Savings rates are up and debt is down nationwide
. Some of this is out of a desire on the part of consumers to become more financially sound and part of it is because credit sources have all but dried up. Households have begun opting out of the cycle of debt through renting instead of buying property to avoid a pricey mortgage, saving up to pay for cars in cash instead of taking out a loan, and turning to prepaid cards over credit cards.
While businesses often flourish by borrowing money to fuel growth, this new-found pragmatism in personal finances could benefit the corporate world as well. Carefully managing cash flow and putting aside money for new equipment and other expenses can still lead to growth, albeit a bit more slowly, which can also be more manageable. And business prepaid cards offer the same ease of use that comes with a company credit card but without the toll of high interest rates. In addition, it is much less stressful to manage a business that’s in the black instead of having debt dragging it into the red.
Toffer Grant is PEX's Founder and CEO. He founded PEX in 2006 as a prepaid card solution for small businesses. His background in the prepaid industry began at Clarity Payment Solutions, where he initiated 65 prepaid card programs in consumer, corporate, and emerging verticals of the prepaid card industry.