issue the card to a particular employee. You also get a generic company card that employees can use.
You Can Enjoy Flexibility and Ease of Use
One of the primary reasons business owners have gotten rid of their other plastic cards in favor of the dependable prepaid cards for business can be attributed to ease of use and flexibility. Since businesses are in control of the money they can load onto the card, making money management so much easier.